How to Prevent Price Overages on Your Custom Home Build

Building a custom home is exciting, and at the end of the process, you're beginning a whole new chapter in your life! While it's a pathway to your dream home, building a custom home is also a journey where the cost to build a home can fluctuate depending on the decisions you make along the way.

Many homeowners find themselves wondering how to save money on a custom-built house or want to know the key tips to prevent cost overruns in custom home construction. To navigate this process successfully, here are some strategies to keep your project within budget.

Choose the Right Land

The land you select for your custom home significantly impacts the cost of construction. Factors like building on a slope, removing trees, or dealing with poor soil can increase the complexity and cost.

Choosing the right plot involves considering future development potential and zoning restrictions, which can also influence costs. Additionally, the proximity of the land to essential services and amenities, like water and electricity, will play a role in determining how realistic a piece of land is for your budget.

This is why assessing your Cincinnati lot before putting in a bid is crucial. Some knowledgeable design-builder teams will help you make an informed decision about your land purchase. Regardless, a land survey is the first step in determining if the lot is suitable. Your realtor will also be a great resource in finding out if a lot has already had a survey performed and more insights.

Hire a Design-Build Team

One of the most effective ways to save money when building a house is by hiring a design-build team. This approach integrates design and construction services, providing a streamlined process.

The design-build method directly addresses how to avoid price overages in the custom home-building process through value engineering, offering valuable insights into cost-effective materials and construction methods. By ensuring that design and construction are aligned, the design-build method will greatly reduce the likelihood of costly changes and miscommunications.

What can happen if you choose the traditional method (hiring your architect and builder separately)? Studies show that the traditional method has proven to increase your project cost and timeline, making the design-build route a no-brainer. 

Control Costs During the Design Phase

Being strategic during the design phase is integral to controlling your home improvement costs. Being clear about your custom home budget and making informed decisions about materials and design can prevent budget overruns. This is another reason why working with a design-build team is beneficial: your designer and builder are working together. 

During this phase, keep these things in mind to keep costs under control: 

• Do your research and bring style and material ideas to your design meeting
• Communicate every need and want to your designer (no detail is too small!)
• Be open to alternative choices to keep your budget balanced
• Don't rush! You'll miss details and have regrets down the line
• Rank your list of needs from "convenient" to "absolutely necessary"
• Rank your list of wants from "would be nice" to "dream home feature" 

Avoid Change Orders

Steer clear of change orders as much as you can because, if you're not careful, they can really add up. If you choose the traditional build route, you might get a low initial quote from a contractor, but then find yourself facing a steep climb in costs due to change orders. This is another reason why working with a design-build team is the best thing you can do for your budget.

Change orders often crop up when something unexpected is discovered on site, or if you decide to switch things up mid-build. To dodge these, make sure your design documents are spot-on from the start. It's all about understanding every little detail of your site and how it might affect your build. 

Also, it's super important to make sure that what you've agreed to in the construction contract is exactly what was in the initial bid. Having a clear scope of work helps everyone stay on the same page and avoids those "Oh no, we didn't plan for this!" moments.

A little bit of extra planning during the design phase now can save you a lot of headaches (and cash) later on. As we've discussed in the design phase section above, take your time to make sure every detail is covered by doing your due diligence in researching finishes and styles and making a comprehensive list of your needs and wants. 

About That Design-Build Team

Preventing price overages in your custom home build requires careful planning and strategic decision-making. From selecting the right land to hiring a design-build team and controlling costs during the design phase, each step is crucial in keeping your project within budget.

If you're planning to build a house in Cincinnati and want to ensure a smooth, budget-friendly process, contact Chris Gorman Homes. Our expertise in home building in Cincinnati and our commitment to transparency and quality will help you build the home of your dreams without unwanted financial surprises.