Oct 24, 2023
When you just can't find the perfect home in a pre-planned community, building on your own lot can open up a world of possibilities. But with great power comes great responsibility — and that means setting a budget.
Our family at Overstreet Builders knows that building a custom home is a big investment, which is why we want to share some tips for setting a home building budget that works for you.
Know Your Finances
Before you even think about starting the homebuilding process, take a long, hard look at your finances. This means knowing your credit score, current and projected income, and any other financial obligations you may have.
Knowing this information will give you an idea of how much you can realistically afford to spend on your new home.
After you have an idea of your financial situation, consider consulting with a lender that specializes in construction loans.
Pick Your Home Building Approach
When you're on the journey to create your dream home from scratch, you have to choose a building approach that aligns with your budget. You have three options:
- Hire a professional home builder
- Collaborate with contractors
- Be your own builder
Each option comes with its own set of pros and cons. Hiring a professional builder means you'll have someone experienced to guide you through the entire process and manage the construction. You can rely on their reputation and expertise, but it also comes with a higher cost.
Collaborating with contractors can save you some money, but it also requires a substantial amount of time and effort on your end.
Being your own builder can save you even more money, but it's not for the faint of heart! If you're not experienced in homebuilding, mistakes could end up costing you more in the long run.
Choose Land That's Fit for Building
Finding the right piece of land isn't just about the view or the neighborhood — it's about making sure the property is primed for construction.
Proper Zoning
The land should be zoned for residential use (R-1 Residential for single-family homes in Illinois). Altering the zoning post-purchase can be a hassle and might burn a hole in your pocket.
Accessibility
Make sure the lot is easily accessible by road and has access to utilities such as water, electricity, and sewers. The closer these amenities are to your land, the lower you can expect your prep costs. There are other avenues with well / septic, but not everyone is open to that option.
Deed Restrictions or Homeowner's Association Rules
Always check for any deed restrictions, such as specific square footage requirements or pet limitations. If the land is in a neighborhood with a homeowner's association, be aware of any rules or fees that may impact your budget.
Beware of Unbuildable Land
Some plots, despite being zoned residential, might not be fit for building due to:
- Insufficient size
- Challenging terrain
- Lack of water or sewer connections
- Inadequate road access
- Environmental constraints
When you work with Overstreet Builders, we can help you navigate the land selection process so that your lot is ready to build when you are.
Plan for the Unexpected
A budget is great, but it's important to also plan for any unexpected costs that may arise during the building process. Things don't always go as planned. This could be anything from a delay in construction to unforeseen changes in materials prices. It's always better to be prepared for the worst-case scenario than to be caught off guard.
An experienced homebuilder, like Overstreet Builders, can help you avoid many of these unexpected costs by providing a detailed and accurate estimate and timeline before construction even begins. Schedule your Design-Build Consultation to understand many of these factors!
Consider Your Must-Haves vs. Nice-to-Haves
Building a luxury home that’s completely customizable means you have the power to choose exactly what features and amenities you want. With Overstreet Builders, not only do you get to choose from over 20 floor plans, but you also have the ability to make almost any personalization. It's important to prioritize your must-haves ahead of time and be willing to compromise on some nice-to-haves in order to stay within your budget. It’s a balancing act but our knowledgeable team will help you through your tough decisions.
Why settle for a cookie-cutter home when you can build the home of your dreams? At Overstreet Builders, we pride ourselves on collaborating with our clients to bring their vision to life while also staying within their budget.
If you want to explore the possibilities of building on your own lot, contact our team today. With our 60+ years of experience and family-owned approach, we'll make sure the journey to your custom home is enjoyable and stress-free.