The process of building a new home involves six distinct steps. The first step is the home site preparation and excavation. The new home’s foundation is then set. These foundations may be a block, slab, or poured wall. The next two steps are customizing the design and choosing the location. Finally, the home is constructed. It is important to remember that new home construction may take up to a year to complete, so it is important to budget accordingly Construction Directory.
Costs
Costs of new home construction vary widely depending on the location, design and materials used. A basic three-bedroom home can cost as little as $200,000 while more elaborate homes can easily break the $300,000 mark. For a more accurate estimate, consult HomeAdvisor or other trusted construction resource. While many homeowners assume that the average cost of a new home will be less than $100,000, the truth is that prices will vary depending on a number of factors.
Additional structures can significantly increase a home’s cost, though not as much as you might expect. Fences, garages, and swimming pools can be quite expensive, and can easily cost between $2,000 and $48,000. The average cost for these additional structures is $4,280 after inflation. Porches, on the other hand, cost less than $1,500. Depending on the area and the size of your new home, the cost of a porch can be modest or extremely high.
Down Payment
A down payment for new home construction is a portion of the total cost of building a new home. This down payment is normally between 20 and 30 percent of the cost of the entire project. The amount you pay goes toward the total cost of the project and does not have to be repaid. The down payment is a way to protect yourself against price increases due to rising material costs. If you plan to use the money for home improvements, it may be beneficial to pay a little extra up front.
When you choose to pay this amount up front, be prepared to pay more upfront than you expected to. Unlike a traditional mortgage, this type of loan is not as widespread as others. When searching for one, check with local community banks or brokers. Some even advertise on the internet. In general, a mortgage lender will require that you have a down payment to qualify. Make sure you have a cushion for unexpected costs along the way.
Customization
The benefits of customizing your new home can’t be overstated. Customization of the floor plan, finishes, and features of your new home will appeal to the people living in it. Personalized homes are more desirable to potential buyers because they demonstrate the care that the owner put into the home. Plus, they will set your home apart from other homes in the neighborhood. For example, 91% of real estate agents agree that a home with hardwood flooring will sell for more than one without it.
In addition to creating unique homes, mass customization will also increase the efficiency of house production. Digitalization and automation technology can support the process. Despite the positive effects of industrialization and mass customization, there are still some areas of construction where mass customization is not yet widely used. In the meantime, mass customization has the potential to raise the level of automation in new home construction and other sectors of the economy. Here are a few examples of mass customization in new home construction.
Timing
A key factor to consider when deciding on the timing of new home construction is the type of house you want to build. For example, a standard floor plan with a few standard design choices will take less time to build than a customized home with unique structural and interior design features. Similarly, if you plan to add a second floor and choose an unorthodox location for the bathroom plumbing and wiring, the building time will be longer.
Although it’s tempting to hurry the process of building a new home, there are many pitfalls that can cause the timeline to go longer than it should. One of the top causes of delays is indecisive buyers who wait until the last minute to decide on design and materials. Some of these delays are completely avoidable if the timeframe is set up well in advance. Whether you’re moving in a month or two, you should consider the timeline to ensure that your new home is complete on time.
Contingencies
A key component to successful new home construction is the contingency budget line item. These funds are set aside to cover any unforeseen costs during the construction process. In addition to cost estimates, the bidding process plays a key role in the total project dollar amount. In addition to cost estimates, home builders use the Armchair Builder e-Store to create budgets for their projects, which include typical line items and their associated percentages.
The amount of this monetary allowance depends on the cost of construction materials and the complexity of the home’s design. In some cases, a contractor may require an additional 5-10% of the total construction budget for this contingency. However, a homeowner may only need this amount if unforeseen costs affect the overall cost of the construction project. This kind of contingency can help keep costs down while maintaining quality standards.
