When building a new house, one of the most important things you can do is control your building budget. Without careful planning, it is easy to go far over budget when building a home. Beginning without a building budget, making changes during construction, and poor craftsmanship are just a few of the things that can blow your home building budget or cause extra expenses.
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1. Most homeowners who embark on a home building project rely on obtaining a loan from a financial institution. This requires careful planning of the building budget up front. Begin by getting a feel for what things are going to cost. For example, visit several local lumberyards and find out what materials are available and their costs. Talk to the lumberyards about buying materials in bulk. Often, lumberyards will offer a better discount when all of the materials for the home are bought at the same time. This will slash your material costs. Also, compare the costs of luxury items verses budget items such as light fixtures. If a budget fixture is just as visually appealing, comes with a good warranty and serves the same purpose as the luxury item, choose the budget item. This tactic will cut wasteful spending tremendously. Using methods like these will help you save money and establish a building budget that works with your loan.
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2. Next, go over your house plans carefully and discuss everything about the design, the floor plan, special elements, etc., with your builder before construction begins. It is important to have all the details worked out with your builder ahead of time. Once construction begins, making changes to the exterior of the home or the floor plan can become very costly in a hurry. When changes are made during construction, it often requires the builder to tear down or redo some portion of the home that was already complete or near completion causing a waste of time, money, materials, and labor. ?
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3. Finally, you might not be able to control the local labor costs, but you can control who you choose to do the work on your new home. Interview potential builders, ask to see their credentials, visit other jobsites where the builder has worked, and ask the builder for references from past clients. Researching the builder you hire (and the subcontractors) will help you choose the most qualified and skilled builder you can afford. Your new home is a major investment. You don?t want to ruin the experience of building a new home with poor craftsmanship. If you end up hiring an inexperienced builder or subcontractors, it is likely you?ll run it to problems quickly. Poor craftsmanship means you?ll be spending more later to repair things that were not properly built, constructed or installed during the construction of your home.
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If you?re planning to build a new home, follow these tips to control your building costs.
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