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Congratulations on deciding to build a custom home! You may be eager to jump in and start working with an architect or designer on floor plan, size, materials, and finishes so you can move in and start living in your dream home. We’re excited to help you with it all, but first, consider the biggest practicality of all: cost.

Expenses for every day items from groceries to gas for your car are at premium rates. So too, are building materials. There can even be an extra premium for sustainable and environmentally-friendly materials on top of the already premium prices.

Even if the sky is the limit for your overall budget, you’ll want to plan and set aside the money it will take to complete each room to your liking. A budget will also help you decide where and how to spend your money. If you love to cook and make a lot of homemade meals, you may want to focus a large chuck of your budget on the kitchen. If fun and relaxation are your goal, you may want to pump some extra cash into a media or game room and skip the double ovens and giant island and counter tops in favor of a movie theater screen and seating or a slate pool table and Vegas-style blackjack table,

While the blueprints we draw up for your are the plan for building your home, the budget is the plan for making it all happen.

The Basics

Start with the basics: how many bedrooms and bathrooms do you want? How many square feet? How many levels or stories? Where do you want to build? What are the key features that matter to your family?

Answering these questions will give you a solid foundation (pun intended) and an idea of the funds you’ll need to build your dream home. A six bedroom, seven bathroom 8,000 square foot home is going to cost more than a three bedroom, two bathroom 2,5000 square foot home. A single-story home will be less than a multi-level or multi-story home. Certain parts of a city or state are more affordable than others. Bloomfield Hills, Michigan and Scottsdale, Arizona are more expensive to build and live in than Lansing, Michigan or certain parts of Phoenix, Arizona. Building on a lakefront property is more expensive than building a few streets away. Everything that goes into your gourmet kitchen or top-of-the-line home theater is going to be more expensive than a standard kitchen or just a TV for the living room.

Start the Construction Loan Process

Unless you plan to pay cash for everything, you’ll need a construction loan. Once you have a basic idea of your needs and wants, and get a rough estimate for the costs of designing and building, you can shop your plans around for construction loans. At this point, a pre-approval is key; it will help confirm you’ll have access to the money to build your dream home.

It’s good to start this process now, and consider the possibility of a pre-approval being lower than expected. This will give you the opportunity to modify your plans (from a six bedroom to a four bedroom, five bathrooms to three, etc.) or give you an idea of what you’ll need to pay out of pocket to close the gap.

Budget Breakdown

Just as with your daily, weekly, or monthly expenses, you need to consider all the costs that will go into building your home. Speaking with a contractor or builder will give you a cost/square foot for the building itself.

The lot

This is going to be one of, if not the biggest single cost in your custom home build. Consider available lots in your desired location: how much is the average cost of a lot in that area? What shape is the specific lot in? Has the lot already been excavated and prepped for development? What infrastructure – electricity, gas, sewer, cable, Internet, etc. does it have? What infrastructure does it need? Are there any existing structures to tear down?

These are questions you’ll need to answer before you purchase a lot. The cost of the lot is more than the sale price of the land. If you can’t afford to run all the infrastructure lines, or need a prepared lot, an undeveloped piece of land won’t be the ideal choice.

Cost of Excavation, Building Tear-Down, or Lot Prep

You’ve found the perfect lot in the perfect location in the perfect size for your dream home. Problem: the land needs to be excavated and prepped. Excavation and leveling is complex and costly process that will add on to bottom line. Problem: lines for water and sewer haven’t been run, and the development is new so the cable and Internet companies haven’t gotten all the way through the area either. Installation fees for these services are another cost to figure into your budget.

Cost of Designs & Floor Plans

You’re ready to build! It’s time to talk to us about a specific design and floor plan. Acipe Design is a design-build firm that takes your dream home from a dream design in your head to a solid floor plan with blueprints and builds your dream from the ground up. We’ll meet with you whenever and wherever it’s most convenient for you and we’ll listen to your needs and wants and help you work up a design for your perfect new home. Contact us for a consultation.

Cost of the Build

These are all the costs associated with any task that goes into the building of the structure of the home from foundation to installing roofing and windows. Anything done to finish your home up until finishing the interior. This is another large line item and you’ll want to make sure you have plenty of breathing room for this stage. Keep in mind that if sustainability or other green features will be incorporated there’s a higher up-front investment. But those heightened initial costs will pay off in the long run, paying for themselves with lower operating costs and a healthier and more comfortable place to live.

Cost of Appliances, Finishes, and Selections

This may be the part of the budget where you see all the little things adding up. You’ll want to set your budget for this part of the home build before you break ground or pour the foundation. It’s the part of the budget where you account for items like exterior siding color, kitchen and bathroom cabinets and counters, the frameless glass enclosure for the shower in the master bath, and everything that goes into making your new house your new home. It’s the cost of your must-have perfect gourmet oven and massive stainless steel fridge.

At Acipe Design, we recommend you come in with an idea of the finishes, appliances, and other selections to finish your home you like. When it comes to things like tile, flooring, and even lighting and fixtures, there may be a lead time of weeks and potentially even months to arrive. Having already made these choices you can get the ball rolling on orders so items will be on-hand when it’s time to install them. There’s nothing worse than being ready to install the kitchen back splash tile and not having the hand-painted Spanish tile you chose due to shipping delays.

We don’t require you to have firm decisions from Day 1, but keep in mind every time you want to change something there are extra steps and extra time involved that slow down the process. We want you to have what you want and get you moved in and enjoying your new home as soon as possible.

Items Not Included in Your Build

Acipe Design is a design-build firm that takes your dream home idea from an idea in your head to a finished home you’ll live in for years to come. However, there are a few things we don’t include in that package.

Extensive Landscaping

We currently don’t have any landscape designers or landscape architects on our staff, but we help facilitate the design and can refer you to a landscape designer. When we meet for your first consultation, we can discuss your needs and wants for landscaping and help make your indoor and outdoor dreams a reality.

Furnishings

Acipe Design offers design-build services for your new home, which extends to the building itself as well as the interior finishes. While we have no interior designers on staff the moment, our experienced home designers know a thing or two about furniture, accessories, and paint colors and how to utilize them in every space of your home. We can help guide you to figure out your style, or refer you directly to an interior designer. See our blog post on How to Choose the Right Furniture for Your Home.

Final Thoughts

The staff at Acipe Design is here to help you make your dream home a reality while not breaking the bank to do so. Schedule a consult with us to discuss your needs, wants, dreams, and how much you want to spend to get them.

Contact us to discuss your dreams and how to plan and budget for them!