Staying Within Budget When Building a Home

The most important thing for a home builder to remember is “if it’s not in the contract, you are paying extra for it!” This applies to just about any contracting job, but it is perhaps never as noticeable as it is when building a new home.

The most important tip for someone building a home is to be certain that everything required for the project is included in the contract. Most honest contractors will point out things you may have missed, so if you have chosen your contractor well you will get an added bonus in their assistance with budget and contract planning for your new home project.

Unexpected Costs & Upgrades
The problem faced by many first time home builders is that they fail to realize that just changing to more pricey light fixtures and adding $2 per square foot for nicer carpet can potentially change the price of the home by thousands of dollars. It’s the insignificant small details that will add up substantially over time. It is extremely important to be aware of this before signing your contract.

One of those insignificant details that is often not considered until it is too late, is the clean up of the site after the home is built. The other part, which is a costly endeavor, is the disposal of the excess building materials. It is important to wrap these two items into your contract in order to ensure that they will be performed to your specifications.

Kitchens & Bathrooms
Because these rooms require more than walls and flooring, in most homes they are the most costly to build. Considering the type and quality of appliances and fixture for your kitchen and bathrooms when in the initial design phase of your new home is a good idea. The advice given to home builders by contractors is usually to overestimate greatly the cost of your new kitchen and bathrooms. At the time when you are purchasing the materials for these rooms, you can determine whether or not to spend the full budgeted amounts.

Seasonal Fluctuations
Not only does the weather fluctuate during the winter and early spring! This time of year is considered to be off-season for builders in many parts of the country, allowing for lower labor rates if you play your cards right. Taking advantage of lower labor rates may seem like a great idea, however there are other issues faced when building in the winter. A new home builder may not realize that certain chemicals are required in concrete when it is poured in freezing temperatures. These chemicals can potentially cost the homeowner several more dollars per yard of concrete.

Also, the costs for HVAC specialists may be increased because it is their busy season for furnace repair. Other specialists such as plumbers, may charge a higher rate if working outside in very cold temperatures.

Also, materials may be more or less expensive depending on the year. This issue should not affect the new home builder as much as the prior to seasonal related building issues.

Although building a new home is not inexpensive, following the advice above will enable you to stay within your original budget for your building project. Work closely with the contractors in order to determine the best timing and materials for your project. And most of all, enjoy your new home!

This home building article by:
Michelle McClory with BuildingPlans.com

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