Build Your Own Home to Save Money in the Long Run

Oct 26th 2015 at 10:40 PM

Are you planning to upgrade to a new home? You have three options: (1) You can buy a ready-built house, (2) Have a ‘semicustom’ house built as part of a development, or (3) build a purely custom house designed and built exactly to your specifications.

Building a new home from scratch might sound like a daunting process, but if you do it right, you will actually save a lot of money in the long run. The biggest financial advantage of building your own home is that you get exactly what you want. This means that you don’t have to spend on extensive renovations down the road. By getting everything correctly the first time, you avoid future problems.

Newly built homes can also be more efficient than older, ready-built structures. They comply with the latest energy codes and can be outfitted with better heating, cooling, and ventilation systems. They are also superior in terms of insulation and air filtration. An efficient home is not only easier on the environment—it is also cheaper to maintain. You can expect lower utility bills.

Did you know that a new house can also be healthier? It is likely to have the toxic materials typically present in older homes, such as asbestos, mold, and lead paint. When you build your own home, you can equip it with Energy Star appliances and use more efficient plumbing fixtures, toilets, and electrical systems. You can even install or at least wire for technology upgrades in the future, such as solar or home automation.

To get the best value, be sure to choose the right builder. Check with the Better Business Bureau for any complaints on file. You should also take time to visit the homes that the builder has previously constructed and ask the occupants if the craftsmanship has so far stood up to use, time, and weather.

Also, it’s never a good idea to skip the inspection. Just because a house is newly constructed doesn’t mean it won’t have defects. To protect yourself, make the contract contingent on an inspection by an expert that you will hire. It’s also a good idea to have the house checked after each building phase, as this can make potential problems easier to see.

Finally, ask for warranties. Your newly built home should come with a warranty from the builder. They should commit to repair any major defect on the home’s structural integrity. Preferably, such a warranty is backed by insurance and explicitly lists what is and isn’t covered, as well as limitations. For peace of mind, you can consult a real estate attorney to review the warranty and protect your interest.

About the Author:

Alan Butcher is the managing director of Build 7, which provides a solution for home buyers to get the perfect dream home. The company provides a unique process that takes away the hassle and risk of building a new home.

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