Creating a Budget for Your New Jersey Custom Home

Why Success Depends on Budget

 

Embarking on a custom home build in New Jersey can be a huge undertaking. While incredibly exciting, it is also a time for realism. It’s important that you not only agree on a budget for your household, but that you select a custom home builder that works with you during the planning process to establish a budget that you feel comfortable with.  A good builder will not only offer advice to help you avoid common pitfalls, but work with you side by side to explain the underlying cost of building a custom home. 


 Ancient Proverb: "Suppose one wants to build a tower. Will he not first sit down and estimate the cost to see how high he can afford?"

 

Sample Budget Outline for a Custom Home

 

Step 1 - Consider the Cost of Land

What will you spend to purchase a property?

  • We'll help you determine feasibility, determine any possible issues and identify areas in which the seller should give money back (ie:  taxes, utilities)
  • We work with you to identify any ‘hidden problems’ that may arise during the land acquisition process, issues like, zoning, testing, soils, wetlands, back taxes, and permitting. 

 

Step 2 - Cost of Improvements

After you’ve acquired your land,  step two is to analyze the cost of any improvements that may need to be made on that land.  

  • Are there any trees that need to be removed prior to building?
  • Do we need to import or export any dirt?
  • Will you require an extended driveway?
  • What is the cost of utilities? Do we need to be aware of sidewalks or stormwater management systems?
  • Does your lot require any additional demolition?

 

Step 3 - Cost to Build Home

By now, we've had a few conversations and better understand your vision. Here's how we'll determine the price to build your custom home:

  • What type of home do you want us to build for you?
  • What features are a "must-have" (home office, mudroom, 3 car garage)?
  • What features are a "nice-to-have" (finished basement, sauna)?

 

The initial cost estimate will be refined as we continue to sit down and review your options and you come to a final decision of what you want your new custom home to look like. For more information on budgeting for your custom home, we invite you to contact us.  

 

Custom Home Guide