Rosalind Evans
Navigating New Home Costs
The dream of owning a newly built home can often come with unexpected financial burdens. As of February, the median sale price of new construction in the U.S. was recorded at $400,500 by the U.S. Census Bureau and the Department of Housing and Urban Development. However, savvy homebuyers can employ various strategies to manage and potentially reduce these costs significantly.
Understanding Price Factors in New Construction
The price of a new home isn’t just about the base cost; it’s about customization. “They want to know what kind of windows you want, flooring, siding, window panels, what kind of doors, where you want the outlets, what kind of light switches do you want. Depending on what you’re picking, they’re adding up the tab,” explained Veronica Fuentes, a wealth management advisor. Choices in finishes significantly affect the final price, making informed selections crucial for budget management.
Strategic Saving on Construction Costs
Experts like Angie Hicks, co-founder of Angi, suggest considering which elements of your new home can be added later. “Think about those elements that could be easily added at a later date,” Hicks advised. By deferring certain upgrades, homeowners can keep initial costs down and spread out expenses over time, which is especially useful given that homeowners spent an average of $13,667 on renovations in 2023.
Financial Planning for Home Customization
Choosing when and how to upgrade your home can make a big difference financially. For instance, focusing on essential structural elements initially and upgrading features like knobs, paint, or flooring later can be cost-effective. “I tell my clients to be very conservative,” Fuentes noted, highlighting the importance of strategic planning in home customization.
Smart Investments in Your New Home
Buying a new construction home requires a careful balancing act between desire and budget. By prioritizing essential structural elements and delaying some upgrades, buyers can make their new home both affordable and tailored to their tastes over time. As Fuentes and Hicks recommend, investing wisely and planning renovations in stages can lead to significant savings, turning the challenge of buying a newly built home into a rewarding investment.
