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Nov
2021

How to Build a New Home on a Budget: 6 Tips to Stay on a Budget When Building a New Home

How to Stay on Budget When Working with Custom Home Builders

The time has finally come for your new home. You’ve found the perfect home plan for your family and you’re ready to build your new home. You can picture it now, watching the kids play in the yard from your front porch or sipping coffee in your open concept kitchen with those countertops you’ve always wanted. How exciting! You’re ready for it, the new home of your dreams. With a home plan picked out, it’s time to work with your home builder to build your new home.

Choose Affordable Home Builders to Start A Home Build on Budget

With all of these daydreams and wishes for your new home, how can you possibly stay on budget?! Therefore, firstly it is important to choose a home builder that is consistent with your budget from the beginning, that way you know your home build is in your budget range and you’re starting off in the home building process on the right foot. To be honest, it’s not always easy to stay on budget when building a new home. There may be unexpected delays or occurrences on your land that have to be taken care of before the homebuilding process begins. But fret not, Madison Homebuilders can help you through it. For your new home in NC and SC, we’re here to help you build an affordable home and work with you through the entirety of the homebuilding process. To stay on budget it’s important to keep these tips in mind:

  1. Don’t Get Too Carried Away with  Home Features
  2. Consider Alternative Home Upgrades
  3. Develop Good Communication With Your Home Builder Team
  4. Prepare for the Unexpected During Your Home Build
  5. Carefully Review Your Construction Contract
  6. Avoid Construction Change Orders

Don’t Get Too Carried Away with Home Features

It’s fun to dream about all of the things that would be nice to have, but usually we don’t need everything we idealize. This applies to ideas about a new home as well. To make sure your new home matches your lifestyle, make a list of your must-have home features and the nice-to-have home features. For example, maybe you must have a half bath near the living room but it would be nice to have a screened-in rear porch. Maybe you must have both traditional and USB outlets in your new kitchen but it would be nice to have a walk-in closet in every room. Each family member might have a different must-have versus nice-to-have home features list. The less you try and customize from our floor plans, the easier it is to stay on budget. We suggest you and your spouse each create a list and come together to compare and decide on your must-haves together after comparing those lists. It is likely some of your items will line up, especially if there are features that you’ve learned are must-haves from your current living situation. If you have children, we recommend getting them involved in some of the fun. The kids might have home features in mind that you didn’t even think of but would be helpful to have in your new home. It is ideal to have this conversation with your family before talking to your home builder, so you go into the home building process with a clear idea of the home features that are important to your family.

Once you have each family member’s new home ideas, keep the big picture in mind to narrow down your must-have list to home features that are truly helpful for your family’s lifestyle. Stick to those must-have items and sprinkle in some of your nice-to-haves to have some fun and get some of those dream features. Knowing the home features you must-have in your new home can not only help stick to your budget but also help avoid some conflict and frustration with family members during the exciting home building process.

Enjoy this process but try not to get carried away that it affects your budget. It will make everyone happy to live in a new home you can enjoy, appreciate, and afford. In the end, you’ll have the perfect new family home. At Madison Homebuilders we want you to have a home you’ll love to live in and proud to show off, so we provide durable, timeless, beautiful home options for you to choose from. However, if you have your heart set on something else, let us know and we’ll make adjustments and help you achieve your dreams. Although we are not a “custom” home builder, we still want to hear what modifications are essential to your family.

Consider Alternative Home Upgrades

While quartz countertops may have topped your must-have list, but you forgot you also wanted a ceramic tile shower in the master bedroom, which increases your budget. Don’t automatically splurge! Instead, consider alternative home options to make a compromise to stay closer to your budget. For example, maybe a dream master shower is more important to you than quartz countertops so perhaps you use standard granite for your countertops instead, which you also love and allows you to stick closer to your budget. This combination may also improve the functionality in your new kitchen. Keep an open mind to explore your options because you might be missing out on home features that will give you even more functionality once you live in your new home.

Develop Good Communication With Your Home Builder Team

Once you start the home building process, your family will have a lot of communication with your home builder team in the next couple months. Your Building Consultant is experienced in home building and will help guide you through important decisions in the home building process. Now that you’ve made your choices for home features, trust your Building Consultant. Listen to your consultant’’s advice and be open to communicate about your ideas and your budget, your contractor is there to help you achieve what you want for your new home. Communicate your must-have items, nice-to-have items, budget, and any other details about your land or otherwise to your home builder team in the process. You can help with communication in the home building process by telling your contractor exactly what you want, responding in a timely manner to questions and situations your contractor brings up with you, and being open minded to curve balls that might come your way in the process. Open communication and respect with your home contractor is key to a successful home build that meets your budget and works for your family. Afterall, your home building team wants you to love your new home as much as you do.

Prepare for the Unexpected During Your Home Build

It will help you to go into the home building process expecting some hurdles. There will be unexpected circumstances that occur, such as complications in preparing the land for the home build or timelines could be altered due to supply chain issues causing material delays which could affect your budget. When you are thinking about your home budget, prepare for the unexpected and factor in a little financial cushion to help you through any issues that arise. A good rule of thumb is to expect to exceed your home budget by 10% as it is impossible to plan for everything. However, your home builder team at Madison Homebuilders will help you stay on track to your target budget as much as possible.

Carefully Review Your Construction Contract

So you’ve chosen your home features and now you have a construction contract. At Madison Homebuilders, we provide durable and timeless beautiful options to choose from for your home features. We want you to have a home you love and enjoy showing off, within your budget.

Once you receive your home builders contract, it is crucial to do a thorough review. There are many reasons a construction contract review is important and one of those reasons is to ensure your budget and allowances are reasonable. Often home builders will provide an allowance when you are choosing features like cabinetry, countertops, flooring, plumbing fixtures, and more. If the bid on those features seems too low or high, discuss it with your Building Consultant in advance of when the build process begins.

Avoid Construction Change Orders

Once you’ve made your final feature choices for your new home then reviewed and communicated with your home building team to finalize the construction contract, consider your home options permanent. If you change your mind on your home selections after agreeing to the construction contract, the home materials for the original agreement may have already been ordered. Therefore, changing your mind creates a change order which will likely incur a change order fee which could impact your budget. Additionally, if you change your mind too late in the home building process, it could delay the timeline of your new home build.

Stick to Your Home Budget Through Clear Communication & A Focus on Your Must-Have Home Features

The home building process is an enjoyable and rewarding experience that you can look back on and appreciate. It’s exciting to be able to help create your new home and see it built from the ground up, especially once it’s time to see your new home and move in. By following these tips, your family can stay on budget and have a great experience creating your new home.

Contact us at Madison Homebuilders for affordable home builds in North Carolina and South Carolina. Download our free home plan book to see more details about our homes and home features. At Madison Homebuilders, we help you throughout the process to make your new home dreams achievable while sticking to your budget.

 

2021-11-24T18:03:33-05:00