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

            Designing a new home is an exciting but expensive process. However, if you hire an experienced designer, it can actually save you money. A good design will lead to a more efficient and streamlined construction project. The best designers are also skilled at implementing practical ideas that cut costs without sacrificing aesthetics or comfort (like built-in storage). For small businesses and individuals looking for a new home, enlisting professional help at every step of the process is worth saving money in other areas, like materials and labor.

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

            When you’re looking for a new home, it’s easy to get caught up in fantasies about fixer-uppers and getting a deal. However, if you plan ahead and work with an experienced realtor, you can buy or build your dream home at full price without regretting it later. In fact, working with an experienced realtor can actually save you money. A good one will guide you through all of your financing options so that you don’t end up spending unnecessary fees and interest or fall victim to predatory lenders. Plus, their familiarity with area construction project is invaluable when shopping for new homes.

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

            When you're planning a home construction project, it's easy to get excited about your vision and just start building. That's not always a good idea, though: unless you want to be paying for your new home years from now, you'll need a plan for making timely payments. If you don't have enough cash at hand—or if there isn't enough time in between other major purchases—you might consider setting up a payment plan with your bank. Depending on how soon you need that new kitchen or backyard patio, as well as what other debts are outstanding, you may be able to spread out all payments over two or three years.

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

            Lenders for home improvement loans usually differ based on rates, fees and their own approval standards. As with any loan, check into your options before jumping in with one lender. Before you get started, it’s a good idea to learn more about what each type of lender offers. Consider using online comparison sites or reaching out to friends and family for advice when making a decision. Also, be sure you understand what’s involved with different kinds of loans so you don’t end up in over your head—or underwater—once construction begins.

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!