Custom home building can be stressful, especially when you’ve got your eye on your bank account. While building a new home typically costs less than buying a house on the market, no one wants to spend more than they have to. And home financing is a tricky business, regardless of what route you decide to take. With no fixed dollar amount attached to your home, there are a lot of factors that can influence the final cost. However, there are several tricks you can use to keep yourself on budget and steer yourself away from budget bloat. The tips below will help you stay on track — and avoid any costly surprises!
Nail the Design Ahead of Time
Many unforeseen expenses can be traced back to homeowner indecision. Once a build starts, it can be very difficult to make changes. Large architectural adjustments may necessitate structural changes, and those can really increase costs. To minimize expenses, you’ll need to finalize every detail of your build before the construction begins. Review the design and materials to ensure everything is accounted for. Naturally, that means you’ll want to do some research into new home construction to ensure you’ve included everything in your budget. You should also be able to lean on your builder’s expertise here. For instance, at Paradisa Homes, our architectural planners and designers will help you select everything from window placement to bathroom fixtures and beyond. It’s one of the advantages of working with an established custom home builder rather than a general contractor.
Pad Your Budget a Little
No matter how carefully you plan your new home build, it’s hard to anticipate every expense. While most home builders try to avoid cost overruns, there’s always a chance that their estimates will be off. Maybe a vendor raises their prices or a subcontractor underbids. Or maybe you just decide the guest bedroom needs to be on the opposite side of the hallway. Whatever it is, unforeseen expenses are not unheard of during the custom home building process. Wise homeowners build an extra 10 to 20% into their new home budget to cover these kinds of surprise costs. Better to have it and not need it than the other way around!
Choose Features Carefully
The great thing about building a new home is that you can choose any features you like. However, if you’re concerned about staying on budget, it’s important to be selective with your choices. That rooftop balcony may sound great in theory, but will you really ever use it? Divide features into “must-haves” and “nice-to-haves.” Again, a little research can help a lot here, since price may be the only determining factor. Keep in mind, though, that many features will be much cheaper to add now than later, when you’ll have to tear down existing structural elements. So if you have the money now (or can borrow it), it may be smarter in the long run to spring for high-end features during your initial build. It’s a balancing act, really.
Choose a Reliable Builder
It’s all too easy for an unscrupulous general contractor or home builder to sink your budget. Perhaps they’ll claim you had a “verbal agreement” for something you don’t remember agreeing to. Maybe they’ll use some creative wording on the contract to sneak in extra costs. Whatever it is, it’s a sure way to blow your budget. Even if it your builder is well intentioned, however, their inexpertise can cost you. They may underbid on materials, meaning an expensive surprise when you get the bill. Or they may just do a poor job, leaving you with a string of repairs in your future. To verify your builder’s qualifications, check that they belong to the National Association of Home Builders and ask for credentials like references and proof of insurance.
Or you can just hire us here at Paradisa Homes. With a full-service staff of architects, designers, engineers, and construction professionals, we can help you avoid cost-overruns and other issues that keep you from hitting your target budget. We’ve built hundreds of homes and two planned communities, so we won’t have any problem guiding you through the home building process. Basically, when it comes to your wallet, we’ve got your back!