What to be cautious of when building a new home
Home construction is an exciting project. However, headaches and heartaches transpire when you choose to cut corners. Over-saving and attempting to DIY may result in low quality work. Clearly, you want a home that’s perfect for you and your family. If building new seems frantic, then consider buying existing. But since building a new home has been your plan all along, we offer to help you manoeuvre the tricky aspects of home building. Keep an eye out for these hurdles.
Bad builders
Keep in mind the builder’s reputation. Ask around and Google your builder before you start the process. People are willing to share the experiences they and their friends had with a particular builder. If you talk to homeowners and get zero recommendations, consider looking at online reviews. No builder is perfect. So expect to see some bad reviews.
Project pitfalls
No house is ever built perfectly. Something can go wrong anytime in the process. Expecting eventualities reduces frustration. Visit the building often during construction and check whether things are going on smoothly. Make sure you know who you can talk to when something goes wrong. Stay in touch with the contractor for updates.
Interest rates
Quotes are not always fixed. Interest rates can increase thus affecting the cost of building. Luckily, rates are steady and low currently. But as the housing market and economy continue to grow, it’s possible they’ll go up. So ask your builder to give you a few estimates – one with the current rate and several others with slightly higher rates.
Base price vs. Actual price
There are costs for building and costs for upgrades. Upgrade costs depend on decisions you make about the home’s design. A builder may entice you with an amazing base price before you realise how much upgrades can increase the price of the house. Make sure you are aware of the hidden costs of building a new home.
Builder’s model
Beware of builders who advertise low home prices. Their models are often full of upgrades. These improvements add to the total cost, making the project even more expensive. “Budget” homes are not necessarily the best deal. So resist temptations of a low price. Make sure you go through the builder’s model to see which items are standard and which ones are add-ons.
Upgrade prices
Many builders indicate the base price, but hide info about upgrade costs. Therefore, make sure the builder gives you a comprehensive quote that covers everything you need. Revise the quote and exclude items that you don’t want. The estimate must be in writing.
Project timelines
Building a home is a big investment. Though the process is lengthy and tiresome, don’t rush it. Take things slowly. You don’t want to end up with a house that you hate. Aim to build a home you want, not one that’s just affordable. Visit model homes and multiple builders (e.g. Kookaburra Homes – builders) before you choose a design or floor plan.
Financing issues
Seek financing if you can’t afford to build. Commencing the project without enough money may lead to delays or halts. So make sure you can fund the process from start to finish. And pay the workers on time.