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The U.S. construction industry boasts more than 680,000 employers and over 7,000,000 employees.
This $1.9 trillion industry is the reason why millions of Americans have a comfortable place to call home.
If you’re planning to hop on the bandwagon, this year presents the perfect opportunity to do so. Building a new home is both exciting and overwhelming at the same time, especially if you get the wrong people for the job.
Admittedly, you just don’t wake up in the morning and decide you want a new home. Any new home construction process requires a lot of planning, diligence, hard work, and a dash of patience.
If you’re planning to build your own home and have no clue on how to go about the entire process, don’t worry, you’re not alone. Most people building their first homes don’t know the first thing about building a home.
However, a bit of knowledge about the process will go a long way in making sure your dream home comes to life.
In today’s post, we’ll be highlighting nine must-know things everyone looking to build their first home should know.
1. Planning Is Everything
Planning is the most important aspect of any new home construction process. A concrete plan is a glue that holds the whole thing together and prevents everything from crumbling.
So, your first priority when building your home should be creating a solid and detailed plan. For your home to be natural and cozy, your planning must be meticulous and realistic.
A couple of things you need to consider during the planning phase include:
- In what direction will the sunlight hit the home?
- How will the general home flow be?
- How will people move inside your home?
- Where will you fix the lights and other electrical outlets?
- The master bedroom’s location?
- Whether you want skylights or large windows for the lighting?
Fortunately, there are a plethora of online tools that can help you with your house planning. Some of the most popular ones include Floorplanner and Roomsketcher, among others. Of course, you can always ask a professional to give you a hand, but most times, it isn’t necessary.
Remember to take as much time as you need with the planning. Rushing through the planning phase may have you making regrettable decisions. Remember, past a certain construction stage, there’s no going back with the initial plan.
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2. Budget for More Than You’d Expect
Everyone knows that new home construction is an expensive endeavor. That’s why most folks opt for new home construction loans to give them some financial reprieve.
Regardless of the type of financing for your new home, you still have to budget for the entire process.
Before the onset of construction, you’ll probably have a rough idea of how much the entire project will set you back.
You’ve probably done the math plus the estimations and calculations, but you need to budget for a little more.
You’ll find out sooner or later that the cost of constructing a new home is a little higher than what you initially expect.
There are plenty of unexpected costs that surface during the home construction process. Some of the extra costs include electric meters, gas, window coverings, and the like.
Budget for about 15% to 20% more than the contractor’s quote or use CostCertified to get a clear picture of the construction cost.
3. Your Schedule Is Only a Guideline
A lot of contractors are overly optimistic about how soon they can get the job done.
Most people building their homes also have their own timelines for when they expect the house to be completed. If you belong in this category, you best brace yourself for heartbreak.
Most construction projects rarely stick to their timeline. That’s because of plenty of factors like bad weather, delays, and other factors that may stretch the timeline.
It’s also the reason you need to look at your schedule as more of a guideline than an actual timeline.
4. Keep Your Future in Mind the Design Phase
Don’t design your house for the moment; instead, design it with the future in mind. Do you plan to have kids in the future? If yes, then make sure your house has enough rooms to accommodate all of them.
Also, build with resale in mind, especially if you think the house won’t be your permanent residence for a long time.
Consider the home’s resale value and find out what you need to do to enhance its resale value. However, don’t overdo the upgrades and make your home too expensive for the neighborhood’s average house value.
5. Get Your Funds in Order
As mentioned earlier, building a home can be very expensive, depending on the type of home you’re constructing. Most people opt for new home construction loans, which aren’t the same as mortgages.
With construction loans, lenders release a certain amount for the construction and then periodically pay the contractor when they see fit.
Since home construction loans are riskier than typical home loans, some lenders might ask for up to 20% deposits.
It’s also worth noting that the amount you’ll receive is usually the assumed value of the home after construction. Knowing the above should help you put your finances in order before the start of construction.
6. Pick the Right Building Contractor for Your New Home Construction
It’s never a good idea to take a chance with your home’s building contractor. That’s why you need to be super keen when picking out your new home’s contractor. Some of the factors you should consider include:
- Previous clients or portfolio
- Credibility and reputation
- References from friends and family
- Style of Work
- Price
However, don’t let price be your primary consideration when picking a contractor for your home. Most contractors that charge meager rates build substandard homes.
Good Luck with Your New Home
If you keep the above in mind, your new home construction should be a walk in the park. If you get your planning right and get the right professionals for the job, your new home is already halfway complete.
If you back down on building your home, you can learn about the new home-buying process and check out new construction homes near me.
For more informative content, check out other articles on the site.
