Budgeting for a New Home
Once you know how much you are comfortable investing in a new home, the next concern is sticking to the budget. The builder that you choice could make this very difficult, if there are not open lines of communication.
The two types of building contracts
When it comes to putting a home budget together, you have to consider the type of builder that you’re hiring. There are two types of builders: cost-plus and fixed price.
A cost-plus builder charges you the cost of the materials and labor, plus a fee. Their are problem with cost-plus contracts, the price isn’t set in stone. If more materials are needed or something gets messed up, that extra cost would be your. However, if the costs come in lower that would be to your benefit!
A fixed price contract, has an agreed on a price with you once the design is approved, and that price doesn’t change, period.
Elements Design Build is happy to work with customers that prefer either contract type. This has to be decided on before plans are drawn because the process is very different for each.
How to get the most out of your budget
Our goal in designing your home is to get the most of what you want into your budget. We help you decide how much square footage you really need, and find savings to make room for more of the amenities and features that you’d like to have. While everyone naturally holds back a bit when they’re giving their budget, we encourage you to be up-front about what you want to spend. Many times we come in under-budget with our price, leaving you room to add on the extras you’d been thinking of or to keep that extra money in your pocket.