How to Save Money on a New  Home

Set a budget, and stick to it

Before you even meet with the developer’s sales representative you should be checking in with a financial advisor to find out how much you can afford to spend. As with any new home purchase, it’s awfully easy to spend more than you intended to. That’s why it’s important to know not just how much you want to spend, but how much you can. Once you have that number, think of it as written in stone, and don’t go over it – no matter how tempting.

Give yourself flexibility with the base price

The first price you’ll see on your new construction home is the base price. This number includes the basic structure and finishes, and often the lot cost and landscaping cost as well (if it doesn’t include the latter two variables, be sure to factor those in to what your base price

Choose your builder wisely

If you’re not dead set on living in a certain development, compare a few different builders in your area and choose the one that offers you the most for your money. Some builders offer lower or more inclusive base prices, more reasonable upgrades, and/or better incentives, so it makes sense to do a bit of research prior to choosing who you’re going to go with. Make sure to compare quality as well as cost, since none of the money that you spend should be going toward faulty or low-quality features and design.

Ask about closing cost incentives

You won’t pay for your new construction home until it’s move-in ready (minus the down payment, which you’ll pay early on for your contract and permits), but you’ll still want to start working with a lender as early as possible to ensure you’ll be good to go when closing time comes along. Some builders offer special incentives if you work with their preferred lenders – say, a couple thousand dollars off of closing costs – so it may make sense for you to contact those lenders first, and if you get a fair mortgage deal through them, go that route.

Go standard and upgrade later

When it comes to design features like lighting fixtures and window treatments, you’re usually better off shopping around for a deal than going with the limited options offered by your builder. Choose to have the standard options installed (which are already included in your base price), and then upgrade them within your budget later on

Spend where it counts

Not all upgrades are valued equally. You have to think in terms of not just what you want with the house, but what will get you a return on your investment later on. For example, it’s probably worth splurging a bit on taller cabinets and a deep-pour basement, but a 50 square foot bump out in the master bedroom is going to cost a lot more than it’s going to return

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