Written on
January 5, 2017

Custom Built Homes: How to Avoid Over-Budgeting Yours

Settling on a custom built home is a big deal– you're finally going to be able to say that you're living in a place that's 100% perfect for you.

When people start on this journey, it's easy to get overwhelmed and reach for the stars. But you'll want to stay grounded and make sure that you don't go over-budget.

Structure Build Design has been helping future homeowners in Toronto achieve their goal of getting a custom built home. For more information, make our blog your next stop. 

This guide will help you stay on track with your custom home and make sure that you stay within your budget! 

How to avoid over-budgeting your custom built home

About 50% of people who begin the process of building a custom home don't complete their project. This is a stat that you don't want to fall into.

But, why does this happen in the first place? Poor budgeting.

Many people don't take all of the details into account and end up over-spending during the building process. Ultimately, some people fail to get the funds that can finish their custom built home. 

We're going to break down details you'll want to consider as you build your budget so that you'll be able to enjoy your home for years to come. 

Work with a professional team who can help you structure your planning

The most important part of setting yourself up for success with your custom built home is making sure that you are working with a quality team to help you.

Because putting together all of the details to create a good custom home is a difficult task, you won't want to go it alone if you haven't worked in the industry before.

Teams like Structure Design Build know exactly what you'll need to take into account, how much certain work and designs will cost you, and what kind of budget you need to realistically have.

If you want to avoid being part of that terrifying statistic, this is the best way to begin working on your custom home the right way. 

Know your realistic budget

To start off this guide, let's begin with a simple tip: you will need to know what your realistic budget is.

This means you'll be able to support your family and pay regular bills while paying off the cost of your new home. 

Having a maximum number in mind allows your project to be reigned in!

Factor in the right big costs 

Once you are working with a team, make sure that you begin to communicate clearly so that both of you are on the same page.

This means sitting down to factor in the big costs of your custom home.

Purchasing the lot is perhaps one of the biggest costs you'll encounter. Following that, plan for land development and any landscaping you'll want to finish. The cost of building your home will then take up the rest of your budget. 

If your team is able to piece together this financial puzzle, your result will be an excellent custom built home with no roadblocks in your way. 

Outline everything you absolutely want

Here's the thing with getting a custom home: you'll need to be straight-forward with everything you want to include.

This is the stage where you've already budgeted for the big costs and now you and the team are going through with a fine-toothed comb.

Here you'll talk about the space and rooms you want and the kinds of "extras" you're expecting to be part of your home.

That long driveway and pool? You'll need to discuss how these costs will impact your budget and what you can do to accommodate them. 

Avoid adding more to your wishlist

Once a home starts being built, some homeowners will start asking for additional items or customizations that weren't previously discussed.

This can happen because the homeowner didn't remember that want before. Or, it could be because they see the builders working on the patio– so why not add an awning to make it even more luxurious? 

Adding things here and there really eat away at a budget. Because a specific budget and plan were set in place prior to building, try your best to stick to that plan as time goes on.

Remember that additions can always happen down the line after the entire project is completed and you have a chance to reflect on your finances.

By avoiding the temptation to add more and more, you can successfully stay within budget and protect your project from needing to be paused. 

Set aside money for your finishing touches, like fixtures and furniture

So, you have all of the major components settled on and you've avoided the temptation to expand your project– you're almost at the finish line!

But don't forget to take into account the finishing touches that your home will need.

This includes the types of fixtures you'll want to style your kitchen and bathroom with. 

Specific lighting fixtures will need to be selected and all of these small details need to fall into place within your budget. 

Leave some wiggle room for furniture and larger finished like countertops and cabinets that you'll be deciding on and you'll be one step closer to staying within your budget.

Plan for unexpected situations

Like any budget, you'll want to make sure that you have additional money set aside in case something unexpected comes up.

While working with custom built homes, you never know what may happen throughout the land development and building process.

That's why it's better to narrow your budget down a little bit to be able to continue if something happens along the way. 

Once everything is in the clear, you can always put that money towards those finishing touches or perhaps a final upgrade that you know can be safely funded!

In the end, Structure Design Build is here to make sure that you get the home you want without having to worry about whether or not your budget is sound.

Our experienced team can help you create a home to match any style and ensure that it's built to last. If you're looking for a quality team in the Toronto area, contact us so that we can discuss your exciting custom home project! 

Article written by:
David Le Prevost