Imagine owning a home that you have always wanted. It could have all the features you could ever want, and it could have special little details that make it stand out.
Building a home is an exciting and challenging endeavor. It can be very time-consuming and logistically challenging. To make the process easy for you, we are here with the ten things to remember when building your dream home.
Getting started on a home building project can be a bit overwhelming, especially if it’s your first time. Take a minute and visualize what your dream home would look like.
This step will help you create a unique vision of what it would look like. Imagine what your home would look like in terms of style, comfort, and features. Let us tell you how you will make your dream house come true. Here are the 10 things to remember when building your dream home.
1. Fix A Budget
While planning on your dream home, building a house budget shouldn’t be an issue. You will have to think and make a plan on how much you are going to spend on your home.
- The average price of building a home is about $30,000, says the National Association of Home Builders. But the price will depend on your dream. As you are thinking about building your dream home, the price would be more than average.
- Building your dream home is a little bit costly. It would normally cost around $100 to $250 per square footage. If you are planning on building a luxurious one, the cost will be around $250 to $450 per square foot.
- These estimates can be misleading sometimes. Because the cost of building a home depends on the location, material cost, design fees, closing costs, building permit, price of labor, etc.
- Taking these factors into consideration, we can say that building your dream home is more expensive than buying an existing one. But as you want to build your dream home, we suggest you build it as per your dream, not to buy an existing one.
The total cost of constructing a home depends on many things. It depends on the country or region you are from, labor costs, materials, and the choices that you make. These are the things to consider when building your house in the USA.
It would be better if you consulted a professional to learn how to build your dream home for a low price. Get some help from an architect, civil engineer, realtor, or house builder.
2. Make The Budget Realistic And Affordable
After getting advice from a qualified one, think about your budget. Make a list of everything that you will need to build your new home. The cost of materials and labor will take more than 75% of the total budget. You will also have to think about the cost of landscaping, décor, furniture, taxes, and fees, and a lot.
Be prepared for some extra expenses. Most of the homeowners will tell you that they went over their fixed budget while building their dream house.
Let us help you save some money. Here are some of the ideas:
- Research supplies– Try to get deals and quotes when it comes to materials, fixtures, and appliances.
- Make a smaller floor plan– The foundational work and the concrete slab are one of the most costly parts of making a new home. Try to cut down the cost of per square feet construction. You can keep the expenses in check by doing this.
- Minimize the moving cost– Moving to your new house will cost you a lot of money. Try to minimize the cost. You can spend that money on your new home. Spend that money on a special upgrade to your dream house.
- Tax credits– If you use energy-efficient materials, appliances, air conditioning, heating system, hot water heaters, you will get tax credits. Ask the local utility for a tax credit.
3. Get The Perfect Lender For Financing Your Dream Home
For paying the home construction cost and land fees, you will have to borrow funds. Search for a bank that will lend you money for construction.
Land loan
Land loans are used to buy lands. If your land has access to water, electricity, and roads, it will be an improved land loan. Because of not having any collateral on the land, you will need excellent crediting and down payment for approval.
Construction loan
These loans are higher-interest and short-term. Construction loans will pay for the land and new construction expenses.
Such loans include a higher risk for the lenders than the mortgage. Because banks can’t use your house as collateral, so for getting the approval, you will need a plan, timeline, and budget. These are the factors to consider when building a house.
4. Make A Balance Between Expectation And Reality
It’s easy to enlist everything that you want to add to your dream house. But the prices will stand in your way to fulfill your dream. So you will have to make some concessions. There are some things that can be neglected. And there are some other things that you can add later.
Things like smart home technology, granite countertops, and hardwood floors can be installed or upgraded later.
With so much advice on social media and home blogs, it’s so tough to find the perfect one. Don’t worry about other people’s house goals. Think about the things that are worth the hard work and investment. Let the experts tell you if you need a five-car garage or a gift wrapping room.
5. Pick The Right Team To Build Your Dream Home
With the right people, you can easily build your dream home. Someone may advise you to buy the land first and think about building later. But experts suggest that one should decide wisely before choosing the location first.
If you have already purchased a lot of inherited land, you should start with an architect. If not, then you should find a custom home builder first. Finding an architect first is an expensive decision. You can discuss your goals and find the right location by working with a builder.
6. Tips For Finding The Perfect Dream House Builder
Search online or in the local newspaper to find a builder. Make a list of reputable builders by doing some research.
Before choosing a builder, ask about their price ranges and the kinds of homes they build. Make sure to choose a buyer that you can afford.
You can talk with a reputable real estate agent or a general contractor for some help with references.
Before making a contract with buyers, ask about their experience. You may also ask if they are insured or licensed or how long they have been working?
Arrange an informal interview to meet the builder personally. Ask about their plan. If they work with an interior designer, ask them about the interior design and budget. You can get an idea about the preferred process, team, and timeline.
Find an architect as per your builder’s capabilities. He will provide the home design and the blueprint. Consult your builder before appointing an architect. Sometimes builders utilize their own architect to make designs and draw initial plans. In this way, you can get a design within your budget.
If you hire an architect on your own, it will be costly. But if you let your builder choose or utilize his own architect, it will cost you much less.
The first thing you should do is to hire the right builder. Then you will have to hire a realtor to handle the former home sale or lot purchases. For the closing, you will need a real estate attorney. Then to give you an excellent yard that will suit your new house, you will need a landscape architect.
7. Search For The Perfect Lot To Show Off Your Dream Home
After making the team, it’s time to search for land. Think about your preferred place to live. Find the best place to build a dream home. Do some research about the location.
Narrow down the options to make it easy for you. Check the land history personally. Also, check the comparable lots, development history, and purchasing history. All of this will help you formulate an offer.
Before choosing the location, make sure to consult with your builder. Because of what you see as an excellent flat lot, your builder might see a flood risk. A builder will find out if there’s enough place to accommodate your home, tree locations, water issues, or the lot slope.
8. Select A Suitable Architectural Design For Your Home
Whether you hire an architect on your own or through the builder, choose the design wisely. Select the design that matches your dream. You can not make every part of your home exciting. But you can witness your dream come true by choosing a design by yourself.
There are many preferred house style. You can choose to build a traditional farmhouse, craftsman, or modern home. If you have any confusion choosing the right style, then take a look at your neighborhood. You can take suggestions from a homeowner or the existing houses.
Find out which house plan matches your dream. These are the things to consider when designing a house.
You can present your ideas to the builder. You can do a little research online to choose a floor plan after deciding on the home style. Or you can tell your builder about your preferences to make a suitable floor plan. This is what you need to know before building your dream home.
9. Create A Timeline And Keep An Eye On The Construction Process
Don’t let HGTV fool you. Building your dream home is a time-consuming process. You will need a lot of patience. The U.S. Census Bureau says that a custom home will take an average of nine months to complete. This includes unexpected issues, supply shortages, bad weather, delay due to budget, inspection, construction, and obtaining permits.
The more custom you want to make your home, the longer it will take. If you have any issues with the time, choose a simple floor plan.
You have bought land, hired a team, got everything in place. Now it’s time to sit back and relax. No, you shouldn’t do that.
The person who cares the most about your dream home is you. So you have to make sure the home building process is running smoothly. We are not telling you to strap on a tool belt and stay on the construction site 24/7.
There are a few ways to make sure the building process is going according to the plan.
- Consult regularly with your builder.
- Check track spending and invoices
- Stick to your decision. If you change your mind suddenly, it will cost you some extra money.
- Make sure the progress follows your specification and is according to the plan. If you notice any fixing mistake, let your builder know immediately. They will take responsibility for the loss made by the sub-contractors or by their team.
- Make a note of the important things. You don’t have to write everything that’s going on. Just make sure to write down the important things for documentation.
10. Find Out Flexible Storage And Moving Solution
You will need a customized moving plan. Unexpected occurrences like inspections, timetable shifts, or bad weather will cause delays. These incidents will put your move-in schedule ahead or behind schedule. So ensure an adjustable storage space and moving solution. In this way, you will not feel stress or unnecessary rush.
Your new house may need some issues to be fixed. These issues will come as a surprise. A good builder will do a series of walk-throughs before and after you move in.
If you find any problem, let the builder know. Your builder will fix issues like door or window adjustments, paint touch-ups, or electricity line problems. Now you know how to build your dream home. Follow our tips for building your first home to make your dream come true.
Small Things That Get Forgotten When Building A House
- Door swing direction
- Shelf depth
- Attic storage
- Water heater placement
- Television placement
- Showerhead height
- Light, switches, and electrical outlets
- Energy efficiency
- Extra materials
10 Hidden Costs Of Building A House
- Design modification
- Wheelie bins
- Road closure fees
- Temporary site requirements
- Driveways
- Landscaping
- Flooring
- Land registration
- Site preparation costs
- Soil and contour testing
Frequently Asked Questions
- Why should I build a custom home?
To get exactly what you want, you will have to build a custom home. A custom home will ensure the best quality-design-cost value for your property. If you have any special styles, floor plans, must-have design features in mind, then you will not find them in a readymade home.
- What’s the best time to build your dream home?
It depends on the country that you live in. During the winter months, construction grinds to a halt in most of the parts of the USA. If you live in a place that is rainy like the Pacific Northwest, then you should build your dream home year-round.
- Should I live in an ADU while my dream home is under construction?
The ADU means an accessory dwelling unit. An ADU on your property will allow you a place to live. Before breaking ground on your dream home, you can live here rent-free and make some money from it. But, you have to pay to build two homes.
In this way, you may need to compromise with the quality of your dream home. We do not suggest you build an ADU by incurring the cost of labor and materials.
- Which is better, a custom-built house or a used house?
If you are planning on building your dream house, you shouldn’t compromise with anything. A used house will contain something that you don’t like. It will force you to compromise. But if you build your dream home, you can decorate every inch of your house as per your choice.
You can build spa bathrooms, open floor plans, extra dining room or living room, master bedroom, solar panels, laundry room, heated floors, messy kitchens, etc. You will not have to make any compromises with a custom-built house.
Final Words
It is an exciting journey to build your dream home from scratch. We hope these 10 things to remember when building your dream home will help you.
Follow our advice to make sure you live in your dream home that you have always cherished.