Budget – for a custom house always always plan to go over your budget. In other words, budget low to allow for those “overrides” or extra expenses. There will be items that you will move from the want list to the need list.

The first step in establishing a budget is to decide about how much you plan to spend for the entire building project. The next step is to start an itemized list of everything involved in the building project. This is a lengthy list and can be broken down into phases including clearing the lot, foundation, framing, labor, materials, sub-contractors for electrical, plumbing, and HVAC, finishing, trim, accessories, cabinets, landscaping, and everything else included in the project.

In budgeting one of the biggest decisions is getting a reputable contractor. A mistake, unless in the contracting business, is to be your own contractor. A word of wisdom… there are many decisions to make and many hurdles to climb, having someone responsible to help guide and make those decisions is necessary. For instance, if there is an issue during excavation, sub-contractors don’t show up or quit, the wrong product is delivered, etc. All these issues not only effect the time they also effect the budget. A good contractor is on top of these issues and can sometime head off a problem before it exists.

The purpose in building a custom house is to have the house you want, maybe unique in some way or have items which may be unique to your house. For instance, you may want plumbing fixtures or light fixtures that are unique that are not “builder grade”. If you plan to furnish your own fixtures this needs to be addressed with the contractor. Who will furnish what? This effects the budget.

A seasoned contractor who has much experience in building a custom house can help with moving items from want list to need list or visa versa. They can help with reevaluating the “plan”. For instance, I really wanted beams in our great room and a coffered ceiling in the master bedroom. Not that this decision was either or, but both were factored in when budgeting. After much thought the decision was made to forgo the beams yet hold to the coffered ceiling.

There are many factors in budgeting for a custom home. Doing your homework well in advance is critical. Some professionals who can assist in these decisions are loan officers, real estate agents, architects, and finally your contractor.