When building a new home, there are many risks and potential pitfalls. From unexpected expenses to clashes over design choices, the construction process can be fraught with frustrations. However, the rewards of owning your own home far outweigh these challenges. In order to make this process as trouble-free as possible, it’s important to educate yourself about the ins and outs of homebuilding so that you can avoid costly mistakes along the way. Here are some common mistakes new home owners make during construction and how you can avoid them:
Choosing the wrong builder
Choosing the right builder will set the tone for the rest of your project. It’s important to interview prospective contractors and nail down a good working relationship with whoever is in charge. In addition to asking about their experience and portfolio of previous projects, ask about their business practices and how much they charge per square foot. The average cost of building a new home is $300 per square foot, although it can vary by region and other factors. You’ll also want to make sure that you have a good contract in place so there aren’t any nasty surprises down the road.
Not planning for contingencies
If something goes wrong during the construction process, your first thought might be to dispute the contractor’s invoice for the cost of fixing it. However, this is a bad idea. Contractors have insurance to cover these kinds of problems, so you’re really just throwing away money by refusing to pay. Instead, you should always plan for contingencies to cover these kinds of issues and have a written plan for how to proceed. If something goes wrong with the plumbing or the roof, for example, you should have a contingency plan in place for how you’ll repair it without disrupting the rest of the project.
Choosing the wrong materials
The materials you select for your new home can have a big impact on the overall cost. It’s not uncommon for the price of materials to increase by 10-15% during the construction process. This means that if you’re on the fence about which materials to use, you should go with whatever is the most cost-effective. You’ll also want to make sure that the materials you select are durable enough to last for many years. Straw, for example, is a popular material for indoor and outdoor furniture, but it’s not recommended for building a new home. Other things to consider when pricing materials are the brand name and the number of coats of paint/stain needed for each item.
Not having a plan for construction delays
Most construction projects run behind schedule, and there are a number of reasons why. When unexpected weather events occur or a key player on the team is injured, it can cause major delays. If you’re on a strict timeline and construction is running behind, you might feel pressured to rush through the process. However, you should always have a plan for dealing with potential delays in order to avoid major headaches. For example, you might need to pay extra for extra people to help with the project or have plans in place for how you’ll get the project completed on time without sacrificing quality.
Forgetting to budget for unexpected expenses
Every new home owner should set aside a certain percentage of their budget for unexpected expenses. This can include everything from property taxes to medical bills and utility bills. You’ll also want to budget for unexpected issues related to the construction process. For example, if you have to move nearby utility lines or have a sewer line break nearby, these costs will show up on your final bill.You should also have a rainy-day fund to cover unexpected expenses. This money can help you avoid a nasty credit card debt and is a good safety net in case something unexpected happens.
Not accounting for taxes, homeowner’s insurance, and other expenses
It’s important to account for taxes and other expenses related to homeownership in order to avoid running short on cash. For example, if you’re financing your new home, you’ll need to factor in the cost of a loan origination fee, property taxes, and other charges that add up to thousands of dollars. In addition to these expenses, you’ll also want to account for homeowner’s insurance when calculating your budget. Even if you carry comprehensive coverage through your auto or home insurance, you may want to take out a supplemental policy to cover the construction project. You can also consider setting up an escrow account to cover the cost of unexpected expenses.
Summing up
When building a new home, there are many risks and potential pitfalls. From unexpected expenses to clashes over design choices, the construction process can be fraught with frustrations. However, the rewards of owning your own home far outweigh these challenges. In order to make this process as trouble-free as possible, it’s important to educate yourself about the ins and outs of homebuilding so that you can avoid costly mistakes along the way. Here are some common mistakes new home owners make during construction and how you can avoid them: