3 Things To Know About Budgeting For A Custom Home

Friday, September 8th, 2017

custom home builders in Amarillo Texas

When planning to build your custom home, you will likely find yourself struggling between designing your property and planning your budget. Unless you have an endless supply of cash, you likely have a budget in mind that you want to spend on your dream home.

Fortunately, your custom home builder can guide you in the right direction to help you determine a budget. Finding a builder you trust can help you get affordable design drawings and keep you on budget. You don’t want to pay too much money for a set of drawings you have no use for. Before you choose a custom home builder and set a budget, there are a few things you should keep in mind.

Where to start your budgeting

As you start your research for a potential custom home builder, remember to ask the right financial questions. Asking questions about the “cost per square foot” may not get you all the information that you need to make an educated decision. The cost per square foot of a home with minimal features and a simple exterior may end up being reasonable. However, that cost may be half as much as a custom home with luxury features like a 12’ ceiling basement and kitchen with double islands.

Understand the bidding process

One important thing that you should understand is how your custom home builder develops their budget. If they are planning on giving you a hard bid, then you may not know the cost of each room and detail of the home. This could affect your ability to make the final decision on upgrades or change orders once the project starts.

A cost plus bid will be more detailed and show you where your money is going. Your custom home builder will be making money at an established percentage above the project costs, usually 10-20%. You typically have more clarity with a cost plus bid, so you will have the ability to know when it is okay to splurge. It is important to know costs upfront, so you can determine the final budget early rather than after developing your plans and designs.

Know your financial responsibilities before building your custom home

After you have done your research, make sure to have your finances in order before you invest money into your custom home design. Your builder will want to know that you have the ability to follow through with the project. Discuss design options with your builder and make an established plan based on only what you can afford.

Communication will be the key to making the home building process easy, rather than filled with twists and turns. Do your best to keep communication open with the professionals that you choose and make sure they can keep you informed throughout the entire process. Even if surprises happen, having civil conversations with your custom home builder can help you overcome them.

Luxury custom home builders in Amarillo, Texas

At Hunter Corp, we value our clients and the confidence they place in us to build high quality, luxury homes. Our designs are unique and one-of-a-kind and we do everything we can to make the building process as easy and enjoyable as possible.

Speak to one of our experienced professionals about how we can help you build the custom home of your dreams. Call us at (806) 418-2744 or Contact Us by email today to learn more about Getting Started on your new home. We are licensed in Texas, New Mexico, Arizona, Colorado and Hawaii.