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Budgeting For Home Buyers: Tips To Plan Your Building, Finishing and Furnishing Budgets

You have always dreamed of building your own home. Home is, after all, where most of life’s biggest moments take place — why wouldn’t you want to live in a brand-new home built specifically for you and your family?

But the thing about new things is they almost always come with a higher price tag. Chances are, you have some questions. Like, “How much does it cost to build a home?” And “How much do I need to budget for?”

Scour the internet and you’ll find cost estimates to build a home. But hold on, there’s more to it than meets the eye. The cost to build a home is based on changing factors like size, materials, labor and area-specific real estate trends. Beyond simply budgeting for building, you also have to plan for costs to finish and furnish the home.

How’s that all work? Let’s take a look.

You will, all along the building process, encounter costs. It’ll start with finding land, then building the frame, then selecting the finishes and features and then buying the furnishings to complete it. And that’s why it’s best to plan for three budgets when looking at the overall cost of your home build — a building budget, a finishing budget and a furnishing budget.

It pays to plan for more than just your future mortgage payments when planning your home build. Remember, even the best-planned budgets can get blown by unexpected costs.

Be realistic about all costs you will incur throughout the building process — and moving process, too. Obviously, you have expected costs like construction, land purchase, builder fees and so on, but there’s more to it than just that. You’ll have other expenses to factor in, like moving fees and the fun stuff — finishings and furnishings!

Budget considerations don’t end at closing. In fact, that’s when the fun begins.

How big of a space do you have planned? More home means more space to decorate. It’s difficult to determine how much to spend on decor, but a little research may help you identify the real cost of furniture and decor given the square footage you plan to cover.

Helpful tip: Give yourself some wiggle room here. It’s easier than you might think to go over budget on furnishings.

You will also want to budget for things like maintenance and repairs. Yes, even new homes have repairs.

One big-ticket component to a home build is the cost of finishes. From the cabinets you want in the kitchen to the exterior siding choice, finishes are what make your home uniquely yours. Your choice of finishes will have great influence on the final price of your home build.

Thinking you might go over budget? It happens. But just because you go over budget doesn’t mean you have to go way over budget.

You can best alleviate unexpected expenses by keeping the line of communication open with your builder and being honest and upfront about what you want before he or she prices your custom home. Begin by being clear about the finishes you want — and make those decisions early (then stick to it).

Bonus tips on planning your finishing budget:

1) Allow some wiggle room to splurge a little — even if you don’t know what you want to splurge on yet. You will learn about many great finishes and features while your home is being built, and chances are, you will see something you just have to have.

2) Double-check what finishes are included and what are not. Most builders provide minimal landscaping in their contracts — grass seed and sod, usually — and allow you to add more features for a fee. Be sure to factor in bonus finishes with your total budget.

Once you’ve run through each of the three budgets outlined above, you should have a fairly good idea of not only what you need to plan for your new home, but also where each portion of that budget is going.

Keep in mind that your final budget is not set in stone until you’ve worked with a builder who has provided a final contract price.

Determining a budget for a new home build can feel overwhelming. If you have questions about what to expect or how to plan for the home of your dreams, talk to us at Paul Gray Homes. We’re here to help!

Our biggest priority is delivering you the most exceptional homebuilding experience, from consultation to construction to final walkthrough.

Curious about the cost of building a custom home in Wichita? Talk with the experienced professionals at Paul Gray Homes!

Call us at 316-978-9047!