How to Build a Budget for Your Custom Home

Budget is right after location in factors that matter in building a custom home. But how do you plan a budget for your custom home? We have the roadmap for it, complete with explanations for the stops. You'll want to take notes or use this blog as a reference because this information can save you time and money for years to come. 

The custom template for building a house

If you're looking for a custom template for building a house, you've come to the right place. Not only do we provide one, but we show you the process of how we got there. Building a budget for your custom home can feel daunting, but it doesn't have to be. The number one way you can aid yourself in the process is to partner with a custom home builder who understands your region and your bespoke needs with a time-tested process. Here are the three factors that comprise the cost of building a home in Central New Jersey.

#1 The cost of Land

If you're looking to build a custom home on a budget (although we maintain that there is always a budget), the cost to build a custom home when you own the land is less than when you need to find that perfect plot. If you already own the plot of land you've earmarked for your custom home, you can skip down to the next header. If not, keep reading!

It's important to identify what type of land you want. Whether you want something in a rural location, urban, inland, or closer to the coast, it's important to start looking for land sooner rather than later. If you're looking for a partner to give you ideas and provide insight into buying land in Central New Jersey, GTG Builders is a custom home builder with decades of experience in building and sourcing land.

#2 land Improvement 

Land improvement is the next piece of your home construction budget. Depending on the piece of land you choose, it can be a notable part of the cost of building a house in New Jersey. In this step, it is strongly advised to reach out to a custom home builder who can comfortably and efficiently tell you what site work needs to be done and an estimate of what it might cost to bring it up to code. Here are a few factors that go into site improvement.

sewer versus septic

It's not glamorous, but sewer versus septic solves a major practical issue. No matter which one you choose, this is an inexplicable part of building a house in Central New Jersey, and everywhere else. Your builder will be able to advise you on the best course of action for your property. If you're building a home on a budget (no matter the budget), you want to get this right the first time.

public water versus well

Ah, utilities. Once again, it's not a glamorous component of the building a house budget template, but it's absolutely vital to weigh the pros and cons and make a decision before you begin construction. 

Grading Work

Grading work is a cost factor that is heavily dependent on the site you choose. The average cost of building a house in Central New Jersey doesn't belie the real cost of grading work. An experienced builder will be able to tell you precisely what grading work needs to be done for the location you've chosen and the sort of layout you're building. Remember, a home is only as sturdy as its foundation, and appropriate grading and leveling sets your foundation and custom home build up for success. 

#3 Construction Costs

How much it costs to build a house in New Jersey also depends on the size of your house and its actual floorplan. There are a few floorplan factors that change the cost of building your home in Central New Jersey. If you're looking for a quick estimate of your construction costs, send the floor plans you like to your builder. Once you have your custom floor plans, you'll receive a more detailed construction cost estimate. But in the interim, this quick estimate will work. 

Ranch versus Two-Story House

There are different construction costs associated with a ranch-style home versus a two-story house. Understandably, there is more detailed work entailed in a two-story home than a single-story ranch house. An experienced builder will be able to successfully build any style of house without adding extra costs from a lack of experience or mistakes.

Decks and Porches

A deck or a porch is not only a fantastic location to spend outdoor time in the comfort of your own home, but they also are factors that impact the cost of building a house in Central New Jersey. Once again, your builder will be able to advise you on the best practices and ways to match your budget and porch goals.

Finishes

Finishes are one of the costs that are overlooked when building a custom home. The baseline product is often much cheaper than the custom or luxe finish you end up choosing. While it is well worth the investment, we recommend keeping the overall costs of finishes in mind when preparing your budget.

Create Your Custom Budget

Now that you know what factors impact your custom home budget, it's time to build the budget. While memories of math class might make this feel overwhelming, the formula for how much it costs to build a house is actually quite simple.

Ready for it? All you have to do is combine the previous steps and add them all together. We recommend a handy calculator to carry all the zeros, but combining these different price points will allow you to understand what your budget will fully be. We also have a free custom home budget worksheet for you to utilize. Once your budget is in place, you can see if it aligns with your financial goals and expectations and if something needs to be adjusted.

While building a house with land you already own is cheaper, every part of a custom home build is an investment in your future. When you pick out the land you need, you can choose the exact spot where you want to build your dream home. Your dream home can be a reality with the right custom homebuilder on your team.

Contact GTG Builders

If you're looking for a builder to partner with you in building your custom home in Central New Jersey, GTG Builders is for you. Contact us today to see what we can build for you.