When I first meet with a client, one of my first questions is, “What is your budget?” I generally get a look that reminds me of a dear looking straight into my headlights. My clients are often lost, not sure how they should answer and sometimes, even offended by the question.
So, why do I ask this question? Why do I take the meeting there?
Because I need to know where my potential client is, in their mind.
- Are they being realistic, or are they just uneducated on what can be done with what money they have available?
- Do they have an incorrect idea regarding this process and the costs associated?
- Have they been misinformed regarding their potential build?
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These are 3 of the biggest conclusions I make from the majority of my clients. Of course, there are other answers and I do get clients who are well informed and have the correct knowledge, but, they are seldom, because no one is sharing what needs to be shared.
So, let’s break this concept down. Lets look at what should be considered at the start of your project.
First we need to look at land costs. I know, generally, at the point of meeting with a designer/architect you should already have land, or be looking at a few possibilities with intent to buy. (That is where bringing in a designer or architect can sometimes be helpful as they will know what to look for in your purchase.) However, did you know there are costs associated with the land that are not in the initial land purchase? These are costs that will be required to build your home.
If you are building outside of a subdivision you may be required to get a septic system, which will require you to have a perc test done to see if you can have a septic system (this should have been done prior to purchasing, but, if it wasn’t, you will need to get it.) and helps to determine what kind of septic system will be required. It also helps to determine where the septic system will be placed on the property.
You will also need a well if you need a septic. (Not always, but almost always). A well will be how you get water to your house, so, it is very important and is another cost you will need to account for.
Clearing the land, of debris, trees, other vegetation. You will need to clear the land, make it accessible and buildable. This comes with a price, which will be dependant on where you are located. This clearing will also include disposal fees, especially if the land you purchased was used as an illegal dump, which happens often on vacant land.
You will also need to account for soil testing, which determines the condition of the soil. This can be done prior to the start of building, however, a lot of contractors opt for foregoing this until they see a need. When they start digging the footers, if there is an issue, they will bring in an engineer to test the soil and come up with a solution. This should be accounted for in your budget, as it can reach into the thousands and can be a major overage cost. (Planning for something and not needing it is always better than having to scramble to find the money for it when needed.)
Other costs associated with the land are things like bringing in the utilities, cable, driveways, etc. These are costs that are often added into other areas, but should be understood and accounted for. Knowing what to look for helps you understand where your money goes.
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