You’re building a new home, how exciting! Consider yourself one of the lucky ones who gets to customize their living space to be exactly what they want.
Building your home is thrilling and wonderful, but it can also be a difficult balancing act when determining the budget. It’s often very hard to tell the exact cost upfront, but here are some things to remember when making your home building budget.
The land in and of itself should be put into the building budget. If you buy premium land on the California Coast but aren’t made of money, consider building a quaint little beach house instead of a large Tuscan rambler. If the land is in the middle-of-nowhere Wyoming, then you can spend more on the building of the house.
Consult with local construction companies to see their different price ranges, but the cost of labor for your contractor and his team should be incorporated into the budget. Make sure to sit down with your contractor and set expectations for deadlines and wages so neither of you is caught off guard midway through the building process because of a miscommunication.
Time is money. You may not have hundreds of hours to spend on creating a house design. This is when you should hire an architect to do the design for you. For a more cost-effective approach, you should consider purchasing an existing house design with your customized changes from us. We offer many different styles from a modern three-story to a Victorian villa spun with your own unique twist.
Know what you want to splurge on before you start building and add that to the budget—you may have been dreaming about having an infinity pool or a mosaic tile backsplash so allow yourself to spend. But, make sure you keep your splurges to a minimum and make sure you are very detailed in the type of splurges you want. The more details you include, the more precise and realistic your budget will be.
When building your house, keep the attitude of “stuff happens.” Allow for flexibility in the budget when unexpected but necessary fixes arise that will cost you another 10 grand. When beginning the building process, start with a higher contingency of about 15% to 20% and then gradually reduce it as you go through the project phases.