Establish a Solid Budget for Your Dream Home

Everyone’s dream is to build a house according to his needs and requirements. It is an important step in your life, and probably the biggest investment, so the entire process must be carefully thought out and calculated. Therefore, it is natural, as a first step in your project will the establishment of a solid budget.

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Whether you are buying a type of subdivision home or you prefer to build your own home, it is imperative to be well informed about the funding process of your builder and also to have a perfect control of your finances.

Budgets are usually the most difficult part of the whole process to tackle. It is a fatal mistake to consider that $100/square foot will cover all costs. Today, a typical budget can easily reach $150/square foot, even $500/square foot. Everything depends generally on the complexity of the construction and the degree of finishing works.

Take your time, ponder carefully and go systematically, through all stages and elements involved in building construction, together with your builder. Do not be afraid to ask all the important questions that you consider and to establish the priorities.

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As an example, in recent years it is observed again an increasing tendency for hot water heating (radiant heating), although overall costs are higher. The explanation is very simple. Radiant heating is more efficient than other heating types.

There are several ways to reduce the overall costs of your new home. One of them is to install cheap doors and windows, which is not really, a quite good long-term option. In five or ten years, you may be forced to replace them with new ones, not to mention the fact that they are fairly poor quality. On the other hand, higher quality doors and windows have at least 20, 30 years lifespan.

In fact, the best thing is to think strategically and long term. It is good to start to limit yourself to a minimum. In this way, you can be sure you stay within your budget. It is highly recommended to buy and upgrade things that you are sure, you are not going to replace or change long time from now such as roof finishes, exterior finishes, windows, doors, wiring and the mechanical. The most important thing is that the building to be built and functional. It is enough time later to renovate and upgrade your bathrooms and kitchen. This is the best strategy when you need to fit within a strict budget, and this budget does not allow you to do everything from the beginning. In this case, it is wise to plan your project in construction and finishes stages.

However, this planning requires you know very well what you want. It will be smart to prepare a wish list to show to the architect and your builder at the first meeting.

It is critical that you fully understand the importance and significance of a realistic and practical budget. It is wise to add at least 10% for unexpected costs.

If you have already established with your builder all expenditure on building stages, make sure you will have all the materials and finishes within the limits of the amount fixed by mutual agreement, otherwise you will be direct responsible for the extra costs. For example if you have countertops allowances of $3,000 but the granite countertops you want will cost $5,000, you have to pay the difference.

Therefore, it is vital to take your time and weight carefully every step. Budget from beginning all of the options, because a poor planning is the cause for cost overruns. Only in this way, you can stay on the tracks and can achieve your desired dream, a beautiful house.

Let’s see together a list with several items that can make increase the overall cost of your home:

– the cost of the land; engineers; architectural design; Geotech;
– permit fee; excavation; foundation; temporary power hookup; concrete cost;
– framing; plumbing; electrical; HVAC; security system; interior design;
– drywall; masonry; insulation; flooring; cabinetry; vacuum system;
– windows; doors; skylights; exterior finishes; baseboards; moldings;
– bathroom fixtures; kitchen fixtures; light fixtures; laundry/kitchen appliances;
– downspouts; gutters; landfill fees/waste removal; landscaping; etc.

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