Don’t let building your dream home turn into a nightmare.
RE/MAX shares 3 valuable tips to get the most house at a price you can afford:
First and foremost, determine your cost before you start so you can avoid getting sticker shock when it’s time to move in. Hold off adding all the bells and whistles until you know your total numbers. Get an estimate before you break ground and look at the following costs:
- Materials. Many factors go into the cost, which can vary according to where you are building, the demand for your materials, and even logging restrictions, says RE/MAX.
- Labor. Again, it depends on where you are building. This can be affected by unemployment in the area, and whether there is much construction going on, which would make it harder to get laborers if things are booming.
- Government regulations. Check state and local regulations, which could place restrictions on your home building project.
- Your personal preferences, which could drive up the cost.
Second, advises RE/MAX, determine how big a mortgage payment you can afford, and calculate how much house that will get you. Then ire a contractor, who who also designs homes, who can tell you what amenities you will be able to include based on the square footage and number of bedrooms you want. Building experts note that you should figure another 10 percent into that budget to cover cost overruns.
Third, determine your cost estimate before you break ground, which you will need in order to get a loan. Consulting an architect for basic information doesn’t have to be as expensive as you might think, and they can often offer you valuable information about how much your home will likely plus share money-saving ideas. Otherwise, get bids from three builders. RE/MAX advises taking a photo of an existing house you like and getting a ballpark figure based on that.
RE/MAX Real Estate Concepts
120 N 2nd Avenue West
Newton, IA 50208