How to Build a New Home without Dipping into the Red

49813048 - builders on construction siteThe real estate market thrives on the buying and selling of homes that have already been lived in, which has its benefits and drawbacks. When you buy a home from another family, you’re not in control of any elements of the home’s structure or amenities, and you’ll likely be forced to give up one thing you really wanted (a large laundry room) for something else (a deck and patio). Building a new, custom-built home is the best solution because it gives you complete control over your future home and makes your investment completely worth it. With that said, the path to building a custom home is also riddled with financial pitfalls that you definitely want to avoid.

Don’t Build Until Everything is Decided

Few things in life require more choices than building a custom home. From major decisions like the location and floor plan to smaller yet significant options including tile color and faucet design, you need to know exactly what you’re doing before you begin building. This will allow you to have an exact budget in place, rather than making new decisions each day and failing to realize how much extra money you’ve added to your final price.

Think Into the Future

It’s tempting to build the custom home that you want right now, but you need to consider your needs in the future. Sure, a 6,000 square foot house is impressive and luxurious, but in five years when your children head off to college, will you still want such an enormous house? The average cost per square foot to build in America is $105, so cutting even 500 feet from your floor plan will save you $50,000.

Also remember to consider the resale value. Whether you live in your home for 5 or 50 years, you will one day need to sell it or pass it on to your family. Keep this in mind as you make choices about your home; will a family in the future value this design and customization? Will it add value to the home down the road? In short, make sure your dream home isn’t someone else’s nightmare.