3 Tips to Start Strong: Tip 1 Budget
The earlier you deal with the budget, the more efficient the project will be.
The first step to start your building project strong is to visit your financial institution. Figure out how much you are able to spend and willing to pay monthly. Once you have this figured out, it's important to clearly communicate this to your builder and drafter.
Your builder will be a great resource in determining the square footage you can build with your budget. Often times, homeowners find a floor plan they love, but after it's drawn and sent out for bids, they find it's 200 square feet over budget. Then it's back to the drawing boards.
Take the floor plan LLR-136, featured above, for example. This is a 1920 square foot house. A home this size could cost 15-20% more than a similar style home of 1600 square feet, found below. To put that into dollars, that could be $50,000 or more! While there are a lot of factors that determine the cost of a house such as trim styles and product quality, square footage is the biggest factor to consider. By talking with a contractor and drafter to start, the process will be much more efficient.
While we’re on the topic of estimates, watch out for house estimates posted online. The cost of building varies greatly between different regions, so quotes found on a website are not reliable. Also, the markets change constantly. A quote that was posted last year will not be accurate this year.
Of all the decisions you'll have to make in the building process, financial decisions have the greatest impact on your project. If you take the time to do this first, you will be sure to start the process strong!