Will Your Custom Home Go Over Budget? How to Spot the Red Flags

October 27, 2015

When do most custom home cost overruns happen – at the beginning or the end of the design build process? The myth about custom home building is that budget overruns happen during the final 20% of the build. But the truth is that there are almost always warning signs early in the planning process that a home will go over budget. Homeowners that are experienced in the design build process can recognize these red flags early and avoid costly mistakes later. What do homeowners that are experienced in building custom homes know about staying on budget that first-timers may not? Here are a few red flags to look for to keep your home on time and on budget:

Changes? Cha-Ching!

One of the most common ways that homeowners who build a custom home for the first time blow their budget is by making changes throughout the process. Moving a wall after a home is at frame, choosing marble after granite has been ordered, and deciding to upgrade to a larger range after cabinets have been ordered are just a few examples of how small changes can quickly add up. Experienced homeowners know that locking in and committing to design decisions early (with the help of a professional and experienced design team) will ensure that their home stays on budget.

Don’t Ask the Jones’

A homeowner who builds a custom home for the first time may estimate the budget for a new home based on homes of a similar size. An experienced homeowner knows that there can be significant cost differences between one 2,000 square foot home and the next. Land preparation costs, finish selection, and design complexity can create a home that’s significantly more – or less – expensive than another home of a similar size. An experienced builder can help you create a budget that matches your vision. The best way to eliminate red flags early in the planning process is to meet with a reputable and experienced builder for a free Project Analysis. A builder that is reputable will help you maximize your budget by offering solutions based on your lifestyle and your priorities. In fact, a good builder will help you feel like an experienced pro even if you are designing and building your custom home for the very first time. Want more information about how to keep your custom home on budget? Download our free guide “9 Keys to Avoid Broken Budgets.” Estes Builders is an award-winning design build firm that specializes in custom homes in Western Washington. We have earned more than 130 customer testimonials and a reputation as Western Washington’s most trusted custom home builder. We build custom homes in Sequim, Port Angeles, Port Townsend, Port Ludlow, Bainbridge Island, Kingston, Silverdale, Port Orchard and surrounding areas. Contact us for a FREE Project Analysis to discuss your project.]]>