What is Your Budget for Custom Home Building?
Most of us have a target number in mind when buying property or building a new home. But a budget is so much more than a price range — it reflects the practical needs and highlights which luxury designs you want to prioritize and which ones you can live without. That’s why planning is an important component of establishing any budget.
In 2017, the average cost to build a house was $428,000, and that’s just based on a 2,800 square-foot home. Of course, the market has changed since then. When you’re preparing a budget for your dream home, you need to be aware that new homes can range from $80 - $200+ per square foot.
For Arizona, a new home budget can be anywhere from $200,000 to $625,000. Obviously, every house deals with a number of different budget factors from land cost to taxes to final details. Every part of a new home costs money. Therefore, it’s important to consider all the different factors to go into your budget.
- Budget Factors
- Land cost
- Local taxes and fees
- Engineering and design fees
- Interior decorating
- Contingency budget
Support Your Budget with a Loan
Often, to build the home of your dreams, you can expand your budget with a loan. A number of resources exist to help you find the right loan. Be sure to consider the following:
- Check your credit report.
- Check multiple lending options for the best interest rates.
- Check the different mortgage options.
- Check to ensure that you’re prepared to make a down payment.
Another key component to determining your budget is having a true grasp of the vision for your house. You want a budget that will give you the home of your dreams. Every detail is important.
After you know what land lot you will build on, it’s important to define your practical needs versus the things you would love to have in your house. Some things may be more priority than others. While you may want an in-home theater, a home office may be necessary. However, when you work with a team of professionals, there may be options to create multi-purpose rooms to fit both your practical needs and fun home desires.
Beyond design and building, home building also requires a number of permits and other types of paperwork. These permits and paperwork add additional costs. You’ll need insurance to protect your building investment, paying annually or monthly.
A large part of building a home is planning and the budget. These two steps are time-intensive, but they are so important in preparing for a smooth construction process. The more time spent in preparation helps ensure that you are ready for potential surprises.
At Fairfield Homes, we work with you to build the home of your dreams with luxury amenities and stunning, one-of-a-kind Arizona views. Speak with an industry expert today!