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Are you worried about going over budget?
And, are unsure that what you have allocated is going to be enough to meet your expectations?
When this concern forces you to be vague or even secretive about your budget, you only waste your time and that of the builder. Whether the builder designs a home based on a low budget or simply doesn’t invest the time to prepare an offer, you won’t receive a realistic proposal. Unless you’re working with facts, any other outcome is impossible.
Instead, by being open and honest with your builder from the start, they will design a home to suit your budget, regardless of size and if what you want isn’t possible, they will tell you. This will mean you know exactly what you will get, so you can be realistic about how far your budget will stretch and which areas you are willing to compromise on.
Being upfront will give you the home you’ve dreamt of, whilst also ensuring the builder stays within your budget from the outset.
Be Upfront With Your Builder
According to Domain.com one of the main causes for a budget blow out is going for the cheapest quote. It’s a false economy. Eventually, the buyer catches on and then adds variations to the project to try and bring the home up to the standard they were expecting. This is frustrating and adds an additional layer of stress at a time when you need it least.
Some buyers think they shouldn’t tell the builder their actual budget in order to get the best deal, believing that if they give a really low figure, they will get a bargain. But in reality, all this will do is force the builder to make unnecessary cuts in the mistaken belief that what they are working with, is an accurate sum.
Not only will this waste their time, but you won’t be giving them the chance to design the best home for you if you keep your actual budget to yourself. In fact, if the budget seems too low, some builders may not even attempt to quote, meaning you will miss out entirely.
Either way, these buyers find themselves negotiating on something that doesn’t exist yet. But by being open about what you can afford, a professional builder will work with you to design the best home for your budget. This is a far better, more efficient outcome and it also builds trust from the outset, as well as your dream home.
Some people waste their time going to multiple builders without being genuine about their budget. In return, they get mixed messages about what they can expect from their new home, adding more confusion to the process. Whether it’s because these buyers believe that telling a builder their real budget will just mean they will increase their profit, or if it’s because they’re trying to keep a buffer back in case the builder runs over budget, it is a trap that needs to be avoided.
A professional builder will design to your budget and requirements, ensuring your vision is captured accurately.
To help you ensure your new home remains within budget, here are some of our top tips.
It’s Okay To Ask For Help
First of all, if you’re not entirely sure of your budget, it’s important to ask for help. If you have an idea of what you really want for your new home, a professional builder will work with you to determine a realistic price that you can use for budgeting.
Often people in these situations simply pluck a figure out of thin air, but all that does is restrict the builder and their capability to design a home to your expectations.
Make Sure The Specifications Fit Your Expectations
The next tip to help you remain in budget is to ensure there are no generic specifications within the contract.
In fact, your standard inclusions should document the product make and model of every fixture and fitting included. This will enable you to clearly see if the quote and the specifications meet your expectations.
You should avoid contracts with provisional sums and primary costs. These essentially set limits on how much labour and materials will be used for aspects of your build. Some builders will use these to artificially lower the value of the quote, so they can ask for more money later in the build. But a professional builder will ensure everything you need is included within the price. So you can be confident the price you sign, will be the price you pay.
Only Settle For A Fixed Price & Guaranteed Completion Date
Last but not least, make sure you get a fixed price contract that has a guaranteed completion date. This will help give you confidence that you will not run over budget. With a guaranteed completion date, you will also have the peace of mind that you will not be hit with hidden costs for additional rent or loans whilst your home is being finished.
As with any contract, you need to have everything in writing. If it’s not written down, it’s not included.
Designing a new home can be very overwhelming and when you hear new things for the first time, it's not easy to remember everything.
Download our quick guide, it’s completely free, and it will help you to keep your design on budget and avoid any nasty surprises that can sneak up on you when building a custom home.
