HERE’S HOW WE START MAKING dream into YOUR very own DREAM home

When you’re building a new custom home, defining a construction budget should be the very first item on your planning checklist. Your construction budget will help clarify the allocation of funds, establish realistic limits, and help you get a better picture of your project.

Knowing your spending limits and developing a custom home building budget will also go a long way towards staying in alignment with your financial goals – and helping you avoid any unpleasant surprises down the road.

Determine cost per square foot (Cost P/SF)

The most common questions we get is, How much do you charge to build for a house per square foot? & How much per foot does it cost to build a new house?
The reality is we can build to any cost per foot, and work within any client’s target budget, so long as the budget is realistic. And, by the square foot home building costs are a great place to start when establishing how much you plan on spending on your new home! Talk with us to get an idea of cost per square foot range on the type of home you want to build. A great starting point is looking at any new, recent new builds in your neighborhood and starting there as a base-line to identify a prospective target budget.

Keep in mind, however, that cost per square foot is determined by dividing the total cost of a project by the number of square feet in that project – so many variables (such as additional features and the precise finishes that you want in your custom home) can skew the figure. This is why we recommend starting by looking around at what other people have done in and around your neighborhood or street specifically. By doing so, you can be assured your new home is one you are proud of, but also a very sound financial investment for you and your family.

High-performance homes

If you’re interested in building green (and you should be), consider that while a high-performance home typically costs a bit more to build, the advantage is significant long-term energy savings over the life of the home. Not to mention, high-performance homes deliver a greatly improved quality of life (which for many is priceless).

High-performance homes cost remarkably less over time, because their efficiency delivers an extraordinary return on investment. Plus, your family enjoys a home that is beautiful, healthier, more comfortable, and better for the environment.

Identify all individual expenses

Once you’ve determined the type of house you want to build and estimated cost per square foot, it’s important to identify every expense contributing to the construction budget of your custom home.

It’s easy to overlook certain aspects of construction which can add up in overall costs. Be sure to consider all of the following when establishing your budget:

DIRECT Pre-construction costs

Before you even begin construction on your new custom home, there are some expenses you’ll need to take into account, such as:

• Lot Homesite Costs (some clients already own their lot, and if not we can help find you the best, most suitable site for your dream with our exclusive affiliation with Douglas Elliman)

• Architecure

• Interior Design (optional)

• Financing (if you are going to get a construction loan in lieu of using cash on hand)

• Permit Fees

• Upfront Retainer Fees from Build/Design Professionals

DIRECT Construction costs

This refers to every physical piece (or hard costs as they’re often referred to) of the project and the labor to perform them, including:

• Breaking Ground : site prep, building pad prep, any needed excavation, foundation grading and framing for slab.

• Exterior Structural : CBS block, reinforcing steel and concrete for structure, windows, exterior doors, roof, stucco, and decorative exterior cladding or details.

• Internal Systems (MEP’s) : HVAC/mechanical, plumbing, electrical, insulation, drywall, and millwork/trim carpentry.

• Interior Detailing/Finishes : paint, wall tile, cabinets, casegoods/built-ins, custom closets, countertops, plumbing fixtures, electrical fixtures, home automation/low voltage, stairs, garage doors, and flooring (including outdoor covered living spaces).

• Site Improvements (Exteriors) : Utilities, hardscape (driveway, walkways, and pool deck, landscaping, irrigation, optional landscape lighting, and any fences, gates, pedestrian and vehicular entry gates

General conditions

Aside from the costs above, there are other considerations related to the construction of your new home. They are:

• Project Management

• Site Supervision

• Misc. Labor & Construction Site Cleanup

• Temporary Utilities, Fence, and Construction Supplies

Our contract structure’s typically alleviate this minutia for our clients, all of the items mentioned above are taken into consideration by us before quoting you a fee. This way there’s no unpleasant surprises. Make sure to clarify this with any Builder you are interviewing for your project. Often times, if not always, this is something other companies neglect to mention. It’s then billed in on top of the fees quoted resulting in an overall cost much higher than what we’re able to offer to our esteemed clients. You’ll be glad you did.

Project HARD costs

Often omitted from cost per square foot estimates, these are the expenses you should be ready for outside of construction:

• Architectural, Engineering, Testing, and Certifications

• Interior Design

• Permits and Fees

Post-construction costs

After construction, it’s important to keep in mind some of the final budget items before you’re able to officially call it home, like:

• Moving & Relocation (possibly storage costs)

• Decor / Interior Furnishing

Allow for some wiggle-room

Once you’ve got all the above expenses accounted for, it’s still a good idea to allocate funds to the unknown:

Contingency / splurge costs

During the project, it will be easy to say “while we’re at it, we might as well…” and when you do, you’ll want to have funds at the ready. When planning for details like appliances or finishings, allow for a contingency in the budget for extras – and make preparations for unexpected upgrades to give yourself the high quality you deserve.

The best approach is to start with a higher contingency, say 15% to 20% and then gradually reduce it as you complete each project phase. For instance, when you first start the design, you’ll have a line item in your budget for a 20% contingency. After the drawings are done and the pieces of the project are identified, you might reduce the contingency to 10%. As you go through construction, you’ll be able to reduce the contingency even more so that when construction is complete the contingency is zero.

You don’t have to spend that contingency. If it isn’t used, consider it found money that you can save. That’s a great way to feel good about staying on track and coming in under budget.

If you follow this simple guideline, you’ll be well on your way to building the home of your dreams – without any unpleasant financial surprises. Helping you with all the steps, so that you can enjoy all the things you’ve worked hard for…while we work hard for you in building your new dream home!

Interested in learning more about how J.P. DiMisa Luxury Homes, Inc, can help take your dream home from start to finish? Click here to email us, or give us a call at (561) 654-5425 for your no obligation, confidential consultation.