Building a new custom home requires many steps and people often forget that for every sq. ft. of space added, you add $300-$350 to your budget. Therefore, a custom home around 4,000 sq. ft. is going to run approximately $1.2-$1.4 million dollars.
In today’s market, building a custom home is still possible but requires a level of understanding. For example, a custom home will on average take around 10-12 months to complete and during that time, especially around the first of the year, there will undoubtedly be material increases. Unfortunately, many vendors do not notify the homeowner or builder of these increases and nor the builder or homeowner will become aware of these increases until the invoicing stage, which toward an end of project can defiantly cause concerns.
As a custom home builder, we do our best to take these expected and unexpected increases into account when creating an estimate for our customers and work diligently with our suppliers and sub-contractors to keep these increases to a minimum. As a builder, it is our job to manage your project and keep you as close to your budget as possible, however “change orders” are always undoubtedly a part of the build process, therefore having a significant “miscellaneous budget” is a must. A solid miscellaneous budget would be around 8–10% of your overall construction budget. No matter what your budget, there will always be unexpected expenses, however if you put the time in on the front end, you will find yourself in a much better place at the backend.
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