Skip to main content

Ways to Stick to Your Budget When Building a New Home

By Buying Process, New Construction

Ways to Stick to Your Budget When Building a New Home

If you’ve made a decision to build instead of buying a home, that’s a great start. Unfortunately, the real work starts when you sit down with your builder to choose a plan, finishes, and overall budget. Of course, the things that make sense on paper don’t always work when it’s time to break ground. Sudden changes and fluctuations in the construction industry, unplanned setbacks, and price fluctuations can all derail even the most thought-through budget. Although many people often assume it’s impossible to stay on budget, here are some proven ways to stick to your budget when building a new home.

  1. Have a Detailed Plan

Many building processes often begin before many decisions regarding the design or interior finishes have been completed. Without a clear plan with blueprints, work schedule, and all the materials required, you’ll find yourself adjusting so much on the fly, which could easily derail your budget. Always put down a solid plan you can commit to so you can keep your budget on track from day one.

  1. Track Your Spending

Always keep your eye on your budget during every phase of your home building by tracking all expenditures and flagging any overruns as early as possible. Consider mapping out your expenses on a monthly basis and noting everything down to help you keep the project organized and on track.

Depending on the size of your project, you can use a notebook or paper planner to keep track of all purchases and costs without spending a fortune. Alternatively, you can download expense-tracking software on your mobile phone, tablet, or desktop computer. You can then upload invoices, receipts, and other essential spending there.

  1. Establish Non-Negotiables

The key to establishing a plan you can stick to is to establish your priorities in terms of style, function, and finishing materials. You need to work with your builder to agree on what aspects of the building you could skimp on when the need arises to accommodate non-negotiable categories. For instance, you may want to skip finishing your basement and keep it for the future and instead focus on more outstanding features like siding and gutter system. Or, you may want to opt for quality laminate or wood-look tile for your flooring, rather than genuine wood in order to cut costs.  You may even choose granite countertops rather than marble for your countertops to save even more on spending. 

  1. Hire the Right Professionals

Always hire professional architects, plumbers, electricians, etc., who respect your vision and prioritize your non-negotiables. More often, professionals can work within your budget and will offer you options for cost savings. Work with a reputable building contractor with a solid track record on completing homes of comparable design and budget. With experience in project management, professional builders can help you stay on budget without compromising quality.

  1. Set a Realistic Budget for the Cost of Each Stage

Your final plan should include a breakdown of each stage of the building and line-item costs within each stage. Make things as close as you can get to the last penny. Find the most updated data and material and labor prices based on your location. A good way to do that is to evaluate competing bids, ask around about recent nearby new home buildings, and talk to designers and tradespeople who know real-life costs.

  1. Choose Finishes Before Breaking Ground

The more you dive into the nitty-gritty of selecting finishes before you start new home construction, the less likely you’ll run into budget overruns. Interior finishes often take the biggest chunk out of the total building budget. So, it’s important to plan for every penny down to your bathroom tile and kitchen faucets. To avoid budget-busting surprises, choose your finishes ahead of time and identify where you can tighten your budget or where you can splurge.

Reliable Custom Home Builders in Amarillo, TX Area!

Whether you are looking to build your first home or are ready to purchase the custom home of your dreams, you can trust Experience Homes to make it happen. Our new construction homes offer exceptional energy efficiency, quality craftsmanship, and a home that is uniquely yours! Contact us today to learn about our home trade-in program in Amarillo, TX!

Building a Home? 5 Questions You Should Ask Your Builder

By Buying Process, New Construction

You have made lists, budgets, and spreadsheets and finally settled on the perfect house plan. Your finances are also ready, you have done your due diligence and settled on your builder of choice, and now you are set to start your home building journey.

Be sure to ask the following questions before you commit:

  1. What Financing Plans Do You Offer?

Today, many financing options are available to homeowners who wish to design and build their dream homes. At Experience Homes, we can help you find flexible financing for your project. We can also help pay your closing costs in some instances to reduce your out-of-pocket expenses. We also work with a preferred lender to help resolve credit issues.

Additionally, we offer a home trade-in program where you can swap your old home with a brand new construction one. Our home trade-in options mean we will buy your old home in exchange for a new custom-built one. So you can select your dream home, help design it, and see it take shape. Then, once construction is complete, we will buy your current home.

The program is hassle-free and has no pressure, hidden fees, or realtors. What’s more, we can offer you up to 90% for your old home and save you the hassle of selling, putting your house on the market, multiple showings, and moving twice.

Will I be Actively Involved in the Design Process?

When building your dream home, you deserve a say every step of the way. At Experience Homes, we build long-lasting homes using the latest technology. But all our homes are built to suit the client’s personal needs and wants. We also offer customizable floor plans and can accommodate more upon request.

Additionally, we offer a broad selection of styles, designs, and finishes, including brick color, roof color, window color, exterior trim color, flooring type and color, hardware lighting, plumbing fixture color, and kitchen backsplash, among others.

Can I See Recent Projects You Have Completed and Meet the Owners?

A solid, reputable builder like Experience Homes with satisfied clients will not hesitate to provide a list of past customers. Past customers will tell you their home building experience with the builder and whether they were organized, pleasant to work with, and professional. Ask if they finished their project to their expectations, on time, and within budget. Also, look at the projects and homes to see if they appeal to your taste.

How Often Will I Receive Updates of the Budget and Schedule

Time and money are invaluable commodities during construction. However, a common complaint from homebuyers is they are frequently unsure of how much money they have left, how much the project needs for completion, and how much longer it will take. Timely updates allow you to make informed ongoing decisions on materials and finishes.

What Happens If a Problem Arises?

Home-building is a complex process, and issues often arise throughout the project duration. Ask how the builder guarantees their work, how they handle setbacks, and whether they offer a building maintenance period to fix any problems.

Work With the Best Amarillo Home Builders

Experience Homes is a top Amarillo home builder specializing in custom homes and innovative home-ownership solutions in Texas. We’ve got your back when you’re ready to buy your first home or build one of your dreams.

We build custom dream homes designed to your family’s needs and wants – down to the last detail. With over a decade of building custom homes, we give our clients a smooth and stress-free home building experience from start to finish. Additionally, we can help you finance your new home with our many available financing options. Contact us today.

custom built homes in amarillo

Flooring Trends: How to Choose the Right Flooring for Your Home

By Buying Process

custom built homes in amarillo floors amarillo

Wood, laminate, tile, carpet, even stained concrete. With a market filled with so many different types of flooring, choosing the right flooring for your home can be overwhelming. In addition to aesthetics, there are numerous other considerations such as cost, durability, lighting, and who will be living there.

HARDWOOD

Hardwood flooring is extremely popular due to its durability, warm feel, classic look, and the many different choices available. While traditional oak is still in high demand, there are lots of other interesting choices such as Tasmanian oak and Brazilian cherry. It’s also available in walnut, hickory, and maple. Hardwood flooring averages approximately $5 per square foot. It cannot be exposed to high humidity, however, because its susceptible to swelling that causes depressions in the board’s center.

LAMINATE

A popular cost-effective choice is laminate flooring. Today’s choices achieve the look of tile or natural hardwood, and there are numerous styles and colors to choose from. Some of the most popular hardwood styles include:

  • Water-Resistant
  • Stain-Resistant
  • Embossed
  • Distressed Wood-Look
  • Rustic Wood-Look

Colors range from whitewashed to gray to light and dark wood.

The latest pattern trends include herringbone and chevron patterns, which look absolutely stunning in entranceways and long hallways. Wide plank laminate remains a popular style choice as well.

Tile-look laminate flooring comes in numerous water-resistant styles that mimic the look of marble and stone in a range of colors and patterns.

The average cost of laminate flooring ranges from $2 to $6 per square foot.

TILE

Tile comes in many varieties and price points ranging from $1 to $20 per square foot including:

  • Porcelain
  • Ceramic
  • Marble
  • Granite
  • Natural Stone
  • Slate
  • Terra Cotta
  • Travertine

Porcelain, while cost-effective, is also beautiful and low maintenance. If glazed, it can even stand up to high traffic. Marble, while stunning, is your most expensive choice, and due to its porous nature, it requires periodic resealing.

Many homeowners stay within the $2 to $4 per square foot price range by choosing glazed ceramic tile.

CARPET

Carpet is a comfortable choice that keeps your rooms warm and helps absorb sound. It is the most cost-effective flooring option averaging $2.50 per square foot. It has a number of drawbacks, however:

  • It is more difficult to clean than other types of flooring.
  • It is not pet friendly, because it stains easily and retains odors.
  • It also retains moisture leading to mold buildup.
  • It holds allergens, including dust, that can be dangerous for people with asthma, allergies, or other respiratory illnesses.
  • It attracts dust mites and other pests.

STAINED CONCRETE

If you are planning on selling your home, stained concrete is an excellent choice. It’s an extremely versatile option, because it can be stained to look like virtually any type of flooring your imagination can dream up. Far and away, it is the most durable choice and practically maintenance-free. The average cost per square foot falls between $7 and $15 per square foot. More elaborate designs can run as high as $25 per square foot.

Experience Homes lives up to its name as experienced home builders and experts in helping you choose the best flooring options for your home. We will install a variety of flooring types in your home to help you make it your own. We are also innovative, creating interesting patterns to help you create a more attractive look.

We also offer the unique option of our Home Trade-In Program so that you can make your dream home a reality. You can trade-in your old home for a brand new construction home. We help you get financing, and you won’t have the pressure of two mortgages. There are also no realtors fees, no house showings, and no pressure to be out of your trade-in by a certain time.

Contact the experts at Experience Homes in Amarillo, TX today.

home build

How to pick the perfect paint colors for your home.

By Buying Process, Home, New Construction

How to pick the perfect paint colors for your home.

One of the most exciting things about getting a new home is getting to do things just how you like them. But picking paint colors can be a tough job. There are so many, where do you even start? Getting to know the color trends can make it a little easier. Maybe you have a particular look in mind or just want to exercise a little self-expression. Either way, you can use the 2021 trends to help get the right aesthetic for your new home.

Interior paint color

What better way to start thinking about your interior paint colors than by taking a look at the Pantone 2021 colors of the year. This year there are two: Ultimate Gray and Illuminating, which is a bright yellow.  Grays are versatile neutrals that can complement just about any style and look perfect in any room. While yellows are a classic for kitchens. A bright yellow can also make a good accent color. You don’t necessarily need to go with these exact shades either, but it can be a good starting point.

Earth tone palettes are a very big trend this year. So many people have spent so much time indoors recently that anything that gives a nod to the great outdoors is a welcome sight. Greens, blues, and yellows are popular choices, but the big trend for earth tones this year is brown.

Along with dark brown, other fall colors like purple are popular right now too. Especially some of the bolder, more saturated, and luxurious-looking shades. A good example is Aubergine, a brownish-purple color. These colors are usually too intense for an entire room, but they can make a great accent wall or accent color in decor. If you have an accent color or two you would love to have in the room, you can work from there and look at wall colors that would work with them.

Exterior color

When picking exterior colors, you’ll want to consider the curb appeal of your home, or how it will look from the street. For this reason, most people don’t want to go overboard with something too bold. You’ll want to consider the window color and roof color too when making your exterior color choices.

Those can’t be easily changed and you don’t want anything visually offensive that makes your home look like an eyesore rather than stylish. White or other neutrals are always a popular choice, you can avoid looking too average by picking a trim color that is bold or dark. It’s the perfect spot to work in some color.

Neutrals and blue

If you absolutely aren’t sure what to go with, pick a neutral. They’re popular for a reason. And they work both inside and out.

Another color that is almost universally appealing is blue. It’s a calm and soothing color that also works inside and out. For that reason, it’s a popular choice for bedrooms and bathrooms. This year’s trendiest shades like turquoise and sapphire can provide a pop of color to your interior

If you need a change of scenery and are looking for more than just a simple “freshen up” of your current home, a home trade-in program is a unique option to help get you into your dream home quickly with no realtor fees, and no worries about two mortgage payments or moving out before you’re ready.

Call Experience Homes, professional home builders in Amarillo TX to trade in your old home, or build a new one and start dreaming of your perfect colors now.

house

How to Choose the Best Layout for Your Home

By Buying Process, New Construction

How to Choose the Best Layout for Your Home

Homebuilding gives you the opportunity for no regrets, but the many layout choices can be daunting. At Experience Homes, we offer a wide variety of floor plans to choose from, and can design your beautiful new home to meet, and exceed, your needs.

BEDROOMS

Do you have a growing family, or plan to in the future? Do you frequently entertain overnight guests or have family come to visit? Having plenty of space for everyone is necessary to keep everyone comfortable and happy.

Along with your family’s growing needs, will come the desire for additional bedrooms. A crying newborn can keep other family members up through the night, children and teenagers will want their own space, and finding room for guests can turn out to be like a game of Tetris. These are things you’ll need to consider in the span of building your home.

LOCATION

If your kids are old enough for video games or loud music, you may want to keep their bedrooms a good distance away from yours. However, if you are just starting your family, you will want at least one bedroom close to the master bedroom to use as a nursery.

Do you want the master bedroom close to the main entrance of the home for security? Or would you rather have a closed-off quiet oasis separated from the main living area? If your kids are prone to fighting (we’ll call it playing rough) or have a large age gap, it might be best to separate their bedrooms a bit. However, if mom or dad is prone to working late or overnight hours, it might be a good idea to place the master bedroom closer to the garage or main entrance, for easy access without disturbing others.

DON’T FORGET THE BATHROOMS

Consider his and hers vanities for the master bathrooms. It sounds simple, but it will really help alleviate tension during busy mornings. “Jack and Jill” bathrooms (bathrooms connecting two bedrooms together) are popular for kids’ rooms and allow them to have their own privacy.

If you have frequent visitors to your home, it’s important to have a half bathroom available near the main living area. There should also be one full bathroom for every two bedrooms in your home.

STORAGE

Storage space is so much more than closets. It can take a home from feeling cramped and cluttered, to roomy, clean, and comfortable.

  • Kitchen – As your family expands, so will your need for cabinet and pantry space. You will continue to require new cookware, new small appliances, and more food storage. Consider built-in pantry space and plenty of large cabinets to hide unsightly bulky items and keep food stored away.
  • HovHubs (Designated Workspace) – These spaces are essential for today’s families, especially if you opt for an open floor plan. Placed in a central location, it can serve a wide variety of needs for every family member from homework to a quick recipe search to answering an email.
  • Garage – A well-designed, well-organized garage can hold so much more than your vehicles. Think about your children’s bicycles, outdoor toys, family sports equipment, tools, and holiday decorations. You can also install a second mudroom in your garage.
  • Mudroom – If you’ve ever had a loved one come home after a long hot day’s work, or kids come in from football practice on a rainy day, then you understand how critical a well-located mudroom really is. It not only gives everyone their own “unloading” cubby space, but can keep your home from being extra smelly or cluttered.

CONSIDER ADDING A PLAYROOM

Having a designated space for all of your children’s toys can save you hours of time keeping their bedrooms clean and organized. As your children grow older, you could convert this space into a game or theater room.

WHAT ABOUT THE LAUNDRY ROOM?

A well-placed laundry room can make all the difference when you are raising a family. Multi-tasking is a lot easier if you choose a location near the kitchen because you can quickly check on the laundry in between cooking tasks. If you choose a two-story home design, you may prefer your laundry room to be located upstairs near the bedrooms so you don’t have to carry it as far.

DIMENSIONS

Do you dream of a large, eat-in kitchen or would you prefer more dining room space? If you’re a family whose life is lived around the kitchen or dining table, you may want to dedicate more space to create a larger, more open-concept kitchen and dining area, so the spaces aren’t “closed off” from one another.

What about beyond the interior? If you like to spend time outside, or if you have children or pets that like to run around, you’ll want to consider the size of your outdoor space in addition to your home’s square footage.

OTHER CONSIDERATIONS

You will also want to think about the location of outlets, windows, fixtures, and doors. We have all seen houses with out-of-place outlets or light switches, or even light fixture locations that don’t seem to make sense. Save yourself the trouble later on by planning ahead.

Outlets need to be easily accessible, and their locations need to be well-planned out before moving in and getting settled. There should be at least one outlet located on every interior wall, possibly two or more, depending on the size of the space. Well-placed light fixtures and ceiling fans can mean the difference between a dark and dreary room and a comfortable and inviting area.

Big fan of natural light? Your window placement is essential to what kind of sunlight comes into your home and where. If you’re a night owl or late riser, the last thing you’d want is your bedroom windows facing directly toward the rising sun in the mornings.

It takes much more to building a house than simply picking a layout. That’s why you should trust the experts at Experience Homes. We take the time to walk you through the building process, and not only take care of all the details but create a house you feel perfectly at home in. Contact us today.

Questions to ask your home builder

By Buying Process

Home Building: A More Modern Approach

For those looking to build equity and retain existing assets, one of the best possible moves is to acquire real estate. You can even design a home with certain builders, such as Experience Homes, then they’ll purchase your old home as you’re looking to move into the new property. This makes everything a lot more affordable and includes a host of associated benefits such as:

  • You Don’t Have to Pay Any Realtor Fees
  • There is Only One Mortgage at a Time, Instead of Multiple Mortgages
  • You Don’t Have to do Any House Showings
  • The Stress of Being Out of the Old House on a Deadline is Gone

Notable Questions Worth Asking

Of course, less complication doesn’t mean you should neglect to ask your builder certain home building questions. Especially with custom builds, there are a lot of little details that need to be addressed. A few we will briefly explore here include:

The Level Of Budget You’re Working With

When you’re in the home building process, the budget you’re working with will likely expand. Asking the builders what you should expect to spend in advance is wise. Now, the more professional the company, the closer they’ll hit initial estimates. However, the more customization you desire, the more your budget will need to expand.

Accordingly, when asking about the associated budget of a prospective build, add about 15% to whatever you’re told. If builders come in under budget, you just saved a huge amount of money that can be put into other aspects of the property.

You will also need to take into consideration closing costs, living expenses, home insurance, and other fees. Ask your builder if those things can be “rolled in” to your overall home payment.

What Sort Of Timeline Defines Your Build

How long will it be before the home building project you’ve initiated is complete? Again, more professional builders tend to get the job done in a fast way that is simultaneously qualitative; but unexpected events still happen. Add at least a few weeks just to give yourself a margin for error.

The Location Where You Build: Do You Have Land?

You should have the location where you plan to have the house built figured out beforehand. There will be utility fees unless you’re building some sort of totally sustainable off-grid property. Most traditional builders operate on designs built around traditional grid-based utilities.

How Many Customization You’re Going For

If you’re building a custom home, that could be more or less expensive depending on associated customization. Working with your home builders in advance can help you balance your own custom modifications with their abilities and preferences as builders, facilitating the most cost-effective and harmonious result. That said, some customizations get pricey.

Decor Packages, Including Associated Trim And Fixtures

What sort of decor, trim, and fixtures will be associated with your new property? You definitely want to get these details right. If they don’t match your aesthetic preferences, the cost of fixing such issues can be high, and it’s unnecessary if you just get these things figured out in advance with your builders.

Exploring Home Building And Trade-In Options

Going the trade-in route allows you to save time and money while getting a greater level of customization in your new property, and avoiding both realtor fees and simultaneous mortgages.

Ask about decor, trim, and fixtures. Determine where the land will be that you build on. Plan for a timeline within a few weeks of projected estimates. Finally, design a budget around these things as you fully realize what will be necessary for the process, and how much equity you already have in your existing home.

For more information on home building, and how best to go about it, check out Experience Homes in Amarillo, Texas. We offer trade-in options, customization, and experience.

 

new home build

Production Homes Vs. Custom Homes

By Buying Process

Anyone planning on engaging in the home building process and planning on finally seeing their “dream home” become a reality needs to think carefully about the differences between production homes and custom homes.

Production homes are basically a more uniform, streamlined, or even “cookie-cutter” approach to homebuilding. It gives the homeowner less control over the process and less ability to customize the exact details of his or her future home.

That’s not to say, of course, that production homes are not a good choice for some homeowners – and then there’s the middle-of-the-road “semi-custom” home option, too, to consider. BUT, if you want to custom-craft the exact home you want, you have to go to a custom home builder to get it done.

Here are 4 key advantages of opting for custom home building over production homes:

  1. Designed & Built “From Scratch”

The homeowner has the ability with custom homes to choose the floor plan, the size of the building, building materials, landscaping, stone countertops, and practically everything else.

A production home will have all or most of these features pre-set, while a semi-custom home gives you a greater but still limited menu of options to select from. Custom home building means you can collaborate with the builder and architect over any or all aspects of your future home.

  1. You Can Find Your Own Lot

With custom home building, you have the option to search out and buy your own lot separately if you wish. You can buy it from the custom builder if you wish, but it is not a requirement. With production homes, the lot and building simply automatically “come together.”

Custom-built homes are often designed in a way that closely marries the lot to the home, make architectural decisions based on geography. For example, you may change the position of windows and doors to gain more lighting or a better view of your surroundings.

  1. You Can Monitor & Control Costs

Building a custom home will require more involvement by the homeowner, and it may take more time and cost a bit more – but it’s worth it for the often superior quality of workmanship and the full customization you receive.

But another way to look at it is that customized homes mean customized budgets. You can make decisions to balance features and costs and stay within your desired budget. You don’t have to just go with a predetermined price point as with production homes.

  1. Working With Local Custom Builders

One big benefit of building and buying a custom home is that you get to work with friendly, local builders with a high level of experience and expertise. All too often, big national companies control production home projects and you just don’t get that “local feel” and “customized customer service.”

To learn more about the benefits of custom home building or to talk to an experienced custom home builder and start planning your dream home, contact Experience Homes in Amarillo, Texas, today!

Home for sale in amarillo home builders amarillo

Siding & Brick Trends: How To Pick The Right Exterior for Your Home

By Buying Process, Home, New Construction

Home for sale in amarillo house amarillo

 

Building a new home in 2021? It’s important to be aware of this year’s trends so you can make an informed decision with all of your options in view. This is never more true than with the exterior covering of your home.

Most homes built today will utilize either brick or siding – or more likely a combination of the two. Custom home builders will be familiar with all of the latest trends as well as the timeless classics, so you should definitely go over home exterior options with your builder.

But we can look briefly here at the basics. Here are four key considerations when selecting brick and siding colors/styles that every Texas homeowner should be aware of.

1. Brick Is Booming Across Many Styles

Brick is now readily available to home builders in numerous colors and styles – more than ever before. The real trend with brick is simply diversity and uniqueness – making your home different in some way from all others. While more costly than siding, brick is more durable.

Classic brick red, a deeper burgundy red, antique white, browns, blacks, and khaki are among the more popular exterior colors for brick homes right now. But there are many other colors and shades that offer a panorama of curb appeal possibilities!

And you also have rough-hewn brick surfaces, smooth-faced brick, “faded glory style,” and more to consider. The surface contour of the bricks will do much to influence the overall ambiance of your new home – creating anything from “vintage” to “business-like” to “playful.”

2. Don’t Forget About Thin Brick & Brick Highlights

Many times, homeowners are choosing to have their porch areas or other small, stand-alone brick zones done in a brick veneer product often called “thin brick.” This trend saves money, makes installation easier, and gives you much of the look and feel of “thick brick.”

Also important when designing brick areas for your home is to outline brick zones with other materials. Brick up against natural stone, stucco, or siding can create an interesting and aesthetically pleasing “highlighting” effect.

3. Pair Siding Colors With Brick Colors Wisely

Some homes have the entire exterior done in brick alone, and that can look great. But it’s usually more economical and/or desirable to most homeowners to do a brick-siding combo on the exterior.

This brings up the issue of pairing the siding color with the brick color. Pairing a forest green with brick red is popular, both colors having a kind of “faded” look to them.

Deep burgundy brick can go well with the same color of siding. Blue-green siding contrasts well with most colors of brick popular today, while light gray is the top “neutral” (less bold) siding color of choice with just about any brick color.

4. Choose Your Siding Material Carefully

Vinyl is the most popular siding material these days, largely due to two factors: a huge variety of color options and the most affordable price point.

But don’t overlook the possibility of wood siding for its warm, natural look. Pine and cedar are the trendiest woods, with board and batten and shingles/shakes being typical forms. (Engineered wood mimics fiber cement board siding while reducing the weight and the cost somewhat.)

Doing the front with vertical wood siding and the gables with wood shakes is a popular trend. Selecting out certain areas for “special treatment” in general is “in.” So this gives homeowners plenty of space to exercise their creativity!

Custom Home Builders in Amarillo, Texas

To learn more about modern home exterior, especially brick and siding, trends in 2021 and beyond, contact Experience Homes – the custom home builders of Amarillo, Texas, today!

What You Need to Know Before Building a New House in 2021

By Buying Process

As we move into a brand new year – 2021, you may be thinking about building your dream home. Both home buying and home building carry with them a flurry of requirements, steps, and processes that should be given careful thought before you get started.

First of all, you should think about contacting a local, reliable builder who specializes in new homes and can help you build your own. A helpful, experienced builder will be able to guide you through the process step by step from beginning to end.

But even in the initial planning stage, there are a number of considerations to keep in mind – including these:

1. Formulate A Home Building Budget

Everyone who undertakes to build his/her own home has to work from a budget. This gives you a framework within which to work and plan and helps you to figure out where you can save money and where you want to invest your biggest expenditures.

Begin by finding out how large of a building loan you can qualify for. The lender will take into account your total annual income, your current financial obligations and debts, and your credit history.

Most banks right now are pretty generous about home building loans, so you can most likely qualify. But you also have to ask yourself how much you are comfortable owing and for how long. And you need to plan on the project costing at least 10% more than planned due to unexpected costs that inevitably come up.

2. Decide On Your New Home’s Location

You want to look carefully at the 2021 forecast for the housing market in each local area, such as the North Texas Panhandle. The best place to build won’t be determined solely by cost, but you want to plan (usually) on 20% to 25% of the total cost going toward the purchase of the lot.

Proximity to your workplace, schools, relatives’ houses, and amenities and the safety and desirability of the neighborhood must be considered, of course. But don’t forget to look into things like zoning rules, building codes, drainage, and soil conditions as well.

And pay some attention to landscaping issues or to what you would like to do with the landscaping and how much that will add to the total cost of home building.

3. Dig Deep Into Home Design & Outfitting

There are many pre-made, standard home designs you can find online, and even a custom home builder would use a number of “starting point” floor plan options that you can adjust. Or, you can make your own floor plan 100% from scratch if you wish.

Custom homes will take more work to figure out as to exact plan, material and labor cost estimates, and what it will cost to furnish and “outfit” each room. But it’s worth it! You get exactly what you want.

You will need to make a list of must-haves and should-haves, calculate costs for each element of the new house, and even calculate it out room by room. You will need a system for organizing and tracking expenses. And you may have to trim down your original design if it gets too far out of budget. Home building is a process, and that’s normal.

Finally, you will need to plan on how to sell your current home, and you may want to consider a home trade-in program to simplify and speed up the process, while avoiding the possibility of a period where you carry two mortgages or have stressful deadlines to meet.To learn more on how to get started on building a new house in the year 2021, contact the professionals at Experience Homes in Amarillo, TX.

person with house keys to a new home

Is a new home purchase tax deductible?

By Buying Process

If you have just bought a new home or are about to, you definitely will be interested in finding ways to save as much as you can – including on taxes. Which raises the question, home buying tax deductible?

That’s a big question, and the answer breaks down into several more detailed areas. Here are the most important things you need to know about whether buying a new home can be deducted from your tax bill.

You Can Deduct Certain Mortgage Expenses

In general, you cannot simply deduct home-buying costs – but there are important exceptions that are tax-deductible. Some of these are mortgage-related.

First of all, you can usually deduct the “points” from a prepaid mortgage. Under the points system, the lender charges a fee of from one to three percent (one to three “points.”) This will add up to thousands of dollars, so it’s good to know that chunk of change is fully tax-deductible.

Under the Tax Cuts & Jobs Act, you can also deduct the interest paid on your home mortgage. That’s huge! While there is a cap of either $1 million or $750,000, most people will be able to deduct 100% of mortgage interest – and the interest is often as much or more than the cost of the home.

Also, you can deduct mortgage insurance premiums, and low-income home buyers may qualify for the mortgage tax credit deduction which allows them a tax credit of 20% of mortgage interest per year or up to a $2,000 limit.

Property Tax Deductions

When you buy and/or build a new home, you can also start deducting state and local taxes, especially property (real estate) taxes. Up until 2025, there is a $10,000 cap on this deduction which was introduced by the Tax Cuts & Jobs Act.

Being able to deduct taxes from your taxes may seem ironic, but it may add up to a deduction of thousands of dollars per year.

Deduct Home Equity Loan Interest

If you take out a home equity loan on your new home, you can also deduct the interest paid on that loan up to a limit of $100,000.

You may wish to use this kind of loan for further home improvements or to build a second home or improve a second home. This may be a way to build a new home or a vacation home and save some money while doing it!

Capital Gains Deductions / Exclusions

Finally, if you are selling your old home to move into your new one – very often the case, you can subtract all the home repair and home improvement costs you put into your old home over the years from the capital gains tax basis.

And if you qualify for a capital gains exclusion, you can keep the first $250,000 profit from selling your old home (or $500,000 if filing jointly as a married couple.)

Thus, while home buying is not technically an official tax-deductible activity, there are nonetheless ways to get deductions, credits, and other tax savings with buying a new home (and selling an existing home.)

To learn more about how you can reduce your tax bill when going through the home buying process, talk to your local tax professional, and then contact the professionals at Experience Homes in Amarillo, TX today to get you started with a new home!