There are more people than ever before who are making the very wise decision to build their Dream Home! From nice little bungalows nestled on inner city in-fill lots to huge 8,000 square foot mini mansions located on acreage waterfront home sites, the opportunities are endless for today's savvy Owner Builder.
However with the numerous examples of beautiful homes that will produce countless memories for their proud owners there are just as many cases of the Owner Builder project gone awry! The beautifully conceived Tudor style home that never reached completion, the Mediterranean stucco home that never left the architects’ drawing board and the 4 story town home that went way over budget and took over a year and a half to complete!
My goal is not to discourage you from building the home of your dreams but instead I hope to educate you on the 5 most common mistakes that have plagued Owner Builders! If carefully heeded, your Custom Dream Home project will go off without a hitch and provide your family, friends and loved ones with numerous years of enjoyment!
Here are the 5 Mistakes you should avoid when you construct your Dream Home!
#1 - Do not over-build for the community or area. It is important that you build a home that is comparable to the majority of the homes in neighborhood and/or area. If the average home in the area is 4,500 sq. ft. , then I suggest you build no more than 500-1000 sq. ft. larger than the average home in that area. In most cases, I suggest that you never build a home smaller than the average home as that could prove to be a challenge if you ever decide to sell.
#2 - They design a home that is too unique that doesn't have mass appeal!I am sure you can remember driving through a neighborhood and you saw a home that simply stuck out like a sore-thumb! I believe in being different however when it comes to designing my Dream Home I don't want a home so unique that it causes me to lose money. Really unique homes that are not comparable to the surrounding homes in an area are hard to value and in many cases the owners are never able to recoup their original investment.
#3 - Choosing the wrong builder!Your choice of builder in many cases is the single most important decision in the whole process of constructing your Dream Home! It is important that you exercise caution and that you thoroughly interview at least 3-4 different builders before making a decision. You should also visit the on-going projects of the builders to see the projects they are presently working on. The time you spend planning with and interviewing builders will prove to be the single most critical aspect of your Custom Dream Home project
#4 - Trying to save money by performing work on the home themselves!Unless you work full-time in the construction industry I strongly recommend that you pay experienced trades to perform all of the work on your Dream Home. Sweat equity generally takes longer than expected while the potential savings are never as substantial as anticipated and they generally add unnecessary stress and anxiety to a process that already has too many variables to be managed. It has been proven that time spent planning and managing your project is 3 times more valuable than time spent actually working on your Custom Dream Home!
#5 - Not securing Construction Loan Financing first before doing anything else in the planning process!I saved this for last with the hopes that it will stick with you when you forget any of the other mistakes! By securing your financing first, you now make it easier to design and plan your project because you know exactly how much money you have to spend. This becomes extremely important when you sit down to design your home so that you don't design a home that goes over your budget.
The other benefit to securing your financing first is it provides you with a strategic advantage when you negotiate with builders because they understand you are 100% qualified and are ready to begin construction once you decide on a builder!
Hopefully you will write these down and keep them close and review these mistakes as you begin the planning of your Custom Dream Home. Using these tips will save you time, prevent stress and help you produce a top-quality Dream Home that your family will enjoy for years to come!
Tyron C. McDaniel, author of the book “How to Build Your Custom Dream Home for Less!" has been in real estate since 1999. As a Construction Loan Expert, Real Estate Agent & Real Estate Developer Tyron has helped a number of clients with the planning and construction of their Dream Home. Tyron's expertise in Custom Dream Home Financing and Design consultation is in high demand with clients from all around the country. For more information, please visit Tyron now at http://MyDreamHomeforLess.com/