The first step to take when budgeting to build a new home is to come up with a firm figure of what you can AFFORD. If you are looking to finance the project, this is an even more important process. If you are pulling from savings, it will help you stay focused and on task. Follow these three steps and budgeting to build your new home will be less stressful and offer the platform you will need to succeed.
Get a Good Handle on the Costs for each element of the remodel. There is a lot of information available that can give averages on the “costs per square foot” of everything from flooring to installation to granite. Costs vs. Value reports also help you understand the national average on common upgrades such as room additions and kitchen and bath remodeling. Check out your local website of the National Association of Home Builders to nail down the prices on your wish list.
Make a Wish List to determine what you HAVE to have have vs. what you WANT to have. You HAVE to remodel the bathroom, but you WANT a full slab shower stall. Pricing both will help you determine what you’re willing to fight for int he budget.
Get Quotes from Contractors now that you have an idea pf what you budget is and the things that you hope to include in your new home. Your contractor is the key to fine-tuning the building budget. Be as specific as you can at this point, or expect lots of change orders along the way. Make your selections now – granite countertops or manufactured quartz? Tile or wood floors? All of these options will affect the bottom line – so the more details you offer the more solid your bid will be. And, get three ITEMIZED bids so you have room to compare. Budgeting to build can take time up front but is worth the effort in the long run.