Budgeting for a Custom Home Build

Dec 21st 2021
Budgeting for Custom Home

Creating your budget for a custom home build can be broken down into three steps. Land cost, build cost and ongoing costs. If a new home is your goal for 2022, get started with these budgeting tips.

Land Cost

Ideally, land cost should make up about 25% of your total budget. According to Northeast Tennessee Association of Realtors (NETAR), on average, an acre of land in Tennessee costs around $14,400. In-town land may be more expensive than rural undeveloped land. Land with mountain views or water access may also be a bit higher, but these types of property amenities can add value to your home and increase resale value as well.

Think about where you want to live and how much land you would like. When taking into account land costs, consider if the land needs to be cleared, leveled or developed before construction can begin. Keep in mind land feasibility when choosing a lot for your custom home. Consider easements and other development regulations which could affect buildability.

Home Build Cost

There is a lot of flexibility when it comes to custom home build costs. Besides home size and shape, one level or two, your choices in finishes can sway a budget higher or lower depending on your tastes. Marble and granite countertops vs butcher block or laminate, for example, come with vastly different price tags. Tile, hardwood and carpeting also vary in price. Visit our home design center for more information on customizable interior finishes.

Outside, roofing and facade choices are available at different price points as well. Brick or vinyl siding, a wide array of window and door options, and more, let you design a beautiful custom home within almost any budget. Consider landscaping, home decor, utility connections and labor too at this stage of the budget.

Ongoing Costs

There may be things to consider during the build stage that could affect ongoing home maintenance costs. The type of heating and cooling system you choose or efficiency rating of the insulation and windows can affect your home energy costs going forward. The complexity of the landscaping you choose can affect maintenance costs. Taxes, insurance are also unavoidable costs you should budget for when you’re thinking about ongoing home costs.

For more information on budgeting for your custom home, consult our experienced design team. We’re here to guide you so that you can build the home of your dreams. Contact us today. (800) 337-1401