Financial Mistakes To Avoid When Building A Home

March 27, 2018 2:33 pm

Building a home is a large financial commitment that takes a great deal of planning. As you make decisions concerning your new home, be sure to follow these guidelines to ensure you end up with a home you will love and that you don’t spend more than you planned on spending.

Make Contracts – Some contractors build based on invoices rather than contracts, which provides you no security if something goes wrong. Before breaking ground on your new home, work with a lawyer to ensure that a contract is in place with deliverable dates and costs so that you are protected if something goes awry.

Think of the Future – Most people build homes with the intention to live there for extended periods of time. If you plan to live there through your older age, consider building the home with limited mobility in mind to help avoid future renovations.

Conduct Inspections – Just because a home comes with a warranty does not mean that this should take the place of a home inspection. Make sure that you have a third party home inspector to look at your home before you move in.

Expect Delays – When building a home, delays are almost a guarantee. If you are building in the winter, you will likely experience delays from frost, frozen ground and snow. If you are building in the spring or summer, you may run into issues with rain. Make your timeline with delays in mind so you are not disappointed.

Consider Resale Value – Even if you never plan to sell the home and you plan to pass the home to descendants, assume that at some point it may be sold. Expect the unexpected and keep in mind that if you had to sell the home at some point, it may be best to have features that appeal to all types of buyers.

Visit the Home – Ask your builder when it is OK to visit the home during construction and make as many visits as possible to ensure that things are going as planned. If something is being done incorrectly, be sure to notify your builder so you do not end up having to pay to re-do it.

If you are interested in building a new home or purchasing a pre-existing home, I would love to talk with you about your financing options. Call me today to set up an appointment!

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