Planning your build

The Importance of a Detailed Budget when Building a Custom Home

When building a custom home, it’s important to have a detailed budget in place to avoid any unexpected costs and keep your project on track. At G.J. Gardner Homes, we understand that building a custom home is a significant investment and want to help our clients make informed design decisions.

Planning is a crucial step in home buying as it allows potential buyers to determine their priorities and what they can realistically afford. A detailed budget is essential to any building project, especially for a custom home build.

By planning out their finances, buyers can navigate the complex process of home buying and minimize the potential financial or emotional stress that comes with going over budget. It provides a clear understanding of the costs involved and ensures that the project stays within financial boundaries.

A detailed budget helps to keep everyone involved in the project on the same page and across the financial expectations and goals. It also offers a more accurate timeline of the project and helps identify areas where costs can be minimized. When it comes to building a custom home, our detailed budget processes provide a successful and stress-free building experience.

What does a detailed budget for a custom home build look like?

Budgets, put simply, are financial plans that outline the cost of building a custom home, including all expenses related to materials, labor, permits, and fees. In the context of custom building, budgets are a roadmap to help homeowners make informed decisions and stay on track throughout the building process.

When creating a custom home-building budget, it’s important to consider the cost of materials and labor for your local area. Building costs can vary significantly from state to state, and even from city to city. It’s also important to consider the size and complexity of your home, as well as any additional features or upgrades that you want to include.

Ideally, a detailed budget should also include the funds to cover any unexpected expenses during the building process. This cushion minimizes the effect of going over budget for unforeseen issues or changes for a smoother building journey.

We work with our clients to create a detailed budget tailored to specific needs and design preferences. G.J. Gardner Homes operates through a fixed price scheme that avoids hidden costs, so everything is laid out and explained upfront. Our team of professionals has the expertise and experience necessary to provide accurate cost estimates and help homeowners make informed decisions about their custom home-building projects.

How to budget when building a home:

Creating a budget for your custom home is a critical step in the building process. It allows you to establish financial boundaries and ensure that you can afford the home you desire without any unexpected expenses.

  • Start by listing all the features you want in your home. Be specific about the materials, finishes, and fixtures you desire. Once you have a comprehensive list, research the costs of each item and factor in any labor costs associated with installation.
  • Consider the cost of the land and any site preparation required, such as excavation, grading, and landscaping. You will also need to factor in the cost of permits and any professional services, such as architectural or engineering fees.
  • Factor in a contingency budget for any unexpected expenses or changes in the building process. This additional money should be 10% to 20% of the overall budget.
  • Categorize each cost by phases of construction, such as design, site preparation, foundation, framing, roofing, and finishes. This helps to ensure that you have accounted for all expenses in each phase and avoid any surprises.

Why is it important to make a detailed budget when building a custom home?

A detailed budget provides clarity on the cost of the entire project, from start to finish, and helps to keep expenses under control. Without a clear understanding of the expenses involved, you can end up overspending and experiencing unnecessary financial strain. It is important to consider factors such as the resale value of the home, energy efficiency, and long-term maintenance costs when making these decisions.


What should I do if I go over budget building a new home?

If you find yourself over budget during the building of your new home, the first step is to review your budget and identify where you may have overspent. From there, you can adjust your spending and prioritize your remaining expenses to ensure that the most important elements of your home are completed first. Our team can work with your budget to find any cost-saving measures that can be taken without sacrificing the quality of your home. 

Got any tips to stay on budget when building a new home?

Start by creating a detailed budget and sticking to it. Plan and prioritize your expenses, opting for cost-effective options wherever possible. Our builders can guide you through the process and help you make informed decisions as well as regularly review your budget throughout the project to ensure you are staying on track. 

Where should I cut when budgeting during a home build?

It’s important to prioritize where to cut costs when building a home. Consider cutting back on unnecessary features or amenities, opting for standard materials instead of custom or luxury options, and being flexible with the design to avoid costly changes. 

When building a home, what is the average amount that people go over their budget?

According to recent surveys, people building a new home in the United States typically go over their budget by around 10-20%. If you’ve overspent, you aren’t alone!

Get in touch

At GJ Gardner Homes, we understand the importance of a detailed budget and are here to assist you every step of the way. Contact our friendly team to learn more about how we can help bring your dream home to life within your budget.