New Home Budget: How to Narrow Down Your Custom Build Wishlist
Setting a new home budget is a challenging task. You may feel that you need to compromise on building your custom home. You may also need to narrow down your custom-built wish list. On Your Lot Homes is here to help you get started on your custom-built home budget. Read on to learn what goes into a custom home budget, where to focus your budget and must-have custom-built home features. Then, follow these tips to learn how to make your budget more flexible.
What Are the Must-Have Features for Your Custom Home?
The first step to building your custom home budget is deciding what is on your list of must-haves for a custom home. Start with the basics, such as:
How many bedrooms and bathrooms
How many square feet for the house
Location to build your custom home
Features, upgrades, add-ons, fixtures, appliances, etc.
The interior and exterior design of the home is included in the price. While the structural features of a home are important, so is the site itself. Just know that if you have found your dream homesite and there are issues or challenges, OYL Homes will see you through the process. We can help you achieve your dreams by assisting you with the site improvements.
Budgeting for Custom Home Add-Ons and Upgrades Starts with the Base Price
Start with the base pricing to help you better understand the minimum budget needed to build a custom home. Remember that a custom home's base price varies from builder to builder. OYL Homes will provide a comprehensive offering of included features and options. These options are representative of the most popular and current finishes for your new home.
At OYL Homes, our pricing model comes down to 4 components, namely:
Site preparation and permitting. You will receive a comprehensive estimate of land preparation and permitting costs.
Base home price. Here the base price includes all the basic features of the home model you selected.
Additional features and allowances. This is the cost of upgrades and additional features (e.g., breakfast rooms, flex space, extra bedrooms).
Requests for custom options. Custom options are neither standard nor offered as an upgrade.
It is an easy-to-follow pricing model that improves your budgeting and forecasting ability. Take the time to review these options to figure out what exactly you are looking for. You can review your options during the pre-construction meeting with On Your Lot Homes. Carefully weigh your options. The ideal budget decision on how much you plan to spend might depend on the value-add.
Should You Compromise on Your New Custom Home?
Should you compromise on building a new home? No. On Your Lot Homes recommends that you do things exactly how you want them from the start. While it is understandable that you may still want to build a custom home with some budgetary compromises, focus on essentials.
The only correct way to build a custom home is to meet your specifications. This is how you can avoid the regret of not getting it just right! Some home plans face delays and unexpected costs. It is much easier to avoid problems if you anticipate making changes along the way. Your budget should have some wiggle room to allow for changes.
Flexible Budget for Your Custom Home Design Changes
Some home features are simply non-negotiable. Others may be okay to do within budget, such as upgrades. Some custom home features may only be fully realized in value over time. At On Your Lot Homes, we will help you sort through the many options for customizing your new home.
Consider these factors as you evaluate your custom home design budget:
Base Price: This is the base price of the home that will be the starting point for developing your overall budget.
Building Materials: This includes the cost of building material upgrades. You may want wood, concrete, stone, and insulation upgrades.
Appliances and Fixtures: It includes the cost of appliances, fixtures, and finishes for your home—factor in upgraded flooring, countertops, cabinets, lighting, and plumbing fixtures.
Landscaping: This is the cost of landscaping and exterior design. These options include hardscaping and building retaining walls, patios, and walkways.
Contingency Fund: A contingency fund should be a part of your custom home budget. Put funds aside in case of unexpected expenses or cost overruns.
Budget to Increase ROI: Maximizing the Value of Your New Custom Home
Setting a budget is not only about preferences and costs but also about return on investment. For example, you set a custom home budget as a real estate investor to maximize your return on investment (ROI). More compromising makes sense to achieve your investment goals in such a case.
What about a homeowner? Can you maximize your ROI while budgeting for a custom home? Yes, even as a homeowner, compromising may be better than going for all the bells and whistles. In the event you may need to sell, your home’s resale value is important. Focus on your new home's practical and functional aspects to maximize its value. Ask your builder for suggestions on maximizing your ROI.
Increase Your Cash Position to Boost Your Custom Home Budget
Your eligibility for financing options is a matter of finding the right solutions for your needs. Increase your cash position to increase your purchasing power beyond what you expect to spend. This is the easiest way to build more flexibility into your budget for your new home. If you still need more cash, increase the down payment. Alternatively, a mortgage with a variable interest rate may offer a solution; you will need to check with your lender for more information.
On Your Lot Homes will help you identify financing options for your new home. Working with a custom home builder in Maryland gives you access to local market knowledge. We help you decide which options are best suited to your homebuying budget with access to financing.
Explore Your Custom Home Budget and Customization Options
Ready to explore your custom home wish list? Work with OYL Homes to determine your eligibility and discuss your plans. Explore your options with On Your Lot Homes. We are a best-in-class local Columbia, Maryland, home-building firm.
On Your Lot Homes is here to guide you through the home-building process. Get answers to your custom-built home budgeting questions. Contact us today at (833) 289-6954 or reach us via email at build@oylhomes.com.
