How Building a New Home Can Save You Money

Once you've invested the time and hard work to save up enough to be able to finally afford your dream home, you might find that you are faced with a lot of difficult choices about the real estate where you could potentially spend the rest of your life.

One of the most important of those choices is whether to buy a house or build one yourself. Here are a few reasons why building a house can be more cost effective than buying one.


Existing Home Renovation 
Because new homes are built with new materials, you probably won't have to spend a penny on systems renovations for a couple decades or more if you work with a quality builder. When you buy an older home built with older materials, you run the risk of investing in materials that may already be nearing the end of their shelf lives. Renovations are a regular part of buying pre-existing homes and can be often be a hidden cost that blindsides you when you least expect it. While there can be flaws in new construction, when you build your own home, you won't have to live with the constant fear that something might break down in your first five to ten years.

New Construction Warranty 
New homes in MN come with a home warranty often referred to as a 1-2-10 warranty. This warranty under Minnesota Statute 327A.02 will cover any defects in craftsmanship or structural integrity due to noncompliance with building standards and will usually keep you safe from having to pay for any repairs in the case that something does break down within the warranty time frames. Home warranties should be backed by insurance and should explicitly state damage and coverage limitations.

Energy Efficiency New homes often include more energy efficient building processes and features. Focusing on Insulation, Lighting upgrades, Appliances, Windows and Doors, Heating and Air, and Some Smart Home Devices will help you build a home with a low HERS Index Score. 

Allergies and Sensitivities 
For people that are sensitive to pets, dust and other allergens, building a new home can help you avoid the potential added expensive of cleaning duct work, upgrading air systems and tearing out carpet at an existing home. Keep in mind, there will be a lot of construction dust and dirt throughout your build so your new home will still need a thorough cleaning. 

Water and Sewer 
Another thing you may get to decide when you build your own house is whether or not to connect to city services such as water and sewer. Often, in more rural areas, it may be a better investment, in the long run, to dig your own well and septic tank instead of connecting to the city's services. If you are flexible about these two things, it could end up saving you in the future. Note: make sure there isn't a city plan that may force you to pay for a connection in the near future - this is usually costly and can affect your resale value.

Can you DIY? 
An important factor that could heavily influence your decision about whether to be your own contractor, hire a builder or buy a finished model is how much of a hands-on person you are... or aren't. And of course your financial situation.

If the details involved, knowledge needed, cash investment and time required in serving as your own general contractor doesn't scare you, building your own home is probably the right option for you. Labor is expensive. By using your own two hands in the construction process, you can save an arm and a leg on the construction costs. You might not be able to do all the work yourself, but being able to contribute your own manual labor toward even a few things here and there can help you save big. Hanging the drywall and other unlicensed work or even just drawing up the building plans are key parts of the process where you might be able to cut costs by rolling up your own sleeves. Although you may still pay a slight markup for the building materials, you will be paying a lot less for labor. NOTE: If you doing it yourself will be in poor workmanship, it's best to hire a professional and never do work without the proper permits.

Being your own general contractor gives you the power to decide what materials are used and which people are hired to install them. If you draw up your own floor plan, you may even be able to arrange the living spaces to be able to incorporate some of the furniture that you already own, which will save you from having to buy new pieces.

If you have affordable land, cash on hand and access to low cost labor, building your own home can sometimes be more affordable than buying a pre-existing house. Building instead of buying gives you control over the building process and the layout as well as peace of mind about the results. Due to the newer materials and the warranty, building your own home can also be safer and more environmentally conscious.

Have a home to sell before you build? Always remember to Call Sarah First!