Building a home is expensive. Stick-built homes are more expensive than modular homes, so an immediate way to save money is to choose modular homes. These homes are built in a factory and assembled on-site.
The homes are cheaper and often safer than a traditional construction.
But potential homeowners don’t want to drain their savings accounts or retirement accounts to build a home.
Money-saving ideas that new homeowners recommend are:
1. Take Bids for the Job
Bids are an essential part of the homebuilding process. The goal is to shop around after getting an estimate to build a home. The same process can be done with modular companies. Make sure that even if you’re required to work with a particular builder, ask if you have the option to make sure that the bid is fair.
Oftentimes, you’ll find that bids vary greatly with some being tens of thousands of dollars less or more than the competition.
2. Vet the Subcontractors and Ask for Recommendations
Construction companies often work with a variety of subcontractors that they offload particular parts of the building process to. For example, a contractor may hire another professional to do your:
Ask for recommendations and testimonials of the subcontractors that will be working on your home. If a plumbing contractor doesn’t have a good reputation, demand the contractor find the right sewer contractor for the job.
It’s better to get the job done right the first time rather than pay more in the future for repairs and to redo the work.
3. Downsize for a Smaller Footprint
Smaller homes cost less to construct. You can choose to build a 2,000 sqft home, but do you really need all of the space? If you downsize to a 1,500 sqft home, you’ll be saving 25% on your home’s cost which is substantial.
If you’re concerned about the home feeling cramped, open floorplans are best.
These floorplans open up the space, often connecting rooms, and make most homes feel lively in the process. If you’ve never had guests sleep over before, ask yourself if you really need that extra guest room.
4. Ask to Source Your Own Materials
Contractors aren’t in the business of helping you find the best price on materials. You can ask to source your materials. This means sourcing some materials, often:
- Water heater
You can often save several hundreds of dollars on the above items by sourcing them yourself. Just make sure that your builder is on the same page as you and allows you to source your materials.
Craigslist, Amazon and even Habitat for Humanity often has items that you can buy for a lot less than other outlets are selling them for.
You’ll also want to keep in mind that your home is one of the largest investments you’ll ever make. In the right market, you can build a home and have instant equity in it. What this means is that you’ll have a home, which may have cost $200,000 to build, that might be worth $240,000 when complete.
This is a great return on your investment especially when the home will continue to appreciate in value in the future.