What Will The New Home Cost?

Here's a list of items that go into what a new home costs.

REMODELING BUDGET WORKSHEET

Soft Costs (Design, Architect, Eng., Permitting, etc.). This should be 5% to 7% of overall costs

Land Cost

Construction (Based on Contractor Bids)

Utility Set-up Costs (Water, Electric, Gas)

Decorating (furniture, accessories, window treatments)

Special Items (Artwork, heirlooms, etc.)

Telephones, computers, & Audio/Visual

Security/Alarm Systems

Landscaping & Other Exterior Costs

Move Related Costs - if applicable

SUBTOTAL: $

Allowance for Changes in Scope & unforeseen items (10% of subtotal)

Contingency (10% of subtotal)

Total for Base Price: $

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Get all your prices in writing. Make sure your bids are "apples to apples." Builders, and especially sales people, may make promises that won't be kept. Find out about warranties, what is excluded from the price, completion dates, and what happens if the promises are not kept.

The cheapest price may not be the best guy for the job. The low price might translate into the cheapest materials and lowest quality.

Select a builder that is qualified (it's better to pre-qualify them before you ask them for bids). What would you find out if you did a credit check on the builder before you awarded the job?

Once you've established your overall budget, stick to it. When building a new home, the contractor won't have any unforeseen conditions surprising him, as he might have during an alteration of an existing house.

Therefore, if you don't change your mind about something in mid-stream, there should be no reason for cost overruns. Don't let cost overruns eat away at your remaining savings or retirement funds. These are not bail-out funds. You will need them for other things later.

If you have any questions about what your new home cost will be, contact me by clicking here.

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