The Budgeting Process For Building a Custom Home

The Budgeting Process For Building a Custom Home

Your architecturally designed plans are the literal blueprint your builder uses to build your dream home. They also serve as the critical instrument for your builder to create your home’s budget. The plans created by your architect, in large part, determine the price of your home along with the site conditions where your home will be built.

There are three basic steps that we typically follow in order to reach a final, approved budget figure. Often, the first step is to create a preliminary budget based on plans that have reached the schematic phase. This is useful because it gives the team time to check the cost prior to the drawings being completed. This allows for a course correction along the way if needed.

The next step would be to produce the first iteration of the final budget. This is accomplished after the architectural and structural plans are completed and ready for construction.

The final step would be to value engineer the budget figure. This is accomplished by looking at alternate materials selections such as windows, doors, flooring, etc. These alternate selections can have a meaningful impact on the budget figure.

How We Gather Pricing To Produce Your Home Budget

The preliminary cost estimate is derived primarily from historical data and our team’s building experience. We will also communicate directly with tradesmen and suppliers to get their input on unique features. The preliminary cost estimate is a ballpark figure that represents an order of magnitude related to the cost.

The final budget is derived through the combination of historical data, our building experience, and the hard quotes provided by our tradespeople and suppliers.

Once the quotes have been vetted and selected, they are entered into the budget. The budget is then presented for discussion. As mentioned previously, the value engineering process can take place at this stage in order to get the budget where it needs to be.

Budget Challenges

Supply chain issues and availability of specific products can complicate the budgeting process. Price volatility of products also adds to the budget challenge. We want to build the custom home of your dreams with a well-established budget you can rely on so, in order to push back against these challenges, once the budget is approved, we identify and order materials quickly to protect against price increases and assure the availability of materials when needed.

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Craftsmanship Beyond Reproach

At Burnette Builders, we want to build the custom home of your dreams with a well established budget you can rely on. We will sit down with you and review the final budget line item by line item. You will be able to ask questions and address any concerns. No detail is too small. Once the budget is approved, we can get started.

Please speak to one of our professionals today about how we can help build your dream home. You can call us at (512)847-9040 or Contact Us for more information about Getting Started on building your custom home.

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