“Can I afford a custom home?” It’s one of the first questions people ask themselves when deciding whether to build or buy their next residence. It’s not exactly an easy question to answer, however. While you can look at your finances and come up with an overall budget fairly easily, custom homes have a variety of budgetary factors to consider.
Let’s take a look at each area of a custom home you need to budget so that you can better set a realistic budget for the entire project.
Factor #1: The Land
First off, decide on a budget for the lot where your home will sit. You need to purchase this to build your home, after all, and the size and other features of the lot will dictate how the home will be designed. Many elements of the location (school district, neighborhood, crime rates, value of other homes) will have an impact on the price of the land, so do research to make sure that your ideal location lines up with your budget for the land.
Factor #2: The Home
The biggest chunk of your budget will be for the home itself. Thankfully, this is one of the more straightforward parts of your overall budget, as the cost for the home will be estimated once you decide on design and materials. The better you can plan this part, the less likely your budget will be compromised later on by any changes or complications.
Factor #3: Extras and Upgrades
Talk to your custom home builder now about any extras or upgrades you’re considering, as that’s the only way you’re going to be able to budget appropriately for them. Do you want energy-efficient windows or smart features in your home? What about high-end appliances? Extra storage in the kitchen or bathroom? Talk to your builder about these and set a budget before the construction phase begins.
Factor #4: Landscaping
You also have to think about the exterior of your home. What plants, furniture and design features do you want in your front yard and backyard? Landscaping costs can add up, so this isn’t something you want to neglect as it pertains to your overall budget. Decide ahead of time whether you want any trees removed, ground leveled, a pool installed or any other land improvements.
Factor #5: Other Costs
It’s always a good idea to build in some leeway in your budget for surprises that can pop up. The best custom home builders won’t hide any fees, of course, but that doesn’t mean the scope isn’t flexible depending on complications that arise or new features you decide that you want in the design process. Make sure you factor in these miscellaneous other costs in your custom home budget as well to empower you with additional choice during the build process.
If you’d like more advice on how to set a custom home budget, contact us today.
