Here’s How to Avoid Costly Mistakes while Building a New Home

Posted on: Aug 24, 2022 | | Written by:

Here’s How to Avoid Costly Mistakes while Building a New Home

Every homeowner has to renovate their home and make some changes every three years, five years, or at any time when there is a requirement. Unfortunately, while building a new home or renovating the existing one, we can go over-budget. This generally happens due to mistakes most people make in planning their home design or purchasing materials for building a residence. If you’ve never dealt with building a home before, it’s easy to make some of the more common mistakes that come with the project. Unfortunately, many of these simple errors are very costly. Also, whenever you are building a new house, it is also advisable to have a home insurance policy for your residence, as it will help avoid financial losses that might incur due to unforeseen events like theft, natural calamity, etc. Now, let us look at some tips to avoid costly mistakes while building a new home.

Tips to Avoid Costly Mistakes While Building a New Home

• Thinking You Can Do It All

It's tempting, but learning how to run a construction site on the fly is preferable. When you're building your home, you need professional help. It's not the time to try your hand at construction management. Think of a general contractor as the coach of a team. Their job is to gather bids, connect with all subcontractors, and ensure all the work is done correctly, within your budget, and on schedule. They also have connections in the industry and maintain solid relationships with subcontractors like plumbers, electricians, etc. These local subcontractors want to perform exceptional work on a budget for general contractors because they want repeat business.

• Finalize the Design Before Construction

It’s easy to make changes during the design phase. Everything is merely lined on paper and lists the materials to use. Changing out a few things and re-running the numbers to see how it impacts the budget is all theoretical. Once construction begins, however, making changes can mean tearing down walls, ripping up floors, and other costly things. If you change your mind on flooring after that floor is down, you have to pay for both materials and the work required to remove the first floor and put down the second. All of this dramatically impacts your overall cost and mortgage payment. Make any changes before construction begins.

• Know Where to Splurge

There’s absolutely nothing wrong with splurging a bit here and there. It helps understand which amenities are a must-have and which belong on the important would-be-nice list. For example, if you love granite countertops and want to have them in your kitchen, plan on that expenditure from the beginning. Don’t decide later that you want to install upgrades, especially if materials have already been purchased and construction is underway. Think about what you want to splurge on and prioritize the things you really want. This will help prevent any impulse buying later on.

• Don’t Buy Expensive Things During Construction

While building a new home, most people get tempted to buy expensive furniture and other items before construction is even finished. All of these purchases can affect your financial standing, especially if you buy them on credit.

Conclusion

The above-mentioned tips can indeed help avoid costly mistakes while building a new home. It is also advisable to secure your residence with property insurance. You can opt for HDFC ERGO home insurance where you can cover your home structure worth up to Rs 10 crore.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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