Don't Go Into Debt When Building Your Home

There are certain benefits to building your home instead of buying an existing home. You'll have greater freedom over the home's layout, design and features; utility-powered systems like air conditioning and plumbing are less likely to fail; and new homes are usually more energy efficient. Building a new home isn't cheap, however, but there are several steps you can take to lower the cost of construction and protect yourself from severe debt.

Choose an Open Floor Plan

Generally speaking, the price of building a home varies depending on its size. The larger the home, the more expensive it is to build. An exception, though, is a large home with an open floor plan. Construction contractors typically charge less for homes with an open floor plan because they require less materials and labor to build. So, if you want to save money when building your home, stick with an open floor plan. Aside from its cost-savings benefits, an open floor plan will create a more social environment where you can easily converse with your family and guests.

Get Quotes From Multiple Builders

Don't hire the first builder you find online to build your home. To ensure you get the best deal possible, you should shop around by getting quotes from multiple builders. Even if the first builder offers you a good deal, another builder may offer to construct your home at a lower price. The only way you'll know, though, is by contacting multiple builders for quotes. And if you want to save even more money, let the other builders know what the lowest offer is. This will create a bidding war in which competing builders drop their prices to try and win you over a customer.

Perform Some of the Work Yourself

You don't have to outsource every task associated with constructing your home to a builder or contractors. There are plenty of tasks that you can do yourself, and each do-it-yourself task means money saved on labor. Installing new light fixtures is a relatively simple task that requires just a few basic tools. You can also install bathroom fixtures like vanities, tubs, showers and toilets. Consider your skills and experience and choose tasks that you can easily accomplish.

Check for Builder Discounts

Whether you are shopping for flooring, drywall, light fixtures, appliances or any other item needed to build your home, you should check to see if the store or vendor offers a discount to builders. Many home improvement stores and other construction suppliers offer builder discounts ranging from 5 percent to 20 percent off. While you probably won't be able to get these discounts yourself, you can ask your builder to buy them for you.

Go Solar

A solar power installation will allow you to generate clean, renewable energy for your home without relying on utility power. Furthermore, the Investment Tax Credit (ITC) allows homeowners to deduct 30 percent of the installation's cost from their taxes. If you spend $10,000 on a solar installation, you'll receive a $3,000 tax deduction.

Seek Value-Adding Features

When building your home, consider features that add to your home's value. According to Realtor.com, an above-ground pool increases the value of an average-sized home in New Jersey by about 2 percent. If your newly built home has an appraised value of $200,000, for example, adding a pool will increase its value by $4,000. Best of all, there are pool loan companies that can assist with financing.

Building a new home is a laborious and time-consuming process, but it's highly rewarding. You'll feel a sense of accomplishment knowing that you created your home. And by following the tips listed here, it won't drain your savings account.