New Construction of a house

Housing prices are rising in real estate markets around the country. Building a custom home or buying a newly constructed home from a developer can be even more expensive than purchasing an existing one.

Of course, having the patience to wait for a home to be built from the ground up can eliminate some of your buying competition. However, the increasing cost of construction materials and added value that comes with a new, move-in-ready property may outpace those savings. But that doesn’t mean you should rule out new construction or ignore tactics to keep the cost down.

1. Efficiency Upgrades

One of the most significant advantages of buying a newer home is that it will likely be much more energy-efficient than an older one. If you’re involved with the construction process, you may want to choose upgrades to maximize this fact. Since energy efficiency will save you money each month on your utility bills, an immediate investment can pay for itself over time and ultimately save you money in the long run.

2. Add a Roommate

Transitioning from renter to homeowner isn’t always easy. While it’s clearly a better path to building wealth, it does require a commitment to sound financial habits, and the increased costs can be intimidating. If you’re used to sharing your rental space with someone else, you may consider doing the same in your new home. The additional income will offset your investment and can make it easier to manage unexpected costs. New construction can also provide you with a choice of floorplan options that will best support a roommate arrangement.

3. DIY Finishes

Buyers of new construction can often fall into the trap of choosing expensive finishes or builder upgrades as the project progresses. The home’s original price can escalate quickly as above-average options or conveniences are added to the scope of work. If the budget is already tight, make a conscious effort to stick to the base-level features. Often, changes such as custom paint colors or cabinet hardware can be added yourself at a lower cost.

4. Stick to the Plan

Similarly, it’s important to be definitive about any choices you do make. Last-minute changes will be much more costly to implement. Once you and the builder have agreed to a plan, you must stick to it if you want to stay on time and on budget.

5. Completed, Not Custom

While having complete control over your new home’s look is tempting, it’s probably not the most affordable approach. If you’re set on buying a new build, a completed or nearly finished home from a developer may save you money over starting from scratch. You’ll get the same benefits of a move-in-ready home with more ability to negotiate the price.

New or old, start your search for the perfect home with the buyer resources on our website. Do you still have questions? Our expert agents are ready to take your call today.

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