A common question we encounter from potential clients is: What is the actual cost of building a custom home? The answer is complex and can be influenced by various factors throughout the design and construction process. Although we typically avoid discussing "cost per sq ft," here's a general overview of how to create a custom home budget.
To simplify, consider these components when creating your budget:
Think of your "Total Project Cost" as a straightforward equation:
Total Project Cost = Land Cost + Design-Build Cost + Decor/Furniture/Landscaping Cost
Here are some general investment rules to help you plan your budget more effectively:
Using a $1.2 million build budget as an example, the equation might look like this:
Land Cost (25%): $300,000 + Design-Build Cost (75%): $900,000 = $1,200,000 for Land and Construction Budget.
Optional budget for decor, furniture, and landscaping, including pool (5% to 15% of Land + Construction Costs) = $50,000 to $150,000.
The Total Project Cost in this example ranges from $1,200,000 to $1,350,000.
By following the equation above, you can establish an initial high-level budget based on your design-build location, then start looking for land and planning your home based on your established budget.