The process of building a new home is exciting, but with so many decisions to make, it can also be a little overwhelming. And if you’re not careful, the costs associated with these decisions can quickly add up. In this month’s blog, the pros from Cormack Construction share 7 tips on how to maximize your home construction budget.

1. Start with a Solid Plan

A little planning can go along way. And a lot of planning can help you get the home of your dreams and stay within your budget. Start by creating a list of needs and wants. For example, you might need to have three bedrooms and a first floor laundry room, but you want a deck. Share this list with your architect or designer when creating your home’s footprint and floor plan. Together, you will create a plan that will meet your wants and needs and maximize your home construction budget.

2. Plan for the Unexpected with a Cash Reserve

Building a new home is a very detailed and complex process and surprises may come up along the way. For example, your builder could dig a well and not find water. For this reason, you should set aside at least 10% of the cost of your home in a cash reserve. This way, if an issue does arise, you’ll be able to pay for it without digging into your original home construction budget.

3. Go with a Simple Shape

To help maximize your home construction budget, choose a square or rectangular floor plan and avoid cathedral ceilings and complicated roof lines. Curves, triangles, trapezoids, and other complex shapes are more difficult to build, and more expensive.

4. Stick with the Plan

Once you’ve agreed upon your home’s footprint and floor plan, you need to stick with it. As soon as the walls start going up, changes get very expensive. To be sure you are happy with the layout of your home, ask your designer or architect for a 3-D design of your floor plan, which allows you to virtually walk around your home before construction even begins!

5. Watch Your Allowances

Allowances are exactly what they sound like: pre-allocated funds for certain fixtures, appliances, or features within your home. In most contracts, allowances for the following items are specified:

  • Cabinets
  • Countertops
  • Flooring (hardwood, carpet, and tile)
  • Light fixtures
  • Plumbing fixtures (bathtubs, faucets, and sinks)
  • Kitchen appliances

Your builder will detail these allowances in your contract, along with a price range. It can be easy to get carried away and fall in love with fixtures, appliances, or features that are just a little bit more expensive than your allowance–but remember, these choices quickly add up and can significantly increase the final cost of your home!

6. Invest in the Right Upgrades

When it comes to building a new home, there are certain areas–including your insulation, windows, kitchen, and flooring–where upgrades pay off in the long run. To help maximize your home construction budget, focus on these areas when considering any upgrades.

7. Love the Home You’re Building

To maximize your home construction budget, be frugal, but don’t go overboard. You want your new home to reflect your personality and lifestyle, and be an enjoyable, comfortable place for you and your family.

Custom Homes in NH’s Lake Region, White Mountains, and Western ME

Cormack Construction can help you build the custom home of your dreams while staying within your budget. We’re an award-winning design-build firm with over 30 years of experience and an outstanding reputation for quality and customer service. Contact us today to discuss your home construction project.

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