Building your own house is a great way to get a home that perfectly meets all of your needs. If it’s done right, you can build a home that you would never find in the housing market. If it’s done wrong, building your own home can be a expensive mistake that you will live to regret. If you are planning to build, here are four important factors that will get you in the home of your dreams:
Choose a Great Team to Build With
Working with a home builder who knows what he’s doing is the most important decision when building a home! If your home builder is making grand promises and giving you an unrealisticly small budget, it’s a red flag. If you’re willing to consider master planned communities for your future home, you have the benefit of walking through other houses the home builder has constructed and getting a feel for the quality of his work.
Unless you have extensive construction experience, you will need a general contractor to have a successful home construction project. A good general contractor knows the ins and outs of the construction business and will be able to avoid considerable pitfalls that a novice wouldn’t be aware of. Also, it’s not a bad idea to choose a contractor you mesh with; you’ll have to work closely with him while building.
Make a Realistic Budget
Building a new home is expensive. If you restrict your budget, you could end up running out of money if any unforeseen issues arise. When planning out a budget, you should plan to pay the builder about 18-20% of the cost of construction and land. A general contractor typically charges 15-20% of the project.
Location, Location, Location
If you want your home to be worth the investment, do your due diligence when you decide a location to build on. An area in a good school district is a valuable place to build, even if you do not have children who will be attending school. It will make a difference if you ever sell it; 91% of perspective home buyers said that the school district was one of the most important factors in buying a new home.
Finding a lot that has great retail in the area really increases the value of the property. Studies show that homes near a Starbucks increase in value by 65%; if you win the Starbucks lottery and they happen to put a store adjacent to your property, your home value is likely to double! Choosing a lot that you can foresee retail development around will make you a lot of money if you ever sell.
Building a home that has efficient heating and cooling will save you hundreds of dollars a year! Also, a home with a green certification label increases its reselling value by 9%.
Looking at open lots in master planned communities is an easy way to build an energy efficient home. Most master planned communities offer plans for modern homes with energy efficiency in mind. In fact, some master planned communities even include community solar panels or other energy generation to make them a self-sustaining community.