Do you want to build your dream house but worry about what it will cost? Making and sticking to a budget is one of the top challenges when building your own home.
Staying on budget is challenging because most people do not fully understand what needs to go into the budget, especially if this is the first time you have built a home. As the house is built, many unforeseen costs pop up, causing you to overspend.
But there is good news! There are ways to create and stay on budget.
The following are seven easy ways to stay on budget during a new home build.
1. Focus on Your Top Priorities
Building a new home can be an expensive undertaking. You could splurge on every item or finish you put into your home. But those costs would add up quickly!
Instead, it would be best to list the top priorities you want to include in your new build. Do you like his or her closets? Or perhaps a roomy mudroom to keep your shoes and jackets stashed away?
If you are a family of five, then your dream home will probably look much different than a retired couple. Every family has unique needs that require a different flow to be functional.
Whatever your top priorities are, you will want to be sure to put those at the top of your list. That way, you can add up the costs from those things you hold dear, then use what is left over for the rest of your new home project.
2. Make a Realistic Budget
When most people build their first home, they make one mistake: underbudgeting. That is because if you are not in the home building industry, you probably do not realize what goes into home construction. The first step to prevent this is to create a realistic budget.
You will have land costs, construction costs, fees, and building permits, and you will pay a builder to build your home. In addition, you may have moving fees, property taxes, legal fees, and other costs, like window coverings, to furnish the inside of the house.
Knowing the different costs can help you create a realistic budget. While it may seem overwhelming to make a detailed budget, it would be worse to begin a project and run out of funding before the building is complete.
3. Research Potential Builders
The great news about building your dream home is that you do not have to do it alone. A builder can help you create and manage your budget. Homebuilders understand the process of building a custom home.
Be sure to research your builder. You will want to pay attention to which builders have clients complaining about going over budget. You want an honest builder that will be upfront with you about costs. One that is knowledgeable and will help you know the cost of your job from start to finish.
4. Avoid Unnecessary Upgrades
When building a home, it can be easy to fall into the upgrade trap. The trap occurs when you see an upgrade that is just a little bit more expensive, like $150, and you take it. But then it happens again. Minor upgrades may only incur a slightly higher cost but can add up quickly.
Making relatively inexpensive upgrades in each room of the house can quickly add up to thousands of dollars. It is better to know what upgrades are your priority and stick with those. There are bound to be other unforeseen costs, and this is an easy way to stick to your ideal budget.
5. If You Overspend in One Area, Then Spend Less in a Different Area
Another good idea is to adjust your budget as you build. If you spend more money in one area, counteract that overage by underspending in a different building area.
Perhaps you decide to make your laundry room square footage more than you had initially anticipated. If so, consider trimming down another room to make up for that.
Or maybe you decide to use a natural stone tile for the flooring. If so, consider a less expensive countertop.
The great thing is that there are tons of ways that you can save on things that are not your top priority. For example, if you do not have to have marble countertops in your kitchen, look for less expensive composite choices. They still look beautiful and can fit into your desired color scheme.
6. Be Honest About the Finishes You Want
One thing that can make or break your budget is deciding what building materials you want in your home. Do you want custom trim in your kitchen? If so, it will come at a cost.
Be open and honest with yourself and your builder about what you want in your home. If you decide halfway through the home builder that you want a different finish, you will have change orders that come at a cost.
The clear you are upfront about what you want, the more accurate your starting budget will be.
Choosing as many materials and finishes as you can before building can also help save you money. Many builders will honor the quote they give you, even if the cost of materials increases during the home build. Agreeing on a price can save you money in the long run.
7. Prepare for Some Unforeseen Expenses
Finally, the best way to prepare for additional costs is to give yourself some room in your budget for unforeseen expenses. You can prepare yourself as much as possible, but there is bound to be something that you change your mind about.
Perhaps you see pricey light fixtures that you cannot live without. Or, maybe you stumble across an importuned tile you want to use in your shower.
No matter how prepared you are, expenses may pop up. Your best bet is to give yourself a little wiggle room in your budget to afford those surprises.
Building Your Dream Home
Are you ready to build your dream home? Let our team help! At Tropic Coast Homes, we help southwest Florida residents build beautiful, custom homes. Contact us to learn how we can help you buy, sell or help with your new home construction.