U.S. News & World Report recently highlighted some of the most common financial mistakes people make when building a new home:
1. Don't Overbuild: According to the National Association of Home Builders, a custom home in the U.S. costs an average of $105 per square foot to build. By eliminating even 500 square feet that you don't need in a new home will save over $50,000. In addition to the extra construction cost, there will be additional property taxes, insurance, heating/cooling, and upkeep expense on the extra square footage.
2. Consider the Resale Value at the Beginning: Don't overbuild for the neighborhood, and don't build a home so personal or unique that no one else would want to buy it.
3. Weigh the Upgrades: Decide which upgrades you really want the most, along with which ones will appeal to future buyers. Some upgrades like wood floors and granite can be added in later, but a third bath or garage must be decided in advance
4. Monitor the Progress: Visit the construction site often. Make sure things are matching your expectations, and ask questions if they don't. You don't want to end up with something that you are unhappy with or have to pay to fix after the fact.