Building a New Home: 7 Ways to Save

The cost of building a new home depends greatly on the choices you make: the location, the footprint, the overall design and materials used. While it might not be cheap, building a new home doesn’t have to break the bank. You control your budget and the choices made- where to spend more and where to spend less. Below are some tips on ways to save on your new home project.

7 Ways to Save Money on New Construction

1. Determine your Budget

This seems pretty straight forward. Decide on how much you want to spend on your new home. Research the area(s) where you are interested in purchasing a lot. Meet with your financial advisor and your lender. Once you’ve decided on prices, make sure to communicate with your builder and stick to it. Pro Tip: A reputable builder will not throw in surprise add on charges at the end of the project.

2. Size Matters

The larger the home, the more you will spend. Sounds pretty simple, right? However, many people are surprised to learn that the footprint of the home can have a big impact on cost. It’s more expensive to build out rather than up. So, if you want a sprawling one story home, you’ll pay more than a two-story home of the same square footage. Pro Tip: Don’t let square footage fool you. The same square footage in a kitchen or bathroom space will cost more than the same square footage of a living room, bedroom or closet space.

3. Small Savings Add Up

Selecting less expensive options for flooring and trim will allow you to spend more money elsewhere. Laminate flooring in place of real wood, porcelain tile instead of stone, lower ceiling heights can add up to savings. Determine where you want to spend and where you can save.

4. Spend Wisely

Just because you add something doesn’t mean it makes your home more valuable. It’s important to balance what you want in the home versus a return you may want later. Adequate sized laundry rooms, outdoor living spaces, upgraded energy efficient windows and appliances are a few features that can be beneficial later on.

5. Factor in Landscaping/Hardscaping

This one gets missed a lot. Think about how you will landscape your home. Will you do it yourself? Hire a professional? Make sure to do your research on this and plan to spend accordingly.

6. Changes Cost Money- Budget Accordingly

Changes after construction begins happens more often than not and can cost more than if the same item was budgeted for at the beginning of the project. Changes are sometimes inevitable, as a better way to do something becomes apparent and you decide to go a different route. Regardless, it's wise to budget a contingency just in case you decide to make changes along the way.

7. Choose the Right Builder

A good builder will guide you through the building process and choosing the right one will determine how easy the process will be. Find a builder who is reputable and understands your what you want. Being up front with your budget will allow your builder to work with you to come up with additional cost saving measures.