You’ve been dreaming of your new home for years, and now you’re ready to start the design process. As the largest financial investment in your life, it’s natural to be anxious about sticking to the budget.
Our experienced team have the following advice and guidance for you to get the home you want, at a price you can afford.
Your budget and your expectations need to be in sync; you can’t build a home that’s the envy of the street on a shoestring budget.
Be honest with yourself about how much you can save, and what you can afford to build, keeping in mind that you may need to compromise on certain features of your home.
Your fundamental financial assumptions must be accurate, or your decision-making will be starting on a shaky foundation.
Your builder will be your best advisor during the design process. Be upfront and honest with them about your budget, as they have the experience and knowledge to provide alternative options that will suit your circumstances.
If you have a dream feature that you suspect is too expensive, let them know anyway, and they can discuss how it will fit into your budget, or a different idea that would achieve the same effect.
Got a question? Contact our friendly team of Adelaide custom home designers.
Cost-Plus vs Competitive Bid
There are two main contract types for building a new home. The competitive bid is when your builder offers to build your home with the agreed design for a certain price.
The cost-plus bid is when your builder provides an estimate of the cost for your new home, and the final price is determined by the builder’s actual costs, plus a percentage margin on top.
There are pros and cons of each model; the competitive bid will offer the most accurate picture of your final cost, however, this is dependent on keeping adjustments and changes to a minimum.
Click here to learn more about how much building an Adelaide custom home design will cost.
You should aim to sign a contract for less than the amount you can afford to pay. This “buffer” idea is one you should be familiar with, however, the reason we suggest it may not be.
In our experience, once construction has begun, our clients often wish to make additions or modifications to the plan as they see their new home take shape.
Having already allowed for a buffer provides the flexibility and freedom to make these changes as you see fit, and without breaking the bank.
Yes, it is possible to build a new home on time and on a budget. You have control over the most important aspects of budgeting; if you perform your research and due diligence, are honest about your finances, and include your builder in the conversation, then you’ve ticked all the right boxes.
To talk to a custom home builder in Adelaide about getting the best price for your new home, click here.