Designing A Custom Home With A Budget

Written By Keiko Groom

The choice of designer and builder has a huge influence on the overall outcome of your home-building project, so build your team in the early stages of design. The combination of their knowledge and experience is invaluable and will help you build a custom home that is designed specifically for you and your unique lifestyle, as well as meet your budget. Take advantage of their knowledge of building methods and materials that can inspire, create, and develop the perfect custom home that meets your overall goals.

Start with a realistic budget - It is important to take a hard look at the numbers to know exactly what you can afford. The biggest cost-saving decisions happen early in the design phase before the building begins. Whether you are building a starter home or a multi-million dollar luxury estate, the concepts are the same. Start with a list of the major building expenses:

1. LAND

  • Layout - The grade and layout of the land can change the cost of construction. Knowing the cost difference between steep and flat lots will help you in your overall budget.

  • Finished Lots - Purchasing a lot in a developed subdivision can help you out with your overall costs. Do you know if the infrastructure has been stubbed in or not?

2. PERMITS & FEES

  • Location - The location of your building can greatly impact the cost of construction. Building permits and impact fees can vary depending on your building location.

  • Different types of fees you can expect when building a home - Building permits are generally based on the total valuation of the construction, so keeping the project within a reasonable budget reduces the associated fee. Impact fees are different for every municipality and are usually determined by the cost of maintaining the infrastructure.

3. FOUNDATION

  • Size and Scale - The size of your home has a direct impact on building costs, as every square foot adds material and labor. Do you build up to minimize foundation costs or build out for the value of your design?

  • Keeping the footprint simple - Designs with fewer corners, like square or rectangular house plans, are typically more cost-effective to build.

4. FRAMING

  • Build Up Instead of Out - Two-story house plans are typically more affordable. We can help you discuss the pros and cons of building up vs. out.

  • Stack Bearing Walls - Stacking bearing walls requires fewer supporting beams and load transfers and helps reduce material costs. We can help you with the preliminary framing designs to keep your costs down.

  • 2-Foot Framing Modules - Designing your home at even-foot increments allows the use of standard materials sizes and reduces material waste. This uses less lumber and makes the material easier to install.

  • Standard Windows - Using standard window sizes and colors can keep your costs down. Arched or other types of specialty windows can enhance the architectural character of the house and may work in your budget, so let’s discuss.

  • Reimagine Large Glass Walls - Glass walls effortlessly blur the boundary between the home's interior and the outdoor living space. Create a similar look with the use of sliding glass doors and large windows, or a series of French doors. More wall area would be exposed, but you could still enjoy the expansive views and seamless indoor-outdoor transition at a fraction of the cost. We can help you look at different layouts to keep your costs down.

5. ROOFING

  • Simplify rooflines - A straight gable or hipped roof can significantly lower expenses. Complex rooflines with multiple peaks, valleys, and dormers add character to a house, but come with higher costs for materials and labor.

6. EXTERIOR FINISHES

  • Masonry - Your choice of cultured stone over real stone and using less masonry in your home can help keep costs down. We can help you strategize the layout, focusing on the areas that will make the most visual impact.

7. PLUMBING

  • Cluster Plumbing - Grouping the bathrooms, kitchens, and laundry rooms close together with shared “wet walls” on the same floor level or above each other drastically minimizes the lengths of pipe and labor required.

  • Avoid Exterior Walls - To avoid freezing pipes and the use of extra insulation, consider plumbing placement on the interior walls.

8. ELECTRICAL

  • Lighting Fixtures – Do you use contractor-grade fixtures instead of custom high-end light fixtures? Let’s discuss the options when looking at your lighting needs.

  • Cost-Effective Design - Properly designed ductwork that is designed within the conditioned space provides better efficiency and less loss, reducing the burden on the unit. We can discuss the use of energy-efficient LED lighting, occupancy sensors, timers, and dimmers can reduce energy waste and lower your electricity bill.

9. HVAC SYSTEMS

  • Design for Efficiency - Energy-efficient features may be an additional expense up front, but they can save you money over time. Simple upgrades like energy-efficient windows, LED lighting, and well-placed insulation can lower your utility bills.

  • Centralize HVAC placement - Centralizing the HVAC system within the home can reduce the distance and the number of corners the treated air must travel. You won’t have to rely on a larger, more expansive system to force the air farther. Your HVAC system can be ideally suited for your home's square footage.

10. INTERIOR FINISHES

  • Choose Budget-friendly Material - The materials you select will have a big influence on your budget. You can choose nice finish materials that are durable and aesthetically appealing while staying within your budget. The choices you make can give your home a polished look without straining your wallet.

  • Box Beams instead of Solid Beams - The use of beams on the ceilings adds character and creates the illusion of more space by encouraging the eyes to look upwards. Let’s discuss the pros and cons of box beams vs. solid beams and what option meets your budget and aesthetics.

11. CABINETS AND COUNTERTOPS

  • Custom Cabinetry - Custom cabinetry is one of the highest costs of interior finishes. Let’s discuss the use custom cabinetry in the most used and seen areas of the house, like the kitchen, but consider using semi-custom or stock cabinetry for the bathrooms, laundry, and mudrooms to keep costs down.

  • BUILDER FEES - Builder fees are usually a percentage of the overall cost of construction and cover a contractor’s management, expertise, overhead, scheduling, subcontractor management, and site supervision. There are two main types: fixed fee and cost plus, each with distinct advantages and drawbacks.

  • CONTIGENCY FUND - A contingency fund is a financial reserve used to cover unexpected costs during construction, which could include but are not limited to unforeseen conditions, design changes and/or errors, material price fluctuations, and schedule delays. It acts as a safety net, allowing projects to proceed without stopping funding. We can discuss how much you should keep in your contingency fund based on the scope of your project.

OUR FINAL WORDS OF ADVICE

Work with your builder, they are key to managing your costs. They can help identify ways to adjust costs while keeping your budget in mind. Using tools like building cost expense reports can provide actual building costs in comparison with your budget, which will keep you up to date and give you the knowledge to make informed decisions throughout the construction process.

We can help you with the entire process. We have years of experience helping homeowners design and build their dream home. Let us help you navigate the complex building process and set you up for a successful project. Get in touch today for a free, no-pressure consultation: https://www.timphavendesign.com/contact

Keiko Groom