Many dream of having a home that they helped create themselves. Yet, there
are a few financial mistakes that can occur when building a new home. Here are
some common dilemmas to avoid:
1. Be realistic
Set realistic standards for your home before you begin planning. You never want
hope for a $1,000,000 home when you can only afford a $200,000 home.
The building process will present challenges and being discouraged by costs and
other variables can make the process frustrating. Prioritize the features that you
must have, would like to have, and would consider not including.
2. Consider all the details before construction
The more you plan the details of your home, the better. You do not want to hold
up contractors because you haven’t decided minor details. To avoid this, know
more than the architectural plans. Determine the kind of flooring, tiles, wall
colors, cabinets, countertops, and all the other details that you want in your
home.
3. Think about the resale value
Even if you expect to never move from this home, still realize the uncertainty of
the future. Unforeseen circumstances might occur that would force you to sell
your home. So try to build a home that other buyers would like as well. Do not
over-build/under- build for your neighborhood or community. Also be aware
that extremely unique homes, like those will 4+ stories or those built
underground, usually have to be greatly discounted in order to attract a buyer.
4. Don’t forget about the extras
Remember that you are building your dream house. While you want to consider
the resale value, do not compromise on adding a few amenities. These amenities
will add additional costs but if you have always dreamed of window boxes on the
front of your house or a wine refrigerator in your kitchen, go for it! Also think
about the amenities that you will want 10 or 20 -years from now. Realistically, it
can be difficult to find the time and finances to add upgrades to a home a few
years after construction.
By Anna Hellman
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