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It can be exciting to think about having a home built exactly the way you want it. But there are also some pitfalls to watch out for when building a home that you may not have experienced buying a pre-existing house.
If you’re considering building your next home, make sure to review these 5 common mistakes to avoid from realtor.com.
An incomplete contract
When having a home built, it’s prudent to work with a real estate agent or make sure a lawyer reviews your contract – paying special attention to the deliverable dates and costs – so you know what will happen if something goes wrong.
If this is your dream-home, the one you plan to retire in, make sure to keep your future self in mind when working through the design. Will you want to navigate steep or narrow stairwells, or schlep your laundry to the basement?
Neglecting the home inspection
Even though your home will be brand-new, it’s still important to hire a third-party, licensed home inspector to make sure your new home is problem-free and everything is up to code.
Discounting the ductwork
You might expect a new home would have energy-efficient ductwork and high-quality ductwork sealing and insulation, but it’s not necessary to meet code requirements, so it may be something you have to ask your builder for. High-quality, energy-efficient ductwork can save you money on energy costs down the road.
Expecting smooth sailing
Be warry of a tight timeline. Keep in mind that construction is at the mercy of Mother Nature, and a rainy season can cause building delays. You could save yourself some stress if you expect the project to take longer than projected.
One more point to keep in mind: When building a home, you can include things that are typically upgrades – the fancy appliances, high-end showerheads, and upgraded flooring – in your mortgage (which often means paying less interest than if you buy them later on your credit card). However, plan to meet with your mortgage lender to discuss your upgrades to make sure you’re staying within your approved loan amount. Sometimes too many upgrades raise a home’s price without raising its appraised value.
If you’re thinking about building a home, start by meeting with an experienced Bell Bank Mortgage lender you can trust to talk about how much home you can qualify for, and we can walk you through the process, from your construction loan to permanent home financing.