When someone says “dream home” a custom home is typically what comes to mind. A home so perfectly suited to their personal style and uniqueness that it can only be conceptualized in a dream and brought to life by a custom home builder.
If you can’t stop fantasizing about your future dream home, you’ve probably started searching the internet for how to create a budget for your custom home. Although your budget can fluctuate substantially depending on your personal style, neighborhood, and home specifications, strategizing your budget makes the money conversation a whole lot less intimidating.
The first step to take in creating your custom home budget is to categorically divide the expenses. Doing so will give you a clear picture of where to allocate more or less budget and help reduce sticker shock at the total price of building your dream home.
What’s the Budget Breakdown for a Custom Home?
There’s no right or wrong way to allocate your custom home budget. For every home builder, the priorities are going to be different. But one thing that is the same for everyone is that once you start living in your one-of-a-kind dream home, the spend was a worthy investment.
Let us break down the cost of a custom home. Planning the budget of your dream home can be divided into three major expenses.
1. Land Expenses
The very first requirement of a custom home is to have a piece of land to build it on. For some, land may not be an additional expense. For others, this might be the priciest line item in the process.
Land expenses vary depending upon the neighborhood and other criteria such as whether the lot is corner facing or road facing. Have you given thought to what your perfect property looks like and how big it is?
Once you have an idea of where you want your dream home to be built, start by doing your research to get to know the market value. Selecting the right property to build your home on is a critical part of the design and build process.
2. Interior and Exterior Designing Expenses
Once you have your land ready, your next step is to hire a home builder for the project of creating your custom home. The prices or quotations of a residential builder will vary depending upon their scale, quality, experience, and of course, the project scope
3. Finishing Expenses
Finishing is last, but certainly not least of custom home budgeting. This is also an area of your budget where unforeseen expenses may arise; however, these are also the expenses that make your home as unique as you.
Will you choose subway tile or marble? Opt for heated floors or maybe a steam shower? The possibilities here are endless can alter your budget significantly.
Remember that you are not alone in this phase! Your design and build partner can help you anticipate and prepare a budget for construction that anticipates additional expenses or changes in project scope.
Final Verdict
The cost to build a custom home will vary depending on the project. Creating a strategic budget will help you stay on track with your total overall budget for your dream home.
