Why Controlling New Home Construction Costs Is All About PlanningUnfortunately, new home construction plans and budgets rarely agree. The costs of building dream homes tend to jump higher than expected leaving homeowners with empty wallets, often called “budget creep.” The addition of new items or mishaps that arise may seem small at the time but end up adding up to a hefty sum when construction ends. This is mainly due to poor planning and unrealistic expectations.

To avoid fiscal disaster and heartache, you should do your due diligence ahead of time and then continue this practice throughout the whole construction process. This will give you the preparedness you need to have a stress-free experience.

How To Stay In Control

  • Hire A Good Architect
    Finding a qualified architect or contractor can be challenging, but well worth the hunt. A good architect will listen to your ideas and draw up a thoughtful, detailed plan that encompasses your dreams while being realistic. Stay away from those who don’t consider your budget along with those who want to cut corners. Good contractors will also keep detailed records of costs, spending, and changes so your budget isn’t stretched too far.
  • Define The Scope ASAP
    Once a great architect is found, make sure you think out the entire project and everything that could come up during the construction phase. Have a complete walk through to think about complications, your evolving living situation,  and even the needs of future home buyers. These are important things to consider and address at the beginning of any new home construction. That way, any costs associated with these questions can be factored into the budget. Plus, you and your architect will have an even clearer understanding of your expectations written down.
  • Per Square Foot Estimating
    You can get a better feel for the costs of a home by looking at the cost per square footage. However, all rooms are not created equal. A new kitchen with modern appliances, cabinets, countertops, piping and expensive finishings is going to cost more per square foot than a bedroom with just carpeting and electricity. Knowing this ahead of time will allow you to create a more realistic budget.
  • Consider Complexity
    When drawing out your home plan, you’ll realize that the more elaborate, the higher the costs compared to a simple house. Factors that influence these costs include house shape, angles, roofs, windows, porches, decks, and levels. For example, French Country roofs tend to be more expensive because they come hipped and pitched, which requires more lumber, instead of the traditional gabled roof. Plus, the labor for this kind of style can get costly.
  • Be Realistic
    It’s important to be honest with what you really want in your new home. Think about what kinds of flooring, countertops, cabinets, and other fixtures would make your home perfect. Then consider their costs and how they make up about 30% of your budget. Can you afford what you really want or can you cut down on these expenses? Being genuinely clear to yourself and your team right from the beginning establishes a common goal. You should also understand that mishaps will happen during construction and you might need some extra money to cover costs. Set aside 5-10% of your budget on these setbacks so you can continue without delay.

Effective new home construction planning creates a positive experience for everyone involved. Having detailed drawings, clear communication, and awareness of the entire process will give you the necessary insight to control spending. Furthermore, you’ll be unfazed by any bumps in the road because you already knew they were coming!

Be sure to surround yourself with quality teammates who understand your vision and will work hard to achieve your goals without compromising your budget.

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