Building your dream home from scratch is incredibly exciting, right? It’s fulfilling to imagine the memories you’ll make there with your friends and family. But first, there are so many choices to make regarding building materials, finishes, and flooring. Where do you start?
It’s best to learn how to budget for a build before you start looking at paint samples and floor plans. Establishing how much you can spend on your home construction upfront allows you to avoid costly mistakes later.
What Are the Most Important Things to Consider?
Our professional Chicago, IL luxury custom home builders identified the following construction costs to consider. If you have already finalized your plans and are ready to hire a builder, contact the Icon Building Group at (847) 773-1200 to get a free estimate!
Start with an Overall View
Getting at least three estimates helps you make an educated decision. When you receive the quotes, pay attention to:
- The cost to build the bathrooms and kitchen – these costs are typically higher than other rooms
- How much of the quote is for labor and how much is for materials? The cost of materials should be reasonably consistent, so it’s most important to compare the labor costs.
- Is there an electrical plan or HVAC included in the estimate? The costs for these “extras” soon add up.
It’s also wise to include an amount for variances from the plan. For example, you might change the bathroom tiles or opt for a slightly different internal floor plan. No matter how good the builder is, costs are bound to run over budget in some areas.
The Difference Between Hard and Soft Costs
Hard costs are the ones that are immediately apparent when you consider how to budget for a house build. These include labor and materials.
Hard costs usually refer to the average home in that area. They work on the premise that the ground is relatively flat. If your land doesn’t conform to the norm because of a slope or other unusual features, you may have to pay more.
Soft costs are expenses not directly related to the structure itself. These include engineering expenses, taxes, permit fees, landscaping, and the cost of the land. Another expense that people aren’t always aware of is the clearing and grading of the site.
It’s also worth looking into the fees your city will require you to pay. These vary from district to district and according to the size of your home. These fees build up quickly, so speaking to professional contractors makes it easier to check that you’ve accounted for every expense!
Are you ready to see your vision for your dream home come to life? Call the Icon Building Group today at (847) 773-1200, and let’s discuss your needs. We work with each client to give them the custom home of their dreams.
Now that you know how to budget for a house build, learn about questions to ask a custom home builder.