Staying on budget is important in every home, but staying on budget is critical in a new construction home. The cost of materials and labor can change dramatically depending on the time of year, so you’ll have to keep a close eye on your budget at all times. Luckily, there are ways to stay within your budget without compromising quality or style. In this blog post, we will discuss 6 ways that you can save money while still getting what you want for your new construction home!
1. Stay realistic with your budget
When setting up the initial plans for your new home it’s important to:
Avoid any delays in construction or unforeseen expenses, you’ll need to have a clear idea of how much money is coming in vs what’s going out. Just like with every other household budget, it’s important that you set up monthly savings accounts for ongoing costs such as insurance and maintenance so that you don’t have to take on a huge financial risk at the same time.
Staying realistic with your budget means that you’ll get an idea of what is available and what isn’t while avoiding spending more than necessary. You should always plan for construction costs as well as other expenses such as mortgage insurance and property taxes.
2. Shop around for the best prices on materials and labor
When looking at the cost of materials and labor, you’ll need to work with your builder to see what they offer. Not all builders are the same, so it’s important that you find someone who is willing to provide quality at a reasonable price point
- There are lots of ways for new construction homeowners to stay within their budget without sacrificing style or quality
- Make sure to work with your builder if you’re looking for quality materials and labor at a reasonable price point.
- It’s important that you stay realistic in your budget so it doesn’t get out of control!
3. Consider building a smaller home than you originally planned to save money
Size matters when it comes to new construction homes!
- Small home: $200,000-$250,000
- Large house:$400,000-500,00
The average cost of new construction in the USA is around $350 per square foot. This means that a small 1500 sq ft house would be about $450k and an average 3000 sq ft would be about $600k.
Cost per square foot: How much do you pay for each individual square foot of home? In general, the cost per sq ft will be about ~$350-$400 depending on location and size + what’s included in your new construction package (exterior paint/carpet/granite countertops)
*It’s important to consider the size and square footage if you want to stay on budget.
4. Buy used appliances, furniture, or cabinets instead of new ones to save money
- Buying used items is the best way to save money, and it can give your home a unique, personal feel
- Before buying be sure to thoroughly inspect them for damage or wear.
5. Plan ahead
- Buy things at the end of their life cycle when they’re cheaper so you can use them in your new construction home (e.g., light bulbs)
- Buy bulk items when they’re on sale, and store them for later use
- Plan your budget so you know how much money will be coming in vs. going out each month
- Identify any unexpected expenses that might come up during the construction process (e.g., permits) to avoid incurring debt or getting into a financial
6. Wait until next year’s tax refund season to make big purchases:
- If you wait until the end of tax season, you can often find discounts on high-end products
- If you are building a home with an unfinished basement, wait until next year to make any big furniture purchases for your living space as they will be less expensive when completed.
- If you’re planning ahead and want to save money in the future: appliances or landscaping will be eligible for deductions on taxes this year (keep receipts!)
If you’re looking to save money on your next construction project, these six tips should help. These budget-saving measures can be applied in any type of home renovation or building process–whether it’s a new build, adding onto an existing house, or renovating the basement. We hope this guide has been helpful and we wish you luck on staying within your budget!