Many dream of having a home that they helped create themselves. Yet, there

are a few financial mistakes that can occur when building a new home. Here are

some common dilemmas to avoid:

1. Be realistic

Set realistic standards for your home before you begin planning. You never want

hope for a $1,000,000 home when you can only afford a $200,000 home.

The building process will present challenges and being discouraged by costs and

other variables can make the process frustrating. Prioritize the features that you

must have, would like to have, and would consider not including.

2. Consider all the details before construction

The more you plan the details of your home, the better. You do not want to hold

up contractors because you haven’t decided minor details. To avoid this, know

more than the architectural plans. Determine the kind of flooring, tiles, wall

colors, cabinets, countertops, and all the other details that you want in your


3. Think about the resale value

Even if you expect to never move from this home, still realize the uncertainty of

the future. Unforeseen circumstances might occur that would force you to sell

your home. So try to build a home that other buyers would like as well. Do not

over-build/under- build for your neighborhood or community. Also be aware

that extremely unique homes, like those will 4+ stories or those built

underground, usually have to be greatly discounted in order to attract a buyer.

4. Don’t forget about the extras

Remember that you are building your dream house. While you want to consider

the resale value, do not compromise on adding a few amenities. These amenities

will add additional costs but if you have always dreamed of window boxes on the

front of your house or a wine refrigerator in your kitchen, go for it! Also think

about the amenities that you will want 10 or 20 -years from now. Realistically, it

can be difficult to find the time and finances to add upgrades to a home a few

years after construction.


By Anna Hellman

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