Building a custom home is a smart decision for many reasons. Not only do you get the benefits of living in a home that was tailored to your lifestyle and preferences, but you also have a long-term asset that increases in value over time as you gain more equity. The more equity you can start with, the sooner your investment will be able to provide more financial options. You can increase your starting equity by making a larger down payment or paying more toward your principal, but if you want to hang on to your cash, building sweat equity is another path.
Certain elements of the homebuilding process require professionals with the appropriate expertise, but there are some tasks you can take on yourself to build sweat equity. By performing the work yourself or investing the time to manage certain projects, you have the opportunity to build equity immediately. Depending on how much time you have and how handy you are, doing some of the following activities on your own can help you get more for your money.
There are a lot of tasks that must be completed before you build. You can increase your equity by doing them yourself or managing the process for some of the following projects:
Every new construction project requires a range of permits and jurisdictional approvals. Although the builder must acquire the permits in its name, you can pay the fees to increase your equity.
In many cases, the soil surrounding the new home site is not sufficient to support large construction vehicles going back and forth. Installing a temporary gravel driveway solves this problem. You can secure the materials yourself, rent the necessary tools and equipment, grade the soil, and install the gravel, or you can outsource this task to a subcontractor. Either way, your investment helps you build equity.
Construction sites need water and electricity to operate. You can work with your local utilities to set up temporary solutions that will allow the crews to work until the final hookups are installed.
Excavate the Building Pad
The construction crew will pour the foundation, but the more you can do to prepare the site before the crew arrives, the more your investment will be. Find a subcontractor with the necessary tools and skills to level the site and get it ready for the foundation or do the work yourself for even greater value.
Construction sites are stand-alone operations that need amenities like portable toilets. The crew can arrange this, but by taking it on yourself, you are building equity.
You don’t necessarily have to be swinging a hammer to contribute to the construction of your new custom home. There are several projects you can take on to boost your investment while the crew is framing, sheathing, roofing, and finishing your home.
Many sites require drainage systems to keep water away from the home and allow it to drain away from your yard. You can dig drainage trenches and install the necessary equipment to get rid of excess rainwater.
Coordinating the installation of the septic system is yet another way to save money on construction fees and improve equity. The more you pay for without tapping your construction loan, the lower the costs will be in the long term.
Clean up the Site
Even the cleanest crews will produce a certain amount of construction debris that has to be removed from the site. Work with your construction superintendent to set up a system so that you can remove waste materials throughout the project.
Painting walls is a task that most people can do. Although it takes time, you can save significant money and increase your equity by doing it yourself.
Landscaping and exterior features like decks and walkways add to the value of your home. You can get the most from this investment by doing much of it yourself and hiring professionals to fill in the gaps as needed.
Adair Homes offers a unique solution to homeowners who want to build equity during the construction process. Our innovative project management system allows you to participate in certain tasks no matter how much or how little DIY experience you have. Of course, not everybody has the time to invest in sweat equity or has the interest in doing some of the work themselves. If you want to build a new custom home without the hassle of participation, we offer a turn-key program that takes care of everything for you. Whichever approach sounds the best for you, contact us today to learn more.