12 Aug

4 Ways Cost Can Kill Your New Home Construction Project

As the old saying goes, home is the starting place of love, hope, and dreams. This is especially true for first time homeowners who are building the home of their dreams and embarking on the exciting world of home ownership. Home ownership has its struggles but the rewarding feeling of owning a space that belongs to you is unparalleled. This is precisely why, for most homeowners, getting the look and feel of their home precisely right is crucial to the type of relationship that they will have with their home moving forward. While a fresh coat of paint or some quick spackling may be enough to improve your feelings toward your new property, sometimes more extreme measures have to be taken in order for things to really feel like home sweet home.

For some, a bigger kitchen, an extra room, or a complete remodel may be required before the space feels livable let alone complete. Although the idea of expanding does sound fun and exciting, often times cost can be overlooked and ultimately result in the dream being lost. Since we are not all millionaires, creating and sticking to a budget as well as saving the appropriate amount needed to complete the project or projects is a crucial piece to the construction puzzle. The problem is that since most new home owners do not have construction experience, knowing how much to budget and save is not always clear. If you are considering a new home construction project then consider these 4 cost killers and avoid any unforeseen costs.

1.     The quote may exceed your budget – While saving is a great way to prepare for home construction, a general idea of how much should be saved is not always clear. Selecting an appropriate budget or even a range that is close to the quoted cost can be tricky, especially if this is your first time looking into a construction project. If you are having trouble determining what your budget may be, then consider using our construction budget guide for better accuracy.

2.     The final cost may exceed the initial quote – Although quotes can give you an accurate idea of what construction may cost, they are not always full proof. Changes during construction along with a plethora of other potential issues could result in higher cost that may not have been anticipated. Understanding the possibility of this happening ahead of time is crucial as issues in making payments could halt construction all together. Before starting a home construction project, be sure to do the research or consult a professional about incorporating overage into your budget. Consumer Protection determined that most projects will not exceed more than 10 to 15 percent of the initial quote; therefore, it may be a good idea to incorporate this much extra into your budget and savings.

3.     Materials may cost more than expected – Materials such as brick, plaster, and metal sheet are commonly used during construction projects but are not always sold at the same price. While most construction companies will try to find the best deal to reduce costs, availability sometimes makes the best priced product less possible; therefore, the cost of materials that were expected to have been used during construction may suddenly increase. Preparing for these changes and adding overage to your savings is a great way to prepare for any unexpected increases in cost due to materials.

4.     The project requires more workers – Most construction professionals can determine the manpower needed to complete a job after the initial consultation. However, there are circumstances that require more workers to assist which are not always evident until after the job has begun. Since more workers mean another employee to compensate, the overall cost could most likely increase.