How Can I Save Money While Building A House with A Builder?
May 17, 2021
By: Carl E. Chapman
Buying a home is not cheap, in fact it is one of the biggest investments you will make in life. You have the choice of customizing your own home to your liking. There are a lot of things involved in the building of a new house, a major part of it is the final cost and if you have a control over that cost then you can build the house of your dream within the budget.
Here is how you can save money while building your dream house:
Fix a budget and stay on it:
Before selecting a builder, make sure to meet a financial advisor to know the amount of money you can spend based on your financial condition. While building a new house, it is very easy to spend more money than you intend to, so it is better to know how much you can spend and not to go over that budget.
Choose your builder sensibly:
Consult with more than one builder and compare their costing, building strategy and see whether they listen to your ideas or not. Choose the builder who agrees with your ideas and budget.
Ask for discounts:
To remain in business, contractors need to have a profit. Calculating labor, insurance, material, licence, and overhead expenses can be high. Often the price includes a 5-10% charge as a contingency budget and not using this budget can result in you saving some money. There is no harm in asking for a discount because every little bit will help you.
Ask for a Firm Fixed Price:
Firm fixed price (FFP) is the price fixed by the builder inclusive of all charges, which means that there will be no hidden charges. Preparing an FFP requires time and this ensures that the firm has reviewed your ideas and plans properly. Once you have agreed on the price, you cannot ask for any discounts and the builder cannot ask for additional charges.
Time of the year:
Construction cost depends on the time when you are building the house. The cheapest time to build a house is during early spring and late autumn. It is usually the most expensive in summer. This is caused by the slowing down of construction work during the cold weather. Therefore, companies work at a low price to keep the cash flowing and to pay their workers.
Research the appliances that you are installing:
The builders usually go for one or two contracted manufacturers for appliances such as heating, electricity and ventilation. This can cost you a fortune and exceed your budget. Therefore, you can look for lower cost options from other manufacturers and check in with your builder if they can accommodate your chosen appliances. You can save a lot of money by researching the appliances.
Do not pay unless you have received a service:
You should not pay your subcontractors until they have purchased a material or performed a service they are supposed to perform. If you pay the contractors before the work, chances are that they will not return to work or the work will not be up to your standards. It will be much better if you offer to buy the materials by yourself.
Work with professionals rather than family and friends:
Using family and friends in the business can sometimes be great but most people will end up charging you more. So, it is better not to risk your investment by working with someone who is not as fast or aware as a professional.
Paint and install by yourself:
If you can then you should take some of the work on yourself, such as, installing kitchen sinks and countertops, painting walls and installing lights and fans. This can save you some money as these services require charges if done by a professional.
Use standard options and upgrade later:
It is better to shop for designing features like lighting and windows by yourself than to choose from the limited options that your builder offers. Initially choose the standard options installed in your home and upgrade them later when you find great deals on secondhand stores or low-cost décor places. You can then sell the standard installations as an added bonus.
Do a proper breakdown of where and how much you are spending:
Before agreeing upon your final price of the construction, make sure you get a breakdown of all your prices so that you can see where every pound of money is going and you can make decisions about whether you need all these things or can cut off some.
Before thinking of constructing a new home you have to act as an attentive customer and think every aspect carefully in order to save money. Decide on the things you want and the things you need. New construction is not cheap but if you plan carefully then you will be able to complete the work of your dream house within your budget. Pay proper attention to where you are spending and do not go overboard for things you do not need or for the sake of convenience. If you do it right, then at the end of the day you will have your dream house and some money saved for new furniture or upgrades.