{"id":10664,"date":"2018-10-27T15:15:26","date_gmt":"2018-10-27T22:15:26","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=10664"},"modified":"2018-10-26T09:38:33","modified_gmt":"2018-10-26T16:38:33","slug":"new-construction-money-mistakes","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2018\/10\/new-construction-money-mistakes\/","title":{"rendered":"New Construction Budget Mistakes"},"content":{"rendered":"<p style=\"text-align: justify;\">Building your own home is an exercise in careful budgeting. Each and every dollar needs to be accounted for, or your build could get away from you. Still, even if you\u2019re careful with your budget, you might be making mistakes that cost you in the end. Maxing out your money might be less about choosing cheaper tile and more about managing your build with the future in mind. Don\u2019t make these mistakes or you could be paying for years to come.<\/p>\n<p style=\"text-align: justify;\"><strong>Ignore Resale Value<\/strong><br \/>\nMost families build custom homes because they want a specific end product. Unless you\u2019re building a home as an investment to sell, chances are you plan on spending years in your new place. But just because you don\u2019t plan on selling doesn\u2019t mean you won\u2019t. Changes in lifestyle, careers, and budget could result in needing to sell. If you designed and built your home only thinking of what appeals to you personally, it might be a hard sell. Distinct features you fell in love with could be dealbreakers for buyers. That\u2019s why it\u2019s best to add personality in less permanent ways. Remember, paint color is easy to change; bright yellow bathroom tile isn\u2019t.<\/p>\n<p style=\"text-align: justify;\"><strong>Borrow Your Max<\/strong><br \/>\nBuilding the house of your dreams means you have to be comfortable with spending money. But maxing out your mortgage on day one can cause you thousands in interest and stretch your budget too thin. The general rule of thumb for mortgages is that your housing costs (including HOA and any other fees) shouldn\u2019t exceed 28 percent of your total income. Just because your bank is willing to lend you more doesn\u2019t mean you should borrow the maximum amount. Make some concessions, borrow less, and you\u2019ll be glad for it.<\/p>\n<p style=\"text-align: justify;\"><strong>Not Negotiating<\/strong><br \/>\nBuilding a new home isn\u2019t like buying an existing one. Builders have their costs, so there\u2019s no room for negotiation, right? It\u2019s a common misconception in real estate, but it couldn\u2019t be farther from the truth. Builders have room for negotiation and agreeing to their price right away could cost you thousands. Whether you ask for a better price outright or negotiate for better incentives or allowances, don\u2019t accept that first price at face value.<\/p>\n<p style=\"text-align: justify;\"><strong>Forgetting Your Responsibilities<\/strong><br \/>\nUnless your builder agreed to finish the home and landscaping start to finish, there are parts of the build that are your responsibility. Usually, this includes things like minor landscaping (think laying sod or planting your garden) but it may also include sweat equity items, like painting or putting up trim. Whatever your responsibilities, don\u2019t forget to budget for them. The materials and labor won\u2019t be included in your builder\u2019s price and you\u2019ll need to pay for them out of pocket.<\/p>\n<p style=\"text-align: justify;\"><strong>Building Too Big<\/strong><br \/>\nA spacious home sounds like the American dream\u2013until it comes time to heat and cool it, that is. See, even if you have the money to build a large home, it might not be the most cost-effective option when it comes to paying for utilities and the day-to-day running of the place. Building bigger doesn\u2019t always mean building better. A good designer can create smart spaces that feel spacious without being too expensive for everyday living.<\/p>\n<p style=\"text-align: justify;\"><strong>Procrastinating Projects<\/strong><br \/>\nIt\u2019s an all-too-common way to save on a new build: just put off some of the finishes for another time. An unfinished basement seems like a money-saving tactic now, but it could cost you in the long run. It\u2019s much cheaper to pay for a finished basement when contractors are already there and purchasing materials in bulk. Procrastinate that project for a few years and you\u2019ll pay a premium for a contractor to purchase materials and come to your home specifically to work on your basement. If you have money in the budget and you know you want a finished basement (or completed deck, or landscaped backyard), have it done as part of the build process and save.<\/p>\n<p style=\"text-align: justify;\"><strong>Use Your Builder\u2019s Lender<\/strong><br \/>\nAlmost all builders have a \u201cpreferred lender,\u201d where they send most of their buyers. And, if that lender offers the best rates and incentives, they very well might be the best for the job. But it\u2019s always best to shop around for lenders that will offer the best rates, especially if you already have a lender you like. A builder might offer upgrades for using the preferred lender, so you can use that as a bargaining chip when negotiating rates or getting the best bang for you upgrade bucks. Remember, you\u2019ll have your lender for decades; it\u2019s best to make sure you work with one you trust.<\/p>\n<p style=\"text-align: justify;\">Trying to keep track of your build budget can have you wishing you\u2019d paid better attention in math class. But as you add up receipts and make choices, don\u2019t forget to keep the bigger picture in mind. Paying for a new home doesn\u2019t only happen during the build process, but for years to come after your move-in date. Make smart choices now and you\u2019ll be paid in peace of mind later.<\/p>\n<p><a href=\"https:\/\/freshome.com\/new-construction-money-mistakes\/\" target=\"_blank\" rel=\"noopener\">8 New Construction Money Mistakes That Could Cost You<\/a> by Jae Curtis | Freshome<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Building your own home is an exercise in careful budgeting. Each and every dollar needs to be accounted for, or your build could get away from you. Still, even if &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2018\/10\/new-construction-money-mistakes\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-10664","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New Construction Budget Mistakes &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2018\/10\/new-construction-money-mistakes\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"New Construction Budget Mistakes &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Building your own home is an exercise in careful budgeting. 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