Tips To Save Money

Building Your New Home

Considering how fragile the economy is right now and how timid banks are to loan money for new home construction, it is no wonder that one of the most frequently asked questions from our customers is "How they can save money building their new home?" It wasn't that long ago when banks were "basically" giving out loans and the trend was to build large, extravagant homes. Today banks are less likely to fund new construction because of the high costs associated with new construction. The good news is that homeowners are now more apt to build smaller, greener and more affordable homes.

If you're set on building a new home there are still many ways you can keep your cost down, which will make the banks more likely to fund your project. Luckily for consumers, the prices of home building products are dramatically reduced as manufacturers compete during a down market. Our team of architects and designers would like to share their insight and experience on ways to help you save money while building your new home.

Here is a list of their top tips for saving money on new home construction:

• Buying the right piece of land could save you a lot of money when you build your new house. Before you buy your land make sure that the land can be built on without excessive expenses like blasting rock, access to drinking water and proper sewage treatment. Finding a suitable lot is becoming more difficult as areas continue to get more developed, which is why you should work closely with a trusted realtor.
• The type of house you select can be one of the easiest ways for you to save money. For example, it is generally more cost-effective to build a two-story home, rather than a ranch. You wouldn't think so, but if your take a 3,000 sq. ft. ranch plan versus a 3,000 sq. ft two-story home the ranch will have a foundation and roof that is twice the size of the two-story. Another benefit is that a two-story home can easily fit on a small or sloped lot. Also, take into consideration that choosing a basic rectangular house with simple rooflines and standard windows compared to an intricately detailed house can save you lots of money. By simply choosing a two-story house plan, you could save anywhere from $10,000 to $20,000 in construction costs without losing any livable space.
• It's all about square footage, because no matter how you slice it, every square footage you add to the footprint of your new home is going to cost you money. It affects every aspect of the construction from the foundation all the way to the final coat of paint. Our designers recommend finding a floor plan that has all the space you need and all the amenities you want. If you need to make changes, most small modifications can be done for a nominal cost.
• Being your own general contractor could save you a substantial amount of money, but this approach is only recommended for people who have extensive knowledge about the home building industry. If you are successful at being your own general contractor you could save as much as 5% to 10% on your new house.
• Using recycled building materials will help you save money and it's the green thing to do. Also, look for reduced price products like floor models, reconditioned or slightly damaged appliances and discontinued models and products (you can usually score big with discontinued flooring materials).
• If you feel that you are pretty handy, then ask your builder if there are any simple, safe construction tasks that you could do to reduce your costs like painting, cleaning or landscaping. By performing these simple tasks you could save thousands of dollars.
• Using as many green building products as possible will not only save you money on energy costs, but you'll enjoy many tax savings as well. Using certain ENERGY STAR® appliances, furnaces and air conditioning units could easily save you 10 to 20 percent of overall energy usage and operational costs to your home. No matter what kind of heating, ventilation, and air-conditioning system you have in your home, you can save money and increase your comfort by properly maintaining and purchasing the right energy efficient equipment.

	Purchasing an energy-efficient HVAC system alone will not have as great an impact on your energy bills as using the whole-house approach. By combining your system with appropriate insulation, air sealing, thermostat settings and common sense, you can cut your energy use for heating and cooling by up to 50%. When purchasing heating or cooling equipment, remember that high efficiency levels begin with ENERGY STAR®. Whether you're searching for a new heat pump, furnace, or other heating and cooling equipment, ENERGY STAR® has set energy efficiency specifications to help you save on energy bills and improve the comfort level in your home. Many of their products also qualify for tax credit.