I understand the appeal of building a new home from scratch. You have a dream home in mind, and no existing home can quite measure up. Building from the ground, up allows you to intentionally create your floor plan and determine the best layout for you and your family.

It’s also a whole lot of work. I know. I’ve done it twice.

Is it worth it to build a home from scratch? That depends on you and your priorities.

Here are a few things I’ve learned:

1. Plan on spending at least another $50-100K on top of the contractor’s price.

Your contractor will likely give you a quote for a baseline home, and any upgrade you choose to make will be extra. That means if you want to invest in better plumbing, lighting, countertops, flooring, insulation, etc., you’ll be paying a little more. Even basic items like upgraded fixtures and hardware or extra outlets tend to add up. Be prepared for that.

2. Trust your gut.

You will want that extra light bulb in your closet and that extra couple inches of counter space. If you’re going to build your dream house, do it right. You’ll be disappointed if you compromise and end up remodeling a room just a few years after the house is complete. Get it right (or as close to “right” as you can) on the first go-around.

3. Be (very) involved with the process.

Although you’ll be working with an expert, the end result is yours and you need to own that. Check in regularly with your contractor and encourage him/her to ask you for your opinion whenever a decision needs to be made, even if the decision seems minor (cabinets eighteen inches above the counter or twenty?).

4. Invest in warranties

Building a home is a huge investment. Make sure you’re protected from any building defects with the appropriate warranties. Consult a real estate attorney to help with the process.

Remember: Building a home isn’t for everyone.

You’ll have to decide whether or not constructing a new home fits into your budget, timeline, and big-picture goals:

  • How particular are you about your future home’s layout? Is it possible that a pre-owned home can adequately fit your needs?
  • Will you be able to easily live someplace else while your home is being constructed?
  • Do you have the time and energy to throw yourself into a multi-month project (it takes an average of seven months to construct a new build)?
  • Do you plan on living in the same city for many more years? Or is it possible you will move in the near future?
  • Are you flexible enough to cope with unforeseen building snags or timeline changes?

Before you even start to research building contractors, take a moment to pause and check in with your financial advisor. It’s a good idea to approach the purchase of a new home realistically and, while there are many aspects to consider, the financial side of this decision is of utmost importance.

Let’s talk about your future home! Drop me a note and let’s set something up.

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