Planning for your new Custom Built Home is a very exciting time! Everything you’ve ever wanted in a home is now within your reach. Many people spend the beginning stages of building their brand new custom home by looking through magazines, Pinterest accounts and other places that offer up ideas. However, many people tend to lose sight of the end game during this stage. That’s why it’s paramount that you keep a close tab on what you’re looking to spend and how each piece of the puzzle will add up to the final cost.
When it comes to setting a realistic custom home budget, it’s important to know what you’re getting into before you actually start looking at numbers. Understanding the costs associated with a custom home beyond the costs of appliances, labor, and materials can help you set a more accurate budget. Afterall, you don’t want to have a number in mind only to learn that it’s far too low for what your dream home will actually take.
Below we’ll go over some of the costs that many people overlook when planning the budget for their new custom home.
The lot you purchase will have a major impact on your overall budget.
You’ve picked out the swatches, decided on the number of bedrooms and bathrooms and even special ordered your kitchen faucet. But have you picked the lot in which you’ll actually be building your home? Purchasing your home lot should be one of the first steps in the process of building a custom home.
When considering your lot, you also need to consider how the land will be paid for. Are you paying out of pocket for this expense or is it going to be part of the money you take out for your mortgage? If your custom home budget is based solely around your approved mortgage loan, then you’ll need to factor in the cost of the lot when setting your budget. This means you’ll need to subtract that price of the land from the mortgage loan amount and then start working on how much you have for materials, fees, labor, and other important parts of the custom home building process.
Think about resale value as you look at floor plans and upgrades.
You might be thinking that the whole purpose of building a custom home is so that you can get exactly what you want, regardless of what anyone else may think! While this is primarily true, you should always consider the possibility that one day you may decide to sell. Or perhaps, your children will. Whatever the case, you don’t want to pick a floor plan that is so outlandish that your house remains on the market for eternity.
There are going to be hidden costs associated with building a custom home.
As you set your preliminary budget, you need to factor in other costs aside from materials, labor, and those amazing upgrades you want for your kitchen and bathroom. You have to factor in items like hooking up utilities, landscaping, inspections, and even permits. These items are often overlooked until the last minute and then you’re scrambling to find the money you need to cover the associated costs. Remember to keep these fees and costs in mind and allocate the appropriate amount for each. This is where working with a professional custom home builder will help you.
Make a list of the things that really matter for you in your new custom home.
It can be difficult sometimes to understand the obvious and underlying costs of the features you want in your own custom home. This makes sense as you probably aren’t someone who regularly builds homes! Again, this is where working with a professional custom home builder can help you. Before you begin, make sure you make a list of the things that are the most important to you.
What features does your custom home need to have? Would you like a bathroom for every bedroom? Will your home feature any “cool” upgrades such as a basketball court or theater room?
After you’ve begun making this list, begin separating it into “crucial” points and “not-so-crucial.” This way, when you get down to the nitty gritty, you’ll know where you can cut some costs without losing your “dream.”
Setting a realistic custom home budget all comes down to how much you have to spend and what you’re willing to spend. If you’re looking for square footage, you might have to sacrifice some of the features and upgrades you’re looking for. If you’re looking for a state-of-the-art home, then you might need to build smaller. At L. L. Lawrence Builders Inc., we work with all of our customers to help them set custom home budgets that help them get an accurate understanding and expectation of what building their dream home will cost.
Are you ready to start turning your dream home into reality? We would love to help! Contact us to get started.