10 Ways to Save Money on Your New Home Construction Project
What are some ways that small businesses can save money on their new home construction project? You’re probably asking yourself, why would I want to know this information? Isn’t it obvious that if you build your own home you’ll save a ton of money? Unfortunately not so much, but there are plenty of things you can do that will help keep your expenses down and still get the house you want. For example...
1) Use a local builder
Save Money on Your New Home Construction Project
Building your own house is a great way to save money. However, working with a local contractor can help you find a way to work within your budget and get what you want from your new home. Local builders also have access to more building material options, which can help reduce costs and provide more customization in your new home. If you're looking for tips and advice for small businesses, it makes sense to start locally by talking to others who have gone through a similar process.
2) Consider zoning changes
Before you call a real estate agent or sign your mortgage papers, make sure your new home is in an area that’s zoned for commercial use. The last thing you want is to discover too late that zoning issues will prevent you from opening your business. If there are any zoning changes needed, you’ll need to submit a plan and get permits—all of which can take weeks or months. To save money on a new home construction project, start planning ahead as soon as possible. Check with local city offices first and see if they offer an expedited permit service (and note whether there's an extra fee). You may even be able to get help from your city councilman or community development department.
3) Hire an experienced designer
Save Money on Your New Home Construction Project
4) Buy existing homes
Buying an existing home is a smart way for small businesses to save money and get into their new location with little hassle. And if you're planning renovations, buying a fixer-upper can be an inexpensive option. However, it's important to know what you are getting into before purchasing an existing property, as costs such as repair and renovation can add up quickly and surprise even the savviest of real estate investors. It may be cheaper upfront but that doesn't mean that it'll save you money in general. It depends on how much work needs to be done before you can move in; there are many variables involved in making such a decision so think it through carefully. How long do you plan to stay? What sort of return do you expect?
5) Choose your neighborhood wisely
Save Money on Your New Home Construction Project
6) Work with an experienced realtor
While finding an experienced realtor who can save you money sounds obvious, many people get so caught up in finding a house they love that they forget about all of their options. A few bucks more here and there may not sound like much, but over time it really adds up—and with low inventory (and increasing prices), odds are you’ll end up spending more than you need to. What’s more, working with an experienced realtor will make your move-in go a lot smoother, which is something we all want when moving into a new home. #1 suggestion: find an honest and dependable realtor that you trust! You'll be investing quite a bit of money into your new home... Why trust just anyone?
7) Negotiate hard
Save Money on Your New Home Construction Project
8) Set up a payment plan for large purchases
When you buy a home, there are many costs involved. Some of them—such as moving expenses, furniture and decorating—are one-time expenses that will affect your bottom line only once. Other costs are ongoing, such as property taxes and homeowner’s insurance. And while these costs can be difficult to budget for, they can also add up quickly. One of the most common ways people save money when buying a new home is by having their closing cost or down payment paid in installments rather than all at once. Talk with your lender about setting up an installment agreement that allows you to avoid taking out a high-interest loan right away; otherwise, you may end up paying back thousands more than you need to pay for your new home.
9) Compare your lender options
Save Money on Your New Home Construction Project
10) Get help from government programs
In an effort to preserve affordable housing and encourage homeownership, there are a number of government programs out there that provide tax credits and other incentives for those looking to buy a new home. For example, first-time homebuyers in San Francisco can receive up to $80,000 in down payment assistance (and other local governments offer similar programs). Beyond financial assistance, purchasing a new construction property also comes with valuable perks such as finishing and design flexibility. Take advantage of these opportunities by learning more about existing government programs at places like HUD.gov or your state’s department of commerce. Remember: you'll want to check which government incentives are offered in your area before applying!
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