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How to Stay on Budget When Building Your Custom Home

Building your own home is an exciting opportunity to bring what you’ve always envisioned to life. Creating a budget for your dream home, that includes everything from the land to the final touches can seem like a daunting task. With a bit of planning, there should be no surprises when creating your budget. Here’s how to do it.

Let your “must haves” guide you:

To stay on budget when building a custom home identify what is most important to you so you can prioritize where to spend your money. Are you the type of person that loves details, like custom cabinets or natural stone features? Then maybe pare down on the square footage for your home. Conversely, if the size of your home is the most important factor, opt for details that have a lower upfront cost but can be modified down the line if you so choose. Some areas of savings include prefabricated cabinetry, standard appliances, and carpet instead of hardwood.

Consider all costs:

When building your own home, there are the costs you’d expect, like excavation, labour, and materials. If you want to stay on budget, don’t forget the expenses that are easily overlooked such as furniture, window coverings, utilities and the hiring of movers and cleaners. It can add up quickly.

There are also the architectural designs and building permits that you’ll have to acquire prior to building your home. Also, don’t forget property taxes. A larger plot of land typically means larger monthly or yearly expenses. An experienced home builder can provide insights and offer guidance around costs incurred beyond the construction itself.

Choose and finalize as many finishes as possible beforehand:

You may have heard stories from people who’ve built custom homes going over budget by a significant margin. This doesn’t have to be the case, and going over budget can be curbed with sufficient planning from the outset.

You can stay very close to your budget if you are clear with your home builder about everything you want, from the caliber of finishes to the landscaping details before home construction begins. That way, the builder can give you an accurate quote and there will be fewer surprises to your bottom line.

Beware of scope creep:

When building a home, it’s easy to get into the cycle of thinking, “while we’re at it, let’s add…” or, “it’s only a couple hundred dollars more…”. If you do this a few times over the course of your build, your budget can really take a hit. If you’ve changed your mind and want something outside of your initial plan, ask your builder to help you find a suitable replacement. Or, if you realize there’s something you can’t live without that will blow your current budget, ask your builder if they can find savings in another area. Remember, you created a budget, and the goal is to stick to it.

Hire the right builder:

Hiring a qualified and well-regarded builder is invaluable to the home-building process. They have the experience to provide accurate information about your budget, and will give you tips on how to save money and still create your dream home.