Building your own home is an exciting endeavour. What’s not so exciting, however, is seeing the costs add up. One of the most challenging parts of building a home is staying on budget. It’s hard not to get carried away upgrading and adding on as you go. But overspending will surely take the fun and excitement out of the whole process.
You can avoid this scenario by using these tips for staying on budget and saving money on your custom home cost.
Tips for Staying on Budget and Saving Money on Your Custom Home Cost
These tips will not only help you stay on budget but also save money on the overall cost of your custom home.
1. Research & Plan
First, before you even start the build process, you need to thoroughly research and plan everything. There are a number of things you’ll want to research prior to engaging a custom home-building company, including:
- Custom home builders
- The cost of a custom home
- Building materials and prices
- Different finishes and their costs
- Permits and legal measures
Then, once you’ve looked into the home-building process in detail, make a clear plan. Your plan should include your design, finishes, materials, furniture, etc. Basically, you want an in-depth outline of the entire process with all the costs laid out ahead of time.
You will use this plan to refer to during the building process. Ideally, you will also stick to it when you’re tempted to spend more money on extras or changes.
2. Be Realistic About Costs
The next thing you need to do is be realistic. There are a lot of costs associated with building a custom home. You need to be realistic about them and clear on what you’re willing to spend. Yes, a custom home can cost less than a pre-made house, but it doesn’t mean it’ll be cheap.
When outlining your plan, factor in the land, architect, permits, legal fees, landscaping, and all the minor details, too. It’s better to be as accurate as possible with these estimations, so you should do your research and get quotes on what you can.
There will be a long list of costs so it’s important to come up with a realistic budget. Never underestimate the costs. In fact, you’re better off overestimating. This way, you’ll be even happier if you come in under budget.
3. Establish Priorities/Non-negotiables
In order to stick to your budget, you’ll have to prioritize. This part also means coming to terms with the fact that you might not get every detail exactly the way you want and that you may have to make some sacrifices.
Decide which items you want to splurge on as well as “must-haves” – i.e. your non-negotiables. However, keep in mind that in certain cases, it might make more sense to opt for the standard version of something and upgrade it later.
When you do this, consider the return on investment. For example, instead of spending on lavish finishes throughout your house, you could opt for a finished basement which you could rent it out if you needed to. This decision provides you with a source of income, whereas costly fancier finishes could be added later.
Once you have your list of priorities, keep it, and don’t deviate from it! Doing so is what causes custom build costs to spiral out of control.
4. Decide on Finishes Before Construction
As part of your initial plan, you should decide on all of your home’s finishes before breaking ground. When you do this, you’re less likely to overspend. Surprisingly, interior finishes take a huge chunk of your total building budget. So, if you’re not careful and committed to your decisions, you could be shocked by a much higher build cost.
Make sure you’ve researched all your options and planned every penny down to the last bathroom tile and kitchen tap. Don’t deviate from the plan by upgrading or adding more expensive finishes as you go along.
*We’ll take this moment to remind you that the most expensive option isn’t always the best, just as the cheapest option isn’t always the right decision. While the most expensive item doesn’t necessarily mean it’s the best quality, the cheapest option could cost you more later. For a balanced approach, focus on “good” products across the board, and perhaps you could splurge on a few finishes for the “best” option.
5. Track Your Spending
Even though you will have a detailed plan outlining your whole build process and every expense, you’ll also want to track your spending along the way. Keep an eye on your budget through each phase of the build and track expenditures, flagging any overruns as they occur.
To do this, we suggest you map out your expenses on a monthly basis and write everything down so you can keep your budget and the project organized and on track. This way, if something ends up costing more than planned, you can make the appropriate adjustments elsewhere to stay on budget.
6. Work with the Right People
Finally, make sure you work with the right people. You want reputable professionals to build your custom home so your vision of your dream home becomes a reality without any (nasty) surprises. Hire professionals who respect your vision, prioritize your non-negotiables, and can work within your budget.
The right people should have no problems answering all your questions. Find professionals, whether they be architects or builders, that understand your vision and can communicate clearly. When everyone is on the same page from the beginning, you can avoid costly mistakes and miscommunications.
You also want to ensure the home builder can complete your house in a timely manner. A build that drags on or is delayed can be costly for you.
Omega Homes Has a Solid Track Record
We understand that building your own custom home is something that you’ve dreamt about and spent your whole life working toward. You want someone you can trust and who can get the job done right, according to your vision, budget, and timeline.
That’s why so many Ottawa area residents work with Omega Homes. Our clients trust us to build not just their house but their dream home. Our portfolio of homes speaks for itself, but we’re also a Mike Holmes Approved Homes Custom Home Builder.
We can’t wait to get started on building your custom dream home!
We don’t just build you a house, we build you a home. We assemble the top architects, designers, and trades personnel to work in conjunction with our experienced and licensed staff in order to make your dream home a reality. As a Tarion Custom Home Design-Builder, we feel it is our responsibility to be adaptable to each client’s individual needs. There’s no job we can’t handle, and we will do whatever it takes to meet your requests with high-quality results. Our architects and designers are always looking for new and exciting challenges, so the only limit is your imagination.