By Jean Sealey
Northeast Florida Builders
Association
Sometimes owning a new home instead of renting or living in an older home means adjusting expectations to incomes and dealing with hard financial facts even as we dream of the fantasy houses we see in glossy magazines.
Many factors affect the cost of a new home, including financing, construction costs and even local regulations. The Northeast Florida Builders Association offers these tips to help keep the price within your budget.
The down payment and monthly mortgage payments can be the biggest hurdle new-home buyers face so shopping around for the right mortgage options can be an important way to save money. For instance, Veterans Administration (VA) or Federal Housing Administration (FHA) loans sometimes require no down payment or low down payment. There are state assistance programs available for first-time home buyers. Sometimes first-time buyers turn to parents or relatives for help with down payments. Also, adjustable rate mortgages can help keep monthly payments within a comfortable range.
One way to keep the actual cost of a new home within your budget is to do some of the finishing work yourself. While structural construction is best left to professionals, some homeowners choose to do their own painting and woodwork finishing. These jobs certainly are not easy, but may be a way to create a substantial savings. There are also a wide range of price levels for some materials such as cabinets, carpeting, appliances and bathroom fixtures. What people choose to put in their homes is as unique as each person. The important thing is to weigh your options so your new home is comfortable, affordable and meets your needs.
Another cost saving tactic is designing a home so that rooms, like additional bedrooms, can be added in the future. Some homeowners wait to finish a garage or a bonus space a few years after they move in when it is financially easier to complete the work.
There are added costs for regulations that are part of the purchase price which most homeowners never consider. Development fees and other construction charges builders pay add more than $12,000 to the cost of a typical home. These fees include inspections and permits, re-zoning applications, wetland permits, access permits, grading, fire-retardant walls, setback requirements and others depending on locale. These costs vary from city to city, so the location of a new house may affect its cost.
With all these considerations, the most important is the quality of your home. It must be a sound structure that will provide years of worry-free living for you and subsequent owners. Finding a professional builder with whom you are comfortable working is a basic requirement in building your dream house. Visit neighborhoods where you want to live or where there are comparable houses. Talk to the owners about their builders to see what their experience was. Professional builders are happy to supply references to perspective homeowners.
Every home buyer chooses what aspects of a new home are most important. Having a home on a lake may be the dream of a boater. A traditional home with plenty of bedrooms and baths on a cul-de-sac in the suburbs may be someone else’s dream. The excitement of easy access to the theater in the heart of a city may thrill another. Whatever your dream, thoughtful analysis of what is most important to your lifestyle and your budget will help ensure the experience of buying or building your new home will be one of the most pleasant experiences of your life.
For more information about building a new home, contact the Northeast Florida Builders Association at (904) 725-4355. NEFBA provides education, research, legislative representation, media relations, promotions and programs for its 1,500-plus builder and associate members. The association is celebrating 60 years of service to members and to the community through various charitable efforts.