Are you considering building your dream home with custom home builders? If so, you may be wondering how you can save money throughout the building process without compromising on the quality of your home. In this article, we will provide you with 6 proven ways to save money on your custom home, allowing you to invest that money elsewhere in your home or have more in your pocket at the end of the building experience.
1. Choose a Builder Who Prioritizes Cost Savings
When selecting a custom home builder, it’s crucial to look closely at their value engineering processes. Are they already providing parts of the project at the lowest cost? Inspire Homes is a custom home builder with a value-engineered home building system, offering an affordable entry price, and giving you the flexibility to customize your home according to your own specifications and wishes.
Think of it like car improvements. You wouldn’t buy a Lexus and then strip away the luxurious interior and fine handling to make it into something different. It would make more sense to start with a Toyota Camry and then engineer and upgrade it to become a Toyota Highlander. Similarly, with custom home building, starting with a home that is already designed and engineered to be beautiful, functional, and high quality allows you to add your own preferences and upgrades without starting from scratch.
2. Utilize Instant Equity to Maximize Savings
Another effective way to save money on your custom home build is to properly utilize instant equity. By making a larger down payment, you can increase the equity in your home. Opting for a shorter loan term also helps build equity faster. Additionally, making affordable improvements to your custom home can increase its appraisal value and, consequently, your equity.
3. Offer Sweat Equity through DIY Projects
If you’re willing to put in some effort, offering sweat equity through do-it-yourself (DIY) projects can lead to significant cost savings. However, it’s essential to discuss this with your builder as each builder may have their own set of processes and allowances.
Most custom home owners are open to working with customers who want to provide their own labor to save money. There are certain projects they can source out to you, such as painting or tiling, as long as they can be done professionally and meet the municipality’s regulations. If you are a licensed contractor, they may even consider utilizing your skills for specific trade work.
However, there are some aspects of the home build that should be left to professionals to ensure the integrity of your home. These include foundation, MEPs (mechanical, electrical, plumbing), drywall, roofing, framing, cabinetry, and countertops.
4. Pay for Site Work at Cost or Do Some Yourself
Site work is an essential part of preparing your lot for home construction. It can involve tasks such as tree clearing, dirt work, and pad site grading. To save money on site work, it’s beneficial to find a builder who offers to assist with site development at cost.
Some custom home builders don’t mark up the site work. Instead, they help their customers gather quotes for things like wells, septic systems, or electrical runs and facilitate the work without including it in their scope of work. This way, the customers don’t pay markups on site work like they would when buying a house/lot combination. Additionally, if customers feel confident in their abilities, they may be able to do some of the site work themselves, further reducing costs.
5. Provide Your Own Design Materials
Certain design materials can be provided by homeowners themselves, allowing for cost savings. Some home builders are open to their customers providing materials such as light fixtures, appliances, specialty sinks, or front doors. However, it’s important to coordinate with their builders to ensure timely installation by their vendors.
By providing your own design materials, you have more control over the cost and can potentially save money on markups. Just ensure that any materials you provide meet the necessary quality and safety standards.
6. Prioritize Essential Projects and Save on Others
When building your custom home, it’s important to prioritize essential projects that are critical to the functionality and livability of your home. However, there may be some projects that can be delayed until later, allowing you to save money upfront.
Projects such as landscaping, installing a pool, adding a fence, or finishing out a bonus room are not essential from the beginning. By deferring these projects, you can allocate your resources more effectively during the initial home building phase. This approach allows you to manage your budget efficiently while still building your dream custom home.
Building a custom home doesn’t have to break the bank. By following these 6 proven ways to save money, you can keep your costs in check while still creating the home of your dreams. Choose a builder who prioritizes cost savings, utilizes instant equity, offers sweat equity through DIY projects, pays for site work at cost or lets you do some yourself or provide your own design materials, and prioritizes essential projects. With careful planning and consideration, you can build your dream home while staying within your budget.