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.  

Bonus:  Download our free PDF, The Most Important Questions to Ask Your Builder- a quick guide to make sure you're asking the right questions.