Determining a Budget

Deciding on a construction budget is a critical step that requires careful consideration and planning. Here are some steps that can help you determine a budget that is right for you:

1. Determine the size and style of the project: The overall size and styling of the project will significantly impact the construction costs. Consider the number of rooms, the type of materials to be used, and any additional features, such as a garage or a pool.

2. Research the construction costs: Research the average construction costs in your area. This will give you a good idea of the average cost per square foot for new home construction.

3. Consult with professionals: Consult with builders, home designers, and contractors to get a better understanding of the cost of materials, labor, and any other costs associated with building a home. 

4. Consider the location: The location of the home will also impact the construction costs. If the home is in a remote location or requires additional site work, such as grading or excavation, this will increase the construction costs. A local realtor can also be helpful to ensure that your completed project will be in line with comparables in your area.

5. Include contingency costs: Allocate a contingency budget for unexpected expenses or cost overruns. This should be a percentage of the total budget, typically between 5% and 10%. 

6. Determine financing: Determine how you will finance the project. This will include the down payment, financing options, and any additional costs associated with obtaining a mortgage. An appraisal drawing set is usually required by the lending institution to determine the appraised after-construction value. This can significantly affect the total loan amount. 

7. Work with your residential planner to create an accurate set of construction documents. Often, they will more than pay for themselves in creativity and cost savings, by reducing confusion and costly errors during the construction phase. Revisions or change orders are often one of the most costly aspects of the project. 

8. Consider your interior design needs. As a general guideline, the cost of decorating a room or house can range from $10 to $200 per square foot. However, this is just an estimate and the actual cost will depend on a variety of factors, such as the style of the home, the types of materials and furnishings used, and the level of customization required. 

9. Don't forget the landscaping! Often overlooked curb appeal is vital to the overall value of the property. Proper landscaping costs range from 10% of the total budget for basic lawns to 20% or more for elegant gardens and hardscapes.

10. Review and finalize the budget: Review the budget and ensure it aligns with the project plan. Adjust as necessary to ensure the budget is realistic and feasible.

11. Monitor and control costs: During the project, monitor and control costs to ensure that the budget is not exceeded. Regularly review the budget and compare it to actual expenses. If necessary, adjust the budget to avoid cost overruns. Communication with your design team and the general contractor is key to controlling costs.

Creating a personal construction budget requires careful planning and attention to detail. By following these steps, you can create a budget that accurately reflects the project requirements and ensures a successful outcome.