Archive for the 'Building Budget' Category

Jan 30 2013

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3 Ways to Control Home Building Costs – The House Plan Shop

Home under ConstructionWhen building a new house, one of the most important things you can do is control your building budget. Without careful planning, it is easy to go far over budget when building a home. Beginning without a building budget, making changes during construction, and poor craftsmanship are just a few of the things that can blow your home building budget or cause extra expenses.

 

1. Most homeowners who embark on a home building project rely on obtaining a loan from a financial institution. This requires careful planning of the building budget up front. Begin by getting a feel for what things are going to cost. For example, visit several local lumberyards and find out what materials are available and their costs. Talk to the lumberyards about buying materials in bulk. Often, lumberyards will offer a better discount when all of the materials for the home are bought at the same time. This will slash your material costs. Also, compare the costs of luxury items verses budget items such as light fixtures. If a budget fixture is just as visually appealing, comes with a good warranty and serves the same purpose as the luxury item, choose the budget item. This tactic will cut wasteful spending tremendously. Using methods like these will help you save money and establish a building budget that works with your loan.

 

2. Next, go over your house plans carefully and discuss everything about the design, the floor plan, special elements, etc., with your builder before construction begins. It is important to have all the details worked out with your builder ahead of time. Once construction begins, making changes to the exterior of the home or the floor plan can become very costly in a hurry. When changes are made during construction, it often requires the builder to tear down or redo some portion of the home that was already complete or near completion causing a waste of time, money, materials, and labor.  

 

3. Finally, you might not be able to control the local labor costs, but you can control who you choose to do the work on your new home. Interview potential builders, ask to see their credentials, visit other jobsites where the builder has worked, and ask the builder for references from past clients. Researching the builder you hire (and the subcontractors) will help you choose the most qualified and skilled builder you can afford. Your new home is a major investment. You don’t want to ruin the experience of building a new home with poor craftsmanship. If you end up hiring an inexperienced builder or subcontractors, it is likely you’ll run it to problems quickly. Poor craftsmanship means you’ll be spending more later to repair things that were not properly built, constructed or installed during the construction of your home.

 

If you’re planning to build a new home, follow these tips to control your building costs.

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Jul 27 2011

Profile Image of Curtis Cadenhead

How Much Does it Cost to Build This Home Plan – The House Plan Shop

House Plan 057H-0022Before a customer makes a final decision on the right house plan or purchases blueprints, we are often asked how much it will cost to build a particular home. The experts at The House Plan Shop understand this is an important factor in making a final decision, as customers want to be sure they can afford to build the house of their dreams without going over budget. However, we know the costs for materials and labor vary greatly from one state to the next and sometimes even within the same city, making it impossible for us to provide an estimate for one of our house plans in any specified location. We can’t possibly know all the going rates for materials and labor all across the US and Canada. So, how can you get an estimated cost to build your desired home plan? We recommend checking with a few local builders or lumberyards. If you opt to check with builders, you can look in the phonebook, online or check with other family members and friends who have built a home in the past. Builders and the professionals at lumberyards deal with construction and materials costs on a daily basis and know the going rates for materials and labor in your particular area. Just ask for an estimated cost to build. Often, these professionals will quote a dollar amount per square foot. Be sure to ask what this quote includes as sometimes it will not include the heating and cooling system, foundation materials and a few other things. Checking locally is the best way to get an estimated cost to build for any of our house plans. We know it is a little more leg work for you, but, the estimate you obtain locally will be more accurate than any estimate we could provide because our estimate would be a guess.  

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Apr 14 2009

Profile Image of Curtis Cadenhead

Determine Affordability when Planning to Build a New Home

Filed under Building Budget

Have you decided to take the plunge and build a new home? If you think you are ready for the challenge, the following tips will help you make the best decisions when it comes to building a new home you can afford.

  1. Begin by getting several bids or estimates from contractors for the construction of the home plans you’ve selected. Check with lumberyards and family and friends for recommendations of reputable builders in your area. Don’t assume that the cheapest estimate is saving you the most money. Be sure to compare the quality of materials used in each estimate, and note differences if one bid includes something that another one does not.
  2. Determine what you can afford. Do your research by looking at homes that are comparable to you future home in size and cost to build and estimate your total monthly housing costs including utilities, taxes and homeowner’s insurance.
  3. Find out how much you should expect to pay in closing costs. Closing costs include a variety of fees such as fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowner’s insurance.
  4. Determine how your future home fits into your budget. Financial advisors recommend that buyers spend no more than 28% of their income on housing costs annually.
  5. Finally, look at the big picture. Building a new house is a great way to build wealth, but maintaining your investment can involve a lot of labor and be expensive. Consider what you will spend to furnish your new home, purchase appliances and landscape your yard. Consider the costs of unexpected expenses such as plumbing problems or roof repairs in the future. Will you be paying a lawn service to mow the lawn once a week or do you plan to save money by doing it yourself? It is important to plan ahead for these costs and expenses rather than finding you’ve drained your bank account and you still haven’t purchase a washer and dryer and the grass in the front yard in two feet tall.

So, before you jump feet first into building a new home, be sure to do your homework where finances are considered. Select and build a home that will fit your budget rather than a dream home you might not be able to afford.

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