When you’re building a new home, you want to end up with the home of your dreams and no financial regrets. At Experts In Your Home we believe this is possible if you plan it right. You don’t want to end up with half of the home you wanted, and you also don’t want to end up with your dream home and a large strain on the budget.
How can you avoid financial mistakes? Through educating yourself ahead of time so you aren’t surprised down the road or too overwhelmed by the many decisions to be made.
To help you out, we’ve turned to U.S. News and World Report for a list of financial mistakes to avoid when building your new home.
To Avoid Financial Regrets when Building Your Home:
“Have the details in place before you start building. That means not just knowing how the floor plan will look but knowing how the rooms will be designed, says Jonathan Macias, a real estate broker and the president of the Macias Realty Group in El Segundo, California.
"Designing a house seems easy, but the amount of choices out there can be overwhelming for many. What color tile, what size, what pattern, will it match with the walls, what cabinets will go with this, what about the faucet?" Macias says. "All of these questions could be just for one small bathroom."
In other words, you don't want to be agonizing about how a bathroom should look and holding up your contractors.
Hire the right people. It should go without saying, but let's let Macias say it: "Do make sure you get all licensed contractors and professionals. Make sure they are properly insured and get references from past work."
Don't build too big. Sure, you may have a lot of stuff, and you might look longingly at mansions and want the same thing, but if that's the route you want to take, then think long and hard about what you're about to do. What may be right for you now may not be right for you in 10 years, or even next year.
"I meet potential clients in my office almost weekly who tell me, "We built a 6,000 square-foot home, but now we're dying to downsize to something smaller. Most families don't even need 5,000 square feet, and a home as small as 2,500 or 3,000 square feet won't feel small if it's designed properly, says Andy Stauffer, owner of Stauffer and Sons Construction, a homebuilder in Colorado Springs.
Think about the resale value now. Even if you never intend to sell your home, and plan to pass it to descendants, assume that you might sell it someday, Stauffer says.
"It's simply a fact of life. Most of us don't know for sure where we'll be in 10 or 15 years, as much as we'd like to think we do," he says. "I recently spoke to a real estate agent who had some clients that built a five-story custom home. They loved it, but when it was time to sell, they had to drop the price by tens of thousands of dollars and sell at a significant loss because nobody wanted to buy a five-story home and walk up and down the stairs all day long."
Keep your mortgage within reason. You can always add to your home later, creating the dream house when you can afford it, and build your realistic home now, suggests Joan Fradella, a family mediator in West Palm Beach, Florida."
Read the full list of financial mistakes to avoid from U.S. News & World Report here.
Custom Home Builders in Chico and Paradise
There you have it, a great list of things to avoid when building a new construction home. If you’re looking for a licensed contractor to manage your new home build, contact us at Experts In Your Home today! Our professional team of custom home builders will be able to alleviate many of the headaches of building a home because we know the process from start to finish. We’ll help you think through the above things and more. Contact us today!