4 Tips to Help You Figure Out the Cost of Building a New House

If you are going to build a new home, you may be wondering how much it would cost you. This is a difficult question to answer as there are a lot of factors to take into account when figuring out the construction cost. Therefore, let’s take a look at 4 tips that can help you estimate the cost.

1. Determine Your Floor Plans

First of all, you should put together a floor plan. Some builders offer a lot of floor plans for their clients. Based on these plans, you can determine the quality, features, style and size you desire. This will help you lay out the base of the project.

Your next move is to look for the right builder. Make sure you work with an experienced builder. This is important for proper budget, timeline and execution of the build. With their assistance, you can calculate the cost to build a house.

2. Figure out the Costs Per Square Foot

It may not be realistic to figure out the exact construction cost, but you can get a ballpark idea. For this, you should get the total figure and then divide it by the number of square feet. Let’s take an example. Suppose your home measures 2,000 square feet, and the total cost of construction is $350,000. Now, you need to divide this amount by 2,000 to get a figure of $175.

3. Consider the features, Style, and Quality

The total cost of construction won’t depend upon the size only. You also need to consider the features, quality and style when making your calculations.

Style

Style determines the architecture of the building. If the available space is a square or rectangle, the construction cost will be less.

Quality

Quality depends upon the materials used for the construction. This may include a lot of choices, such as windows, doors, appliances, built-ins, cabinetry, shingles, insulation, paint and flooring, to name a few.

Features

Features include design factors like staircases, roof pitches, and vaulted ceilings. These additions are important and can have a great impact on the price tag of your new house.

4. Additional Construction Costs

While figuring out the cost, don’t forget to consider the primary expenses. Often, these are overlooked by many people. Given below are some of the most common ones.

Site Preparation

Site preparation involves clearing many trees and removing large rocks, for instance.

Permit Fees

Local restrictions, zoning laws and building costs should be obtained as well. Based on the area, know that these permits can cost a lot of money.

Time of Year

Time of year can also has an impact on the construction cost. When the cost of labor is high due to economic growth of low unemployment, the construction costs are higher. Therefore, you should consider this point when making your calculations.

Long story short, if you want to have an estimate of the total cost of your new house, we suggest that you follow these 4 tips. Hope this helps.

Tips to Cut Expenses During New Home Construction

Every second earning person carries this dream of building a house in the future. For this, they start saving since very early in their life. However, sometimes, the saved money is not enough to build a dream space. At this place, they severely need an idea to cut costs during a new construction.

Cost cutting will enable the person to have an affordably built house and bear the expenses of one of the new home builders.

Let us see how to enable cost cutting in new home construction.

  1. Prepare an early budget:

When you start planning the budget early, you have the time to include and seclude certain necessary and unnecessary things. You can add the important things like plumbing, HVAC installation, electrical work, and furniture work, and leave the unimportant things like the interior etc. for later.

  1. Research the market and prepare the estimate:

Before you actually go to a new home builder, make sure you have researched the market for the price of materials, tools, etc. This way a builder will not be able to cheat you. Also, this way, you will be able to follow the point number 1.

  1. Keep the design of house simple:

When you go for complex design, the price of overall projects starts increasing. Therefore, to cut the cost, keep simple design and stick to the rectangular platform. Also, avoid complicated roof-line and keep the ceiling simple.

  1. Choose energy efficient lighting:

To invest less in energy, choose energy-efficient solutions. The list may include the appliances, HVAC system, solar lights, LEDs, etc. Also, make sure you choose star-rated products only.

  1. Choose quality material, but at an affordable price:

Building materials are touching sky height and therefore, research for the materials and contact a good dealer. A good dealer will provide all the materials at affordable prices and thus, it will cut the overall cost of the budget.

  1. Used materials which are recycled:

To cut the major cost of the project, you can use the recycled materials that are not only pocket-friendly but earth-friendly. The recycled products are cement composites, recycled steel, sawdust and a lot more. You can also use recycled plumbing fixtures, fireplace fixture, window lumber, etc. Although in new home construction, you would love to add first-hand items, yet what a big deal if you save and still get the best.

  1. Start small and build tall:

In the starting, start small and build rooms which are most needed. There is no need to include guest rooms, etc. A small project will cut impeccable cost and enable you to have your dream house. Also, rather than expanding the area of the house, expand the height. The tall building will have smaller roof and foundation, thus cutting the cost of the budget.

So, these were some of the tips with which you can save the overall cost of your new home project. Also, for more ideas, consult the best home advisor.

What is Home Downsizing?

Exactly what does the term “Home Downsizing” mean? Most likely it will mean different things to different people. Some definitions we have seen include:

  • Selling off excess personal property in order to make more room.
  • Moving into a smaller, more manageable home.
  • Cashing in on personal property investment
  • Reducing the mortgage payment and living expenses.

Perhaps the simplest definition of Home Downsizing is “Making do with less”. It means shedding off all of the excess baggage that you have in your life including expenses, personal property, collections, or junk…and living a simpler, less complicated life.

If you are considering a major downsizing or move in the near future, you’re not alone. In fact, a significant portion of Americans 50-75+ are downsizing today. And why not? More than likely one or more of the following statements will apply to you:

  • Your children are grown and gone.
  • Your home has become an empty nest.
  • You are retired, or getting ready to retire.
  • You are ready to move nearer, or to live with, your children.
  • You live in a home larger than you now need.
  • The housework and yard are becoming too difficult to maintain.
  • You are simply tired of the house and yard work and would prefer to spend your free time doing something else, such as traveling.
  • Increased taxes and carrying costs are just becoming too much of a burden.
  • You’ve lost a spouse or partner and are now living alone.
  • You are ready to move to your shore house, mountain home, lake house, or otherwise smaller dream house.
  • You would prefer to live in a year-round warmer climate.
  • You are ready to tap into the home equity you have built up.

The reasons for downsizing are many. Each person’s life tells a different story, but many of us have reached the same point in our lives. What we are seeing is the “Grayification” of America, and an entire generation who is getting older, who is ready to downsize, and who is ready to move on to their next phase in life.

Consider this:

  • Between 2010-2030 the number of Americans age 65+ will more than double to 70,000,000. (Delaware Valley Regional Planning Council).
  • In Philadelphia alone 1-in-5 Philadelphians will be 65+ by 2025 (same source).

Never lose sight of the fact that “Downsizing” is usually about the money. When a business “Downsizes”, it lays off staff in order to reduce expenses. It divests itself of resources no longer needed and it cuts the fat, all in an attempt to increase operating efficiency.

“Home Downsizing” is no different. When you “Downsize” your home, you are basically seeking to reduce expenses, divest yourself of resources no longer needed, and cut the fat, all in order to increase your household’s operating efficiency.

The ultimate objective of Home Downsizing for many is to increase the operating efficiency in your life, thereby giving you more money, with less work, and more time to do the things that you want to do.

Home Downsizing Tips & Strategies

Home Downsizing means different things to different people. What does it mean to you? What are three things that you would like to accomplish once your Home Downsizing phase is complete?

  • 1. ___________________________________________________________
  • 2. _____________________________________________________________
  • 3. _____________________________________________________________

Home Downsizing is similar to Business Downsizing in that its objective is to increase operating efficiency by cutting expense. Home Downsizing is usually about he money. How much can you save by downsizing your home?

Understanding Home Mortgage Loans

The price of houses keeps rising across the US. Since most require a down payment that is more than a renter can afford, how do you become a home owner when you don’t have the savings to cover the down payment? The answer is a home mortgage to purchase your house.

A home mortgage is different from a home loan. A mortgage is a contact that is required for you to obtain a loan from a banking institution or lending company. The actual loan is the money the lender provides.

In recent years, the types of mortgages for the home that are available to the public have increased dramatically. I remember purchasing my first home when most loans required a twenty percent down payment. Today, loan terms and the rate status are different with home mortgages and is applied depending on the financial situation at the time of the loan. Some mortgages offer better terms when the interest rates are low and others rise with high mortgage rates.

With a fixed rate mortgage, the interest rate remains the same for the duration of the loan. Therefore, your monthly payment remains the same, even when interest rates rise. This type of home mortgage usually extends for a term of 15 or 30 years.

The amortization period for 30-year fixed rate mortgages is longer and the monthly payments are lower. Although you can borrow money on a long-term basis, it comes with a high interest bill and builds equity very slowly.

With a 15-year fixed rate home mortgage, the amortization period is shorter allowing equity to build quickly with interest bills much lower. Expect to pay higher monthly payments with this type of home mortgage loan period.

Adjustable rate home mortgages have lower interest rates. Keep in mind, this low interest rate is only for a short time. Usually after the first year, the new interest rate will rise or fall, depending on the movement of the lending company’s prime rate.

If you’re considering an adjustable rate home mortgage, make sure the interest rate is low enough to be an advantage. Your monthly payment will remain low when the interest rate is low, but when interest rates rise, you may be left with a monthly payment you are unable or unwilling to pay.

Once you’re in the home of your desire, your property begins to accumulate equity with the rise in home prices. If you find yourself in need of quick cash, you can always take out the equity with a home equity loan. The home mortgage rates for home equity loans have always been thought to be higher than the home mortgage rates of other loan types. If you plan to stay in the home for many years, this may be a good option for you, otherwise don’t sacrifice the equity unless you absolutely must.

Once you understand the types of home mortgages that are available, you will need to decide what you must have in your new home and what you consider as an “extra.” You’ll want to find the best interest rate, but you’ll also find that homes in your price range may not include everything you want. So be prepared to negotiate and willing to sacrifice if you find a great deal. Once you’re in your home, you can always upgrade in a few years, using the equity you’ve built up in your property.

Considering Selling Your Home Without a Real Estate Agent? Understand Your Legal Needs!

As real estate has changed over the past few years many people are trying to sell their homes without a real estate agent in order to avoid paying a commission. In the United States you typically pay an agent 6 percent of the sale price in commission. With the price of homes today this number is significant. Especially since so many homes in the US have lost value and many homeowners have found they own a home that is not worth what they originally paid for it.

When not using an agent many residents will seek out the help of FSBO (for sale by owner) organizations and websites. These marketing tools still require a fee but the most it would be is 3 percent of the sale price and many are considerably less.

Real estate agents would also point out that by paying them a fee you are also gaining access to a number of resources that they have available to them. When selling a property agents will also invest in advertising to aid in selling the home.

Many people believe the commission paid to an agent is well worth it. However if you do decide to try and sell your home alone it is important to contact a real estate attorney who can help you navigate the legal aspects selling property.

The legal needs of a home sale include:

Purchase and Sale Agreement: This document is one of the many legal aspects involved when buying and selling property that will require an attorney.

Title Search and Clearing: Before finalizing a real estate agreement you want to be sure the title is clear. A lawyer will do the required title search and make sure the title is clear and the property is ready to be sold.

Litigation: There are instances where property ownership issues arise at the time of a sale. This could be a boundary dispute or eminent domain issue. You will want a qualified attorney working with you if you run into one of these problems.

Condo Development: Condominiums require legal documentation that is unlike any other property. Real estate attorneys are well versed in the legal requirements of condominiums and can help ensure the process moves smoothly.

Document Preparation and Review: If you are buying or selling a home you want to make sure all the documentation is complete and done correctly. It is the job of your real estate attorney to review all deeds, notes and any other documentation that is involved in a home sale.

The investment in a real estate attorney is an important addition to any home selling strategy. Buying or selling something as valuable as a home is a daunting prospect. If you plan to try and do it alone make sure you hire a real estate attorney to help supplement your sale strategy. The legal fees are a small price to pay to avoid a commission.