How to Budget for Building Your New Home

Whether you’re buying or building a home, deciding on a concrete budget is the very first step. And it’s also the most important step. When you’re building a home, your overall budget will come up often. When you’re deciding on fixtures and features for your home, you’ll refer back to your budget to decide what you can afford.

Use these tips to help you create a reasonable budget and avoid any roadblocks in your homebuilding project.

Beautiful living room space.

Set Your Homebuilding Budget Early

Start putting your budget together early! In this pre-planning phase, you need to decide the total funds you have to work with. Having a goal number in mind for your budget gives your homebuilder an idea of what they have to work with. This will make it easier for you to make decisions as all the details of your budget start coming together.

When you’re choosing your total budget, you’re probably looking to get the most that you can afford. You are building your dream home, after all! So decide the maximum amount you are willing to spend on your new home.

If you’re not sure what that number is, work backwards. Take a look at your current monthly expenses and decide how much you’d be willing to spend each month on your mortgage.

Get an Idea of What Your Budget Gets You

You know what you want to spend, but what exactly does that get you? Once you know how much you’re willing to budget for your new home, it’s time to start working with a professional home builder. They will help you understand the size and scope of the home you can afford. At Costa Homebuilders, we offer a complimentary budget consultation to help you get a visual of the kind of home you’ll be able to build.

Then, if you decide to move on with your home building project, it’s time to acquire land or a lot, if you haven’t already. The land will be a major consideration when planning structural elements of the home, as well as the placement of the home. Don’t let that worry you. Costa Homebuilders has Build On Your Lot Specialists that can help you find available lots, as well as ensure you have a buildable lot that is suitable for your new home.

Determine Your Must-Haves and Nice-to-Haves

Once you and your homebuilder start designing your new home, you’re going to have a lot of decisions to make. You’ll need to decide what rooms you want to include, what amenities are important to your family, and what kind of materials you want to use in your home’s construction.

There might come a time during your homebuilding project where you have to make some compromises. Perhaps your budget doesn’t allow for the home movie theater you’ve always wanted, or the indoor pool your kids are begging for. That’s why it’s helpful to make your list of “must-haves” and “nice-to-haves” from the very beginning.

If you know that your new home must have a large office and storage space for at-home business, that should take priority. Knowing where you’re willing to compromise and where you won’t budge helps you and your homebuilder decide what to include in your home.

You might be surprised how many of your nice-to-haves fit within your overall budget! Working with a professional will give you peace of mind. Be confident in knowing that you’re getting everything you want, while still leaving some wiggle room.

When you work with Costa, we will start by looking at your wishlist and designing a home that checks off as many of those “nice-to-haves” as possible while staying within budget. Then, we will help you manage costs throughout the entire homebuilding process, as well as make sure your project stays on track.

Understand What Your Builder Offers

At Costa, there are some features included in our homes that other builders charge extra for.

We include these items at no extra cost to our clients:

  • 80-90% brick exteriors
  • Garage door openers
  • Floor drains in basement and garage
  • Spray foam insulation
  • Concrete sidewalk and driveway
  • Deck or Patio
  • Ceiling lights in all bedrooms
  • Separate tub and shower in master bathroom
  • Large concrete footers for a more stable structure
  • Laundry tub
  • Exterior hose bibs
  • Exterior spot lights
  • Basement rough-ins for future bathroom
  • Engineered lumber

Know How Your Builder Handle Changes in Your Plan

Change happens. And that’s okay, as long as long as you have a good home builder who can plan for it. Your builder should be flexible enough to accommodate your changes without disrupting your project timeline.

If you decide to change one of your nice-to-haves into a must-have, we’ll let you know how that will change your overall budget. We want to make sure that you are comfortable with the price of your home. If you aren’t comfortable with the number we give you, we will help you find a more affordable solution to making your dreams come true.

A well-planned budget is an essential tool to help control costs, as well as prevent you from overspending or allocating money to projects that can wait until a later time when the build is complete. Keep your expectations reasonable, and keep an open line of communication with your builder to get the best results. And most importantly, use your builder’s experience and knowledge to your advantage. Allowing them to control and monitor your budget will give you peace of mind during your project.

If you want help determining your budget, or seeing what kind of home you can afford, get in touch with us today for a free budget consultation.