Construction of a new home, or renovation of an existing home, can be one of the largest investments you make in your lifetime. With a few simple cost-saving pointers, creating your American dream does not have to become your financial nightmare.
- Review your construction budget as carefully as you review your construction schedule. With your contractor, review the budget line by line and be sure to question costs you don’t understand and delete options you don’t necessarily need. For example, if you are looking to cut costs, perhaps you can do without that custom molding or tray ceiling.
- Do it yourself if you can. If there are projects that you can do yourself for less, and you are willing to do so, take on the job. From painting to installing flooring, you can save thousand by tackling the to do list with your own DIY capacity. Be sure, though, that your DIY projects don’t hinder your contractor’s plans or slow the process – and be sure to complete those projects.
- Shop around. Get quotes from several contractors and evaluate your options. The best bargain is not always going to result in the best quality, so don’t always go for the lowest cost. But having multiple quotes will give you information to help make an informed decision. The same is true for loans. Banks often want to compete for your business so shop around to get the best rate and terms on your construction or mortgage loan.
- Take efficiency into account and go green where you can. Using sustainable and energy efficient materials may cost more up front but will save you money in the long run. Eco-friendly choices like water efficient fixtures and solar hot water heaters can help with utility bills.
- Good things often come in small packages. So work with your architect to evaluate your vision of room sizes and use of space. You may find that you can shave thousands off of your budget by scaling back on room size without sacrificing the living or storage space you need.