Thinking about building your dream custom home can be exciting, but it’s crucial to consider all the costs involved. Some people say you should set aside 10% of the total price for upgrades and changes. While having some extra funds is a good idea, this approach has its flaws. To avoid unexpected expenses, it’s best to work with a builder who plans everything thoroughly. Here’s what you need to know.
How to Calculate the Cost of Building a Custom Home
When you ask a home builder for a custom home cost estimate, they might give you a long list of items and a total amount. The more detailed the breakdown of costs, the better you can understand where your money is going.
Allowances are common in these estimates, but setting aside 10% for them may not always make sense. For instance, on a $750,000 house, that will be $75,000. If the builder hasn’t carefully considered these costs, you might end up with more expenses. That’s why it’s essential to follow a well-planned custom home building process.
Understanding the 10% Myth
Custom homes are designed with your needs in mind, but there are many choices to make during the process. The 10% rule is meant to cover more expensive options compared to the builder’s standard choices, such as flooring, plumbing, siding, and electrical work. However, this approach doesn’t always work out well, which is why it’s not used in many custom home projects.
Simply put, the 10% myth can lead to design problems. Some custom home builders may use it to skip some of the time-consuming design work or to save you the trouble. But it’s better to get all the details right from the start.
Don’t Cut Corners in the Design Process
Designing a home from the ground up is a complex process involving architecture, engineering, permits, land acquisition, and more. Many interactions are needed to make it happen. When you hire a trustworthy builder, they handle much of the heavy lifting.
However, impatience to start construction can get in the way. Everyone, from the builder to the client, is eager to break ground. If you rush through the design process, your plans won’t be as complete, leading to less accurate pricing for your custom home.
What Are the Additional Costs When Building a House?
It’s essential to remember the smaller details that can be forgotten during home construction, like flooring, fixtures, and countertops. These aspects might be some of the first things you consider when looking for land to build on. Still, if your custom home builder in Myrtle Beach doesn’t discuss your preferences early on, you’ll end up with many open-ended items that make it challenging to estimate your construction costs.
How to Estimate Costs
When you meet with a builder for an estimate, they should provide a detailed statement of work. This document outlines what’s included in the contract and includes allowances for items like plumbing and kitchen details. It’s essential to discuss these details before moving forward to ensure you have the most accurate information.
Why You Should Make Selections Early
To avoid unclear pricing, get your specifications in writing as soon as possible, depending on your patience and time constraints. If you have specific preferences, like an 11-inch width for hardwood boards or detailed tile choices, let your builder know. The more details you provide early on, the less guesswork there will be later.
The Most Expensive Part of Building a Custom Home
The most expensive part of building a custom home in Myrtle Beach is often the costs you discover at the end. However, with the right approach, you can minimize these surprises. Establish a relationship with a custom home builder who is willing to put in the effort before the project starts. It’s natural to be eager about the process, as long as you give it the time it deserves for a successful outcome.
The cost of building a custom home can range from $200 to $500 per square foot. To ensure you make informed decisions, it’s essential to work with an experienced builder.
Call Dawol Homes to learn more about custom home prices, or share your project ideas with us today. Our team is always ready to help.
Find great home tips on our Facebook page
9404 Hwy 17 Bypass,
Murrells Inlet, SC 29576
Dawol Homes Sales Office
3100 Dick Pond Rd # E
Myrtle Beach, SC 29588
We build homes in: Cypress River Plantation, Waterway Palms, Waterbridge, Murrells Inlet, Collins Creek, Bellwood Landing, Carolina Forest, Plantation Lakes, North Myrtle Beach, Socastee, Surfside Beach, Pawleys Island, Litchfield Plantation