When you’re preparing to build a new home, before you can get started, one of the first things that you need to do is sit down and estimate how much the entire project is going to cost. That way, you can establish a budget so that you don’t end up going into debt in the process.
If you would like to get some proven and helpful tips on how you can figure out some of your estimation costs, we’ve got five great recommendations that can make the construction process relatively easy and affordable below:
Compare your home to others. One way that you can prepare yourself for just how much your house is going to cost is to first compare it to newly-constructed houses that are close to your design. You should look at houses that are a similar size and style. You should also factor in the features that they have that are like the ones that you want as well. Then take the price of some of those homes, deduct what the price of the land is and then divide that amount by the square footage of the house. That will help you to know if the price of your home is comparable to the other houses that are like yours that are currently on the market.
Get several estimates. Before you hire a contractor to work on your housing project, in order to get the best rate possible, you need to meet with several different ones. It’s best that you speak with between 3-5 different ones, that you check out their portfolio and that you also request that they give you some referrals; preferably ones that are a lot like the kind of house that you want to have built.
Take site preparation into consideration. One of the reasons why a lot of people are looking into purchasing prefabricated homes is because aside from the fact that many of them are well-constructed and energy-efficient, they can also save you money if you are already going to have to spend a lot on site preparation costs. For instance, if you are planning to build your house on a piece of property that needs rocks to be blasted and trees to be cleared, that can end up to be pretty costly. That’s why, if you have yet to purchase some land, we recommend looking for property that is flat. When it comes to site preparation, it’s cheaper.
Speak with the contractor about “green” upgrades. One tip that we have that initially may cost a bit more money but is well worth it in the long run is to factor in some green upgrades to your home. This would include double-pane windows, low-flower showerheads and toilets in your bathrooms, a tankless water heater, some automatic faucets and also appliances that have the Energy Star label on them. By making your home energy efficient, it raises your property value as well as saves you money on energy costs—as much as 30-40 percent each year.
Source out your own materials. Say that your contractor also has connections to a crane company like Bigge which can ultimately save you money on some of your building costs. If you’re starting to get down to your last bit of money, be open to sourcing out some of your own materials such as your flooring and fixtures. By opting to purchase certain things yourself, it can save you a few extra dollars in the process. For more information on sourcing out your own materials, contact your local home improvement store.