Smart Ways to Save Money When Building a House

Constructing a new home is an expensive endeavor, with the average custom-built single family house costing well over $450,000. While if you build on your lot, you will have control over land costs, the experts at Jamestown Estate Homes say there are still many points in the process where budgets can spiral quickly out of control. Applying cost-saving strategies across design, materials, construction and finishes allows you to build the home you want while protecting your financial future.

Architectural Design Efficiencies

An architect who understands how to maximize space and simplify layouts is a must when prioritizing affordability. Submit pictures of homes with features you like to gauge an architect’s ability to meet your preferences cost-effectively. Scope attics, basements and accessory dwelling units which utilize existing foundations and roofs. Strategic overhangs, roof pitches and building orientations optimize solar gain to minimize future energy costs. Structural insulated panel (SIP) systems fuse insulation and structure for streamlined construction and temperature regulation. An efficient floor plan skimps unneeded spaces for a smaller footprint to heat and cool. A savvy architect has proven methods to build on your lot durably and sensibly.

Material and Finish Selection

Finishings and fixtures account for about 20% of new construction costs. Research stylish brands across lighting, faucets, sinks, tiles and trims at different price points. Set finishes budgets early and elicit contractor input on durable, affordable brands. Comparison shop specialty imports versus domestic fixtures, which achieve a similar aesthetic for less. Evaluate siding options like fiber cement versus natural wood for longevity, weather-resistance and pricing. Use marble, quartz or granite sparingly in bathrooms and kitchens to control expenses. Simple touches like painting the interior yourself or installing flooring after move-in shifts costs to when it’s more affordable. Analyze materials judiciously to realize substantial savings that don’t sacrifice design integrity.

Construction Process Efficiencies

Careful construction oversight ensures you get what you paid for without overpaying for careless errors. Review proposals thoroughly and question unusually high fees and provide plans early for contractors to optimize ordering and job sequencing. Compare lump sum versus hourly labor agreements to incentivize pace and use prefabricated components like roof trusses and flooring systems to streamline on-site building and trim labor costs. Size windows and doors to standardized sizes rather than custom fabricating. Install insulation correctly the first time rather than rework. Confirm city inspection requirements to avoid failing reviews and delays and keep an owner’s contingency fund for unavoidable change orders. Diligence in the construction process saves money and prevents lasting defects.

Financing Options and Incentives

Explore financing vehicles and incentives to reduce overall borrowing expense. Compare fixed and variable rate mortgages aligned with realistic budgets, not maximum approvals. Look for programs through state housing agencies, utilities or environmental groups that offer discounted loans or grants for sustainable building. Inquire locally and federally about first-time homebuyer programs, special development loans or tax reductions. Some municipalities waive fees and taxes for properly adhering to codes or zoning density. If you have the means, compare costs of phased versus complete construction. Investigate options beyond standard banks to fully optimize build costs and repayment terms.

Conclusion

Constructing a new home enables you to customize features while attaining pride of ownership. However, building is fraught with potential budget pitfalls if prudent decisions aren’t made across design, materials, construction and financing. Working with knowledgeable architects and builders lays a strong foundation. Analyzing options for maximum efficiency, simplicity and value controls expenses. Seeking additional financing incentives further reduces overall outlay. Applying these smart techniques for saving money allows you to achieve your dream home while financially preparing for a secure future residing within it.