5 Simple Ways Buyers Can Save Big On New Construction

Believe it or not, buying a newly constructed home or building a custom residence doesn’t have to be crazy expensive. In fact, there are cost efficiencies that can be achieved which could be the difference between hundreds if not thousands of dollars. Having sold everything from open lots in tract communities, residences still under construction, and fully custom build jobs, I’ve seen where cost can be cut while still building and enjoying a dream residence. Here are 5 simple ways buyers can save big on new construction.

Most clients that I’ve worked with, know exactly where they want to live. They have the ideal neighborhood in mind and sometimes specific streets too! But when it comes to new construction, some areas of town are much more expensive than others. It could be due to schools, investments in that area’s infrastructure, and a slew of other reasons. Whatever the case, as a result, buying a new home or building custom is most likely going to cost more due to the high demand for the community and land scarcity. Simply put, it all comes down to location, Location, LOCATION. If you know the “floor plan” you want to build and the city you’d like to live in, try being flexible on location. What might cost $400,000 in one part of town, the same style home or size of land may be 20-30% cheaper a little further out elsewhere.

Now this one applies to subdivisions where the home is yet to be built. Depending on how many sites there are in the Development, there’s usually a strategic Tier to the pricing. Entry level, midpoint or average, and the premium home sites. While the latter may have you drooling with the ample square footage, maybe big mature trees, and some of the best views in the neighborhood, it’s called premium for a reason and you will most definitely pay big bucks. A good amount of money can be saved in the land alone or at least could be allocated more towards creating a stunning home (which is where you’ll do the actual living). Consider taking the less desirable. This could be the “corner” lot that buds up to the main street or one that just doesn’t have much going on with it. Don’t worry, Landscaping can work wonders! Just sauté on this, as of this post there’s a community in Leawood, KS that has a premium home site priced at: $379,000 and an entry level home site priced at: $249,000. A $130,000 savings in the land alone sounds pretty good to me hbu? 

Most new homes in Kansas City have full basements and sometimes additional bonus spaces throughout. While an area like the lower level would be cool to finish, if you don’t anticipate spending much time down there, it may be best to forego finishing that square footage. Yes it becomes another area of the home to use, but if your main living resides above ground, it may be better served as a storage space instead. Basements usually span the footprint of the main floor and can cost tens of thousands of dollars to complete. While I love a sleek lower level as much as the next, it could be a great area of the home in which to cut cost and tackle down the road. Another option to consider for basements and bonus spaces, is to see what the cost is to just “frame” out the rooms. If you know the layout you’re going for, at least the studs will be in place making it easier to run electrical/plumbing throughout before sheet rock and other finishes.

Depending on the stage of the build, a builder may give you an allowance to stay within for things like: countertops, backsplashes, appliances, and most of the time they have preferred vendors in which to use for the selections. They do this because it makes the build process more efficient, they’ve already established a relationship with that vendor, and overall it helps to streamline the process of selecting materials and getting them to the home site. If a builder has given you an “X” dollar amount per square foot allowance for backsplash, it’s to your benefit to stay within that amount. I know those artisan made Italian imported tiles look amazing, but at $23.99 a Sq Foot your budget will be blown out the water on just that section of tile alone. It’s certainly okay to splurge here and there, but do yourself a favor and stay within the allowances. You can always upgrade things like countertops, appliances, carpet style, and many other items fairly easily down the road.

This one’s for my proactive deal finders out there. Those that have great taste on a budget and don’t mind putting in a little work early on. If you know for sure that you want to build, there’s no better time to start sourcing key items that will take your home from nice to showstopper. I’m talking things like: cabinet hardware, kitchen faucets & sinks, light fixtures, vanity mirrors, tile (if it makes sense), and all the items that truly make your home yours. Now there’s some variables, especially with tile and how much to get (seeing as room dimensions may not be established yet), so use good judgement on that, but for many of the other items, if you catch a good sale. hey, that’s all she wrote. And in the end if that item doesn’t work out, you can always resale it to someone else who has equally great taste.

I hope you enjoyed this post, and whether building or not, potentially took something helpful away from these tips. Feel free to comment below, share with someone that is building a house in Kansas City & elsewhere, or send me a message to chat more Real Estate.