Poor financial planning!
The good book says in Luke 14:28 “For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?” Unless you will be buying your home out of pocket (in that case, we envy you!), you are going to need financing, and it’s a good idea to see what you can afford to borrow before you meet with a real estate agent, an architect or contractor. Check around for the best mortgage rates and terms and find out how much you can afford. Even more important than what you can afford, is what fits into your budget. Building your dream home should not plunge you into debt or a straitjacket. Deciding on the type of construction and style of the home that will fit into your budget may require some research but it will definitely pay off in the long run when you have a dream home that is not a nightmare.
Planting roots in the wrong location!
After you have built your dream home, you will not be able to move it around if the location chosen turns out to be wrong for you. Building on a busy street, near a 24 hr supermarket, in an area without all utilities can cause problems in the future. Residential developments often mean that you will have neighbours very close to you. The route from your home to work may have heavy traffic that you may not be able to live with after a while. Consider changes that may occur in your environment in the future and how that will affect your quality of life, and value of your property in case you decide to sell your home later on. For your own enjoyment and for future sales look for property in a location which is convenient while still being relatively peaceful.
Not starting out with a good set of plans!
People think they are saving money by not buying good plans. First, without plans you cannot get an accurate cost estimate for building a house. You can’t make an accurate materials list so you won’t know what the materials will cost. Without plans, a contractor will not know how difficult the house will be to build so he cannot give you an accurate estimate of the labor. The plumber, the electrician and other subcontractors need to be on the same page so it must be a plan that can be understood by all concerned. Incomplete or nonexistent plans will inevitably lead to misunderstandings, tearouts, delays, and conflicts which cause greater expense.
Choosing the Wrong Builder!
Shop around for builders, ask for references and check them! Do not make the mistake of choosing a contractor because he has the lowest price. Your builder will become your best friend. Talk with several, check out their work to find the right fit. A good contractor will be willing to work with you to stay within your budget by going over the proposal to see where you can cut back. Regardless of your choice, understand that working with a professional with a solid background and years of experience can come at a premium price. But it’s worth the investment.
Building for only your current needs!
Right now it is only you, your spouse and a dog but is it going to remain that way? If you know that children are in your future, build with them in mind. It is wise, if you cannot afford to prepare for children immediately that you build to allow for an addition later on. There is nothing worse than building a new house that is already too small the day that you move in. If you need more square footage than you can afford at the present time, consider lowering the cost of the fixtures such as cabinets, windows, and doors some of which you can always upgrade in the future. If this is to be your retirement home, what will your needs be then? Does your home need to have wheelchair access? Will you always be able to use the stairs?