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Owning a home is a pillar of the American dream, but buying one that is ready to go can be prohibitively expensive. Home prices swelled by 16.9% in 2021, the highest on record. Though we can expect interest rates to heat up and cause a slight cooldown in the market, that doesn’t mean houses will become more affordable or even less expensive. In fact, home prices could keep rising by as much as 12%, according to some forecasters.
See: Pros and Cons of Locking Your Mortgage Rate
Learn: 6 Vital Questions for Buyers To Ask a Home Inspector
To cut costs and to see their dream home fully realized, one may turn to the method of building their own house. If you have the time and the resources, creating your own domicile from scratch could be the most budget-friendly path. But builder beware — constructing a home from the ground up isn’t without its expensive caveats.
Avoid these common financial pitfalls by planning ahead, doing your homework and investing in extra help when needed.
Not Using a Licensed Architect
“Building your own home without an expert architect leading each infrastructure, design and construction phases from start to finish is akin to flying around the world without a trained pilot,” said Baron Christopher Hanson of Echo Fine Properties.
“Style, creativity and paint colors aside, professional architectural drawings are the primary roadmap and expert order of operations required to complete your new home’s build on time, on budget, and according to strict materials and mathematical planning. What’s more, architects know how to help hire qualified general contractors, niche contractors and artisans capable of doing every little project on time, on budget, and perfectly executed every time,” Hanson added.
Be sure to research licensed architects and/or reputable home construction companies before you begin any project.
Not Getting Everything From Your Local Government in Writing First
“Yet another reason why you must use an experienced local architect is because they know every crooked clown on your local town payroll, and how to get all the exact building codes, tax costs and construction quirks exactly right and in writing upfront before construction begins,” Hanson said.
“People who don’t get 100% of everything in writing from their local government upfront first — before breaking ground — soon find themselves surrounded by local officials smiling all the way to their banks.”
Related: 10 Hidden Costs of Buying a House
Building Too Big
Bigger isn’t always better — at least, not when you’re building your own home.
“The average cost of constructing a custom home in the United …….
Source: https://www.gobankingrates.com/saving-money/home/financial-pitfalls-building-new-home/