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How to Keep Your New Home Construction on Budget

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Compeer Financial
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Home > Education & Events > How to Keep Your New Home Construction on Budget
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Building a new home can be unpredictable. Changes, unexpected items and overruns can pop up often and at any time, making it challenging to stay within a budget. The most important step to managing your budget happens before you even start construction. The more time you spend gathering estimates and creating an accurate budget, the easier it will be to manage costs during the project and the better your project will go. 

Gathering Estimates

Often, homeowners try to quickly estimate the entire cost of their project instead of looking at each area individually. They often think of only the big components of the project and miss many of the small costs, which can add up and cause concerns with your budget mid-project. Although it will take longer, gathering bids and doing cost estimates for each area will provide a much more accurate estimate of what it will cost to build your home. People often discover that when they get written bids, they are for more than first anticipated. Compeer Financial's sworn construction statement is a great resource. It lists the costs typically associated with building a new home and is a great tool for creating your budget.  

Acting as Your Own General Contractor

One of the great things about working with Compeer is that we allow individuals to act as their own general contractor. This can be a great cost savings for individuals who choose this option. 

Planning for the Unexpected

Once you have all of your written bids and total up the project cost, it is recommended that you add 10 percent on to the total budget for a contingency or overrun account. This will keep any bid or line item that changes or goes over budget from derailing the cost of your entire project.  

Remembering Related Costs

When many people estimate the cost of building a new home, they often focus on the construction needs and forget the associated costs when building a home. Don’t forget to factor in other costs, such as temporary housing while you build, closing costs and title fees, when determining how much you can spend on your new home.

The Compeer Financial team is here to help. Check out our home mortgage e-newsletter for more insights and advice on buying or building your home in the country.
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