TEC works with clients to develop a budget as well as complete the project within budget. There are several ways TEC does this, here are a few things to think about:
1. The Preliminary Budget
It is often helpful for a client to look at homes that are similar in size, character, quality, and features. This is a good way to develop an understanding of the ballpark price for what your home may cost. This association is usually based upon a square footage price and is often a good starting point to the preliminary budget. Unlike most other builders, however, TEC will provide you with a detailed cost estimate reflecting the home you would like to build. Our costs are itemized to offer easier understanding for the client and allow them to see where they could make changes to obtain a certain look they are after or alter finishes to achieve a particular budget. Our detailed cost estimate is essential to making sure all our clients have a firm grasp on what their budget will be and are able to make decisions based on real numbers.
2. Square Footage Comparison
Another way TEC can aid in helping you define a budget and approximate cost is to look at similar homes in the area. We can offer a variety of homes for example so that all our clients can have a tangible experience to base their decisions on. By looking at a home and subtracting the cost of land and then dividing by the number of square feet you can get a cost per square foot that will allow a better understanding to how different finishes and designs may alter the price of your home.
3. Features and the Associated Cost
Some features of the home are more expensive than others. These areas often include the bathrooms and kitchens, quality of windows, window sizes, and quality of the windows can be a more expensive cost. When determining the budget, you would like to have on a home make sure you look at homes that have similar finishes and features figure out a more precise budget.
When determining the direction you want to go for your home try to keep in on a few crucial factors such as the size of the home, shape of the home, site work, potential cost changes that may influence price, and inflation and market conditions.
The size of a home can sometimes be overwhelming as well as haphazardly sized. Try to look at plans that are based on even number dimensions. If you have a layout that has an odd dimension it would be beneficial to either round them up or down to have a plan that works. When looking at plans the depth is a crucial part and affects the truss layout. When you have a home that is too deep the trusses will often have to be a special design that will drive the cost up. Also when looking at overall appearance make sure to consider the roof lines and how they relate to windows and any gable roof details.
Another key factor that dictates the cost of a home and the overall appearance of the home is the shape of the home. As most people would assume a home that is more rectangular would often cost less to build. The more angles and corners a home has the more labor and materials needed to construct the home which tends to cost more as well.
In regards to initial costs, the site preparation can usually be a big expense. When looking at lots it usually costs less to build on a flat lot because you don’t have to bring in as much dirt and the grading time is usually less as well. On lots that have a heavier slope the grade has to be adjusted and more fill brought in to make the site buildable. There are other factors that can drive the site preparation cost up which are: abundant tree removal and clearing, rock blasting, and significant grading that can drive the site cost up.
Another aspect to consider when planning is how soon you plan to build. A good rule of thumb is the cost to build a home usually increases between 3-6% per year. If you are planning to build a home a year or so down the road it is imperative to add the market inflation to the original cost estimate you have.
When putting together an initial budget and calculating what the home may cost you, it is advised to add approximately 10% to the budget for cost overruns. These overruns often come from change orders that reflect owner changes to the floor plans, unforeseen issues throughout the construction process, and overspending the provided allowances for items such as appliances, flooring, and paving.