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What’s in Your Budget?
A Paragon Builder / Vallone Real Estate
Wednesday, September 18, 2013 • Posted September 20, 2013 1:26 PM

Do you have Champagne taste with a beer budget? Or can you order the full case of Champagne? No matter what you do, you need to start with a budget. Planning a house requires the same concept. Budgets help not only the home owner, but the contractors as well. It keeps everyone in sync.

Most people have a number in mind when they start thinking about building a home or remodeling. For instance, you might have $300,000 to spend on building a home. You have a floor plan in mind that will be about 2000 square foot. You will need to stay in a $150 per square foot range to accomplish this. If you decide to build bigger, you better find a way to get the price per square foot down. This is where you have to start giving up some of those extra items in your home. Might have to give up that Jacuzzi tub, granite counters, double doors going on the deck from all rooms, stone fireplace, etc. These are just examples of some things to cut corners.

We can’t tell you how many times we meet with people that say, “I have $300,000 to spend and want to build a 2400 square foot house with many bells and whistles.” We kindly tell them, we can’t do that for under $125 square foot or so. They actually get mad at us and think another custom builder can do it. What can happen here? A couple things. They normally end up with another builder and a smaller home with a lot less or they end up with a home with a lot more money involved. Some builders will bid a project for a lot less to get the job, only to hit the new home owner with many change orders or additional cost. Some people decide to even tackle building the home themselves. Building yourself is another topic.

Whether you have a Champagne or Beer Budget, establish a budget to build your home. During the first meeting with your builder, determine what you want to spend, the size of home you want to build, and sign a design agreement. The builder will start crunching numbers to let you know what your home will cost. Including all the bells and whistles you want in it. The builder will give you budget items on things like appliances, lights, flooring, etc. It will be up to you stay within your budget. If you go over, you pay the difference. If you come under, normally the builder will give you credit back.

Building a home can be done with a Champagne or a Beer Budget. You just have to know your limits from the beginning and stick with it. Don’t blame the builder if you have the beer budget and Champagne taste! Both types of homes can be nice. Talk to your builder about all the options available. Small homes can be really nice these days with some of those bells and whistles. Larger homes can be simple or extravagant. Either one is all up to you and what you can afford.

For ALL Your Real Estate and Building needs or questions, call Debbie at (713)818-6658 or (830) 833-4249 / debbie@vallonerealestate.net .

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