BONUS! 7 INSIDER TIPS ON NEW HOME CONSTRUCTION …7 INSIDER TIPS ON NEW HOME CONSTRUCTION COSTS D etermining new home construction costs can be a tricky business. With so many vari-

BONUS! 7 INSIDER TIPS ON NEW HOME CONSTRUCTION COSTS

7 INSIDER TIPS ON NEW HOME CONSTRUCTION COSTS

Determining new home construction costs can be a tricky business. With so many vari-

ables and moving parts, it’s easy to see why estimating how much a new home costs takes

the proper planning and even more careful coordination.

If you are planning to manage your own construction project, it will take a lot of work to

create an accurate budget and timeline —everything from materials and labor to impact

fees and permitting. A lack of good planning and incomplete estimating can leave you

scrambling for the additional money needed to finish your new home in the time you

originally anticipated. An experienced builder with bidding expertise can provide you

a fixed price contract because their estimates are based on actual relationships with

vendors and subcontractors. If you are planning to tackle this yourself, be sure to build

in the significant investment of your time to properly secure bids and complete your

due diligence on costs.

Feel free to use some or all of the following 7 tips to help you as you understand

what contributes to cost variables in the most accurate fashion possible.

Understanding new home construction costs is challenging, especially if you’re building your first home. These 7 tips can help you stay within your budget.

CHINBURG BUILDERS, INC. WWW.CHINBURGBUILDERS.COM

I t’s always a good idea to compare similarly built homes to get an idea of

what builders have been able to achieve, and for what price. The good news

is that all the information you need related to square footage and purchase

price is easily attainable by checking out local assessment records online

through companies like Vision Appraisal or contacting builders themselves.

While this may not give you an exact idea of the costs to construct a

similarly built home—because no new home construction project is the

same—surveying structures that are like the one you want to build can

provide a basic understanding of what your home could be appraised at,

in addition to other important information.


COMPARE SIMILARLY BUILT HOMES

2

DON’T ASSUME


2

Never assume you know the price of something related to new home

construction costs–there are often surprises, usually because something

is more expensive than anticipated. Assumptions can lead to unexpected

cost overruns throughout the new home construction process, and leave

you having to compromise your vision when you get to many of the later

finishing touches that you had wanted.

Getting qualified bids from contractors is crucial to determining future

costs. If you choose to hire a general contractor, they can start making a

series of estimates for the amount of a particular finish or material based

on the plans. A contractor also has access to many of the manufacturers of

building materials, so they will be able to understand true costs of things

like windows, sinks, cabinets and other important fixtures. If you are price

shopping at some of the online discounters, don’t forget that these do not

include shipping/delivery costs and more expensively, installation.

3

DON’T UNDERESTIMATE SITE PREP


3

P reparing a site for construction can have a big impact on the cost of

a home. While it’s great to look at your property as a clean canvas for

building, the truth is that the topography of your land could be unbalanced

or have ledge, and therefore needs a certain amount of preparation. Building

on a flat lot will usually cost less, however if you have to haul in lots of

dirt, do a lot of grading, clear trees or blast through large rocks, then site

preparations can become more expensive.

Many projects are unable to move forward unless the proper excavation

strategies and erosion control practices are implemented. Hiring a land

management company can help you understand the need for making changes

in the layout of your land, as well as troubleshoot any issues with environ-

mental setbacks or permitting. And remember, what you do on your land

also affects others, so maintaining a level of neighborly stewardship is

important as well.

4

EXPECT THE UNEXPECTED


4

Building a new home is dependent on dozens of manufactured items

coming together into one final product. If you are expecting perfection, you

may be setting yourself up for disappointment and unnecessary stress.

While proper planning can greatly reduce overruns, it’s always a good idea

to build in some sort of contingency line item. Experts suggest an additional

10% to cover the unexpected costs related to fluctuations in building materi-

als and permit fees.

5

FACTOR IN INFLATION


5

U sually the cost of building a home increases around 3% to 6% per year,

so keeping an eye on the fluctuating material costs is vital. If you don’t plan

to build within an immediate timeframe, be sure to factor in inflation into

the cost estimate for your home.

Because inflation pertains to the increase in price of goods and services, be

mindful how it can affect estimates for material and contracted services to

finish your new home construction project. Also be cognizant of deflation—

which is when the price actually drops and could mean savings for your

construction project. In a down economy there is often more availability of

labor, as well, and therefore those prices become more competitive. When

things are booming there is a lot of demand for all of the trades and prices

rise accordingly.

6

CREATIVE CAN BE COSTLY


6

Many of the creative flourishes that you choose for your home will

impact the bottom line. Building a rectangular or box-shape home typically

costs less to build. However, the more angles and creative corners you want

to achieve in your architecture design, the more you can expect your labor

and material costs to rise.

If your budget is a major concern, choose a few important priorities on

which you would not want to compromise. A simple footprint with multiple

stories will be less expensive than something that has a lot of jogs in the

foundation or is all on one level. However, if you have your heart set on a

particular style, you may have to compromise on some of the other wish list

items in order to meet your budget.

7

COMMUNICATE OFTEN


7

Communication is a key component of your new home construction

project. Communicating with your builder on a routine basis is imperative.

Staying organized and sharing documents helps you stay on the same page,

as well as maintain a good working relationship with your builder.

An experienced builder knows that communication is important and there-

fore has the necessary systems and support staff in place to help document

everything and communicate any changes in schedule or costs. While too

much “overhead” is not always a great thing, having enough support and

infrastructure allows your project manager to focus on the most important

thing—building you a high quality home.

8

CONCLUSION

S o as you can see, determining new home construction costs requires

paying close attention to detail, the ability to compromise and willingness to

communicate. Taking a birds-eye view of your new home construction costs

will help you build the home of your dreams—within a budget that doesn’t

break the bank. Choosing a trusted builder with a good reputation can allow

you to focus on other things, like how you want the end product to be; rather

than having to manage every aspect of budgeting and management.

Becoming knowledgeable about which items can be “budget busters” will

make you an educated customer and help to prioritize your decision-making

when communicating with your builder.

At Chinburg Builders, we specialize in quality new home construction that

is affordable and long lasting. We’re also among the few construction

companies that are committed to green building strategies—we’ve been

building Energy Star homes since 2002. Contact us today to learn more

about how we can help you build the home of your dreams.

Chinburg Builders, Inc. 3 Penstock WayNewmarket, NH 03857

p 603.868.5995f 603.389.9011

www.chinburgbuilders.com

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BONUS! 7 INSIDER TIPS ON NEW HOME CONSTRUCTION …7 INSIDER TIPS ON NEW HOME CONSTRUCTION COSTS D etermining new home construction costs can be a tricky business. With so many vari-