How to budget when building a home

To build your own homestead means to bring an idea to life. It goes beyond the construction cost per square foot to the formulation of a budget. It must meet your needs and wants. The common problem faced by those ready to build their own home is the issue of over-expenditure or underestimation.

Some features are often added to a house which is later dimmed unnecessary for resale value. This mean extra costs happening in the beginning. On the other hand, a smaller budget than approximated can leave your house with less space and DIY projects. What you need is a proper budget plan with the best value and here’s how to start that process:

Preconstruction cost analysis:

Before everything gets started, the approval of loans stands as primary importance. At Homestead Homes, we offer loan experts who can guide you along this process. Another thing to consider is taxes and land property. You want to understand all of these items will be need to be included into the price plus subcontractors, materials, designs and more.

The best floor plan

The next step after deciding the preconstruction cost analysis is to figure out your home plans! The best part about when you build your own homestead with Homestead Homes is you already have the home plans already done for you. Now, you can adjust these floor plans but this will increase the time frame and price of your new home. It’s important to remember that before and during the building process.

Land prices

Since land value increases with a steady decrease in house value, the cost ratio of land to the house is always important. The land price comprises nearly more than half of your total budget, so deciding on your square foot requirement is important. There are also the site clearance costings and permit costs like zonal fees. Again if you have to demolish an existing house, there are extra costs to be paid. A cost comparison with recently constructed houses in your neighborhood can turn out to be helpful. 

Materials

When you’re your own general contractor, you pick subcontractors to work underneath you! Homestead Homes offers a list of trusted subcontractors that we have worked with over the last 22 years. No need to find subcontractors who know the best material deals. Furthermore, at Homestead Homes we offer ALL of the building material you'll need to build your dream home. 

These four factors are important when deciding on the budget for your new home! Don’t give yourself a smaller or bigger budget than you can afford because of items like design and materials. Do you really need a higher ceiling?

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We are building in the following states Iowa, Nebraska, Colorado and others! For more information, contact us today.