Steer Clear Of These Financial Mistakes When Building A NEW Construction Home

No matter how much you love your current home, if you didn’t purchase it as a new construction you may have wondered what was that builder thinking when they put this here... or why didn’t they put this there?  Some homeowners choose to hire a builder who will build them a custom home that will meet all their needs.  If you are contemplating building your own custom home steer clear of these common financial mistakes.

Clear Floor Plans- Before the builder starts your home you need to have a clear set of floor plans and all the details in place.  You may think you know exactly what you want in your new home, but there are a lot of decisions that need to be made when it comes to building a home from the ground up and all of those decisions should be made before the building process starts. If a builder is delayed because they are waiting for you to make a decision on something it will cost you.

Don’t overdo it- Bigger isn’t always better. You may feel cramped in your current home and think you need a lot more room in your new home to make it not feel as cramped, but don’t overdo it.  Consider the future when building. Do you have children who will be leaving the nest in the next ten years and a big home will feel empty once they are gone?  Will you sell your dream home or stay in an oversized home?  Keep in mind, the larger the home the more expensive it will be and the more you have to clean.

Resale Value- Whether or not you think this is going to be your “forever home,” assume that one day it will be sold.  There really is no way to say where we will be with our life in 10 or 15 years. This doesn’t mean you shouldn’t build your dream home the way you want it, but just don’t go crazy with things that will make it a nightmare if it needs to be resold.

Affordable Mortgage- You can always make changes and add things to the home at a later date, there is no reason to risk not being able to afford your mortgage to have all the bells and whistles right now. Set a budget and stick with it and keep your monthly mortgage payment at a reasonable price that you can easily afford.

Foregoing Amenities- While it’s important to keep your monthly mortgage at a reasonable rate that doesn’t mean you should forgo all the extra amenities you want in your home. If they won’t raise your monthly mortgage payment beyond a comfortable level, add them. Add those upgrades now if you can afford it.

Building your own custom home can be a wonderful experience and stressful at the same time.  The Silva Group has a close working relationship with many builders in the area and we would be happy to connect you with them. Contact us today to see how we can help.