Buying a newly built home can often come with unexpected costs. The median sale price for new construction in the U.S. was $400,500 in February, according to the U.S. Census Bureau and the Department of Housing and Urban Development. While the base price of a newly built house may seem reasonable, the additional costs of finishes can quickly add up. Factors such as windows, flooring, siding, doors, outlets, and light switches all contribute to the final price tag. To save on costs, it may be beneficial for potential buyers to hire a contractor later on to add desired finishes. This way, they can save money upfront and have the option to customize the finishes at a later date.
Homeowners are often faced with the dilemma of balancing their budget while still achieving their desired finishes. According to the State of Home Spending by Angi, homeowners spent an average of $13,667 across 11.1 projects in 2023. To keep costs within range, experts recommend deferring certain elements for future renovations or upgrades. By focusing on the structural elements of the home initially, homeowners can prioritize their spending and allocate their budget accordingly. This approach allows for greater flexibility and customization in the long run, as homeowners can always make changes to the finishes through hired contractors.
When it comes to remodeling projects, costs can vary significantly depending on materials, labor, and location. In 2024, homeowners paid between $14,611 and $41,440 on average to remodel a kitchen, while bathroom remodels ranged from $6,629 to $17,536, according to Angi. To save money on newly built homes, experts recommend opting for basic or lower-priced features initially. This allows homeowners to prioritize their budget and make upgrades as needed in the future. By focusing on the structural components of the home and deferring certain finishes, buyers can save money upfront and enhance their living space over time.
Financial Considerations
When it comes to financing home improvements, homeowners have several options available to them. While some may choose to use cash from savings, others may opt for credit cards, refinancing existing loans, or using a home equity line of credit loan. It is important to be conservative when budgeting for home renovations, as unexpected costs can arise. By prioritizing structural elements and planning for future upgrades, homeowners can create a space that meets their needs and budget requirements. With careful consideration and strategic planning, buyers can save money on newly built homes while still achieving their desired finishes in the long run.
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