When evaluating a potential new construction project for a flip or a long term hold, the very first consideration is always, “Will I make money?” and the next one is “Okay, then how much?” There are various methods to determine the viability of new construction but the basic formula is Sales Price –cost cutting tips Expenses = Profit.

You can get a handle on the future sales price of a new home working with your real estate agent. But you can also increase your profits by saving money during the construction process without having to detract from the quality of the final product. What are some of the things you can do?

When you provide your plans and specs to a builder to get a cost to construct, make sure that you’re crystal clear about exactly what you’re getting. That means a complete itemization of materials. When preparing a quote, a builder can assume that you will want certain items when in fact you could do without. Crown molding and granite counter tops. Do you want that?

Make sure you get at least three quotes for your project then compare all three. You will have a low, middle and high bid. Let the builders know you’re getting multiple quotes then give them the opportunity to rebid.

Stay on track and don’t agree to anything above the initial budget unless it simply can’t be avoided. When reviewing a $150,000 contract, it’s easy to think that $200 here and $150 there won’t mean much to your bottom line. It does and it will.

Think about building during the slow times and not during peak. You can’t expect to build a 3,500 square foot home this January in Chicago but you sure can in somewhere like Houston. New construction is seasonal and when things slow down, quality builders can always adjust their bids to offset slower times. During spring and summer, the demand for labor is greater and the builder must accommodate which means you’ll pay more during these times.

Yet at each turn, make sure you’re not sacrificing quality to save money. Don’t confuse being cost conscious with being cheap. There is an in-between.