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5 Tips to Manage the Construction Budget of your dream home

One of the most common anxieties for people who wish to build their dream home is to preserve the available budget. The construction projects have a bad reputation of getting easily out of rail regarding the Budget. This can be very frustrating for the owner so here are some tips that you should certainly take into account:

Tip#1: Consider your maximum available budget

Before you start spending your 1st euro for the dream of building your home, you should analyse precisely your finances and consider carefully the maximum budget that you are willing to spend for it. The level of this available budget should ensure that will not affect any other aspect of your financial plans (business, family, travel etc.). This amount will be the red line that you will have to preserve no matter what and will include every financial aspect relating to your dream home.

Tip#2: Ask as soon as possible for a professional’s advice

When the available budget is determined, it would be wise to ask for professional consultancy and advice. It is important to ask a professional that you trust (Architect/Engineer/Contractor) and wish him/her to participate in the project. The reason is obvious…There is a common interest for the project to be properly managed and to be at the end successful.

Hiring at the correct time an expert can help you a lot to preserve your budget. Just give him the information regarding the available budget and your  basic wishes regarding the house and get his help to get a first approach regarding the level of the different costs categories such as:

  • -Plot purchase price and additional costs occurring by that (Realtor’s fees, notary, lawyer)
  • -Architecture and Technical Studies Costs
  • -Building Permit Costs
  • -Construction Budget (Residence - Landscaping - Access - Network Connection)
  • -Electrical Appliances and Furniture

Keep in mind that in this first approach, you cannot be very precise but you just aim to get a first rough idea.

Tip#3: Choose the correct plot of land

Starting from the plot purchase, a technical expert will help you consider technical aspects that will affect your budget and occur from the special characteristics of each plot.

For example:

  • -The building rights and restrictions.
  • -The plot’s elevations and expenses that will may be necessary.
  • -The access to the plot and the location of the future house within the plot.
  • -Other special advantages and disadvantages that only an expert has the experience and knowledge to recognise and analyse.

So after you visit the plots that are within your pre-determined acceptable range of prices, ask again for the consultancy of your technical expert (Architect / Engineer / Contractor). There always can be critical parameters that you are maybe not able to realise yourself.

Tip#4: Design on Budget

After your have obtained the plot of land, comes one of the most determinant step for the budget and this is the Design!

Before the design process starts, take some time and make clear to the architects what your priorities are.

If for you the first priority is to take advantage of the maximum available building rights and make an architectural jewel regardless the costs…then OK! But if your first priority is to maintain the pre - determined budget it is important to give this information to the architect in order to consider it at the design process.

Tip#5: Hire a General Contractor

After the design is finished, the next important step that needs to be followed before the issuance of the building permit is to obtain the final budget. The only way to have a concrete idea regarding the budget and lock the costs even before you start building, is to ask for the services of a General Contractor.

A General Contractor will normally make an analytical cost calculation and will be able to give you at this early stage the precise construction costs and also inform you about any uncertainties that will maybe affect the construction budget. This cost calculation will have to be precise, so that if you approve it, there will be no surprises during the execution of the project. In case of risks and uncertainties that cannot be precisely quantified and determined by the Contractor at this early stage, keep a budget as a safety pillow that will cover these uncertainties.

In case the designed project exceeds your available budget, you will still have the chance to redesign the project with your architect and avoid losing time, money and eliminate any financial risk.

In Euroimmo, we offer end-to-end services, as our Team consists of property specialists - agents who support the buyers during the process of the property research - purchase and also of architects and engineers who are available for advice / consultancy at the pre-purchase stage and also for the process of the Design and Construction.

Every project’s budget is precisely determined before the stage of the building permit application, to ensure that no time and money will be wasted.