Now is a great time to purchase a home. 20 years ago, your only affordable option for a new home would be to choose from dozens of subdivision houses that all looked the same. Not only are those copy-n'-paste designs dull and uninspiring, their primary purpose is to save on construction costs, not to fulfill residents' needs. Custom homes are not a new phenomenon, but they are much more accessible and affordable for more people. The possibilities for custom homes are more diverse and vast than ever before, and you can enjoy the home you've always wanted if you and your spouse plan for it carefully. Here are three common custom home-building mistakes that you should watch out for.
Mistake #1: Paying Upfront and In-Full
You and your contractor may have agreed on the cost of the project, but he may request to be paid upfront as opposed to after the work has been done. After all, before he gets paid, every builder spends a large amount of money to acquire supplies, materials, tools, and to pay the crew for their labor. Still, you need more information before you should agree on early payment.
It is reasonable for contractors to request payment to purchase supplies and other materials needed to satisfy the cost of labor, but don't write your contractor a check without auditing the expenses first. Have your contractor explain the expenses, and you will add up the costs together. Then, write a check in the amount sufficient for the tools, supplies, and materials, and make it out to your contractor's supplier.
Mistake #2: Choosing the Lowest Bidder
Hiring the most affordable contractor may seem like a thrifty and wise money saving tactic, but it could come back to haunt you later. Near the end of the project, your contractor may point out some problems that need correcting, which will require more payment on your part. Though it is a reasonable expense, some contractors use that tactic as an excuse to extract money for nothing more than to keep. The contractors that do this most are those that bid the lowest expense possible to secure work, not being able to find clients through a solid reputation, portfolio, or duration of experience.
Mistake #3: Not Including Agreed Features In the Contract
After signing the contract, you may find that some things the contractor is supposed to build is not included in the written agreement. After a while, you may notice that your contractor intentionally left out those said features. When you request he add them, he may require extra payment, explaining that the work costs more at that stage of the project. For avoiding unnecessary costs from misunderstandings, you can never be too thorough or careful during the contract negotiation phase.
As long as you are careful with construction costs, the contractor vetting process, and the project contract, then you'll get an affordable version of your dream home. For more information, contact Harsevoort John & Son Construction or a similar company.