Top 5 Causes of Budget Blowout When Building a New Home

15 August 2016

Building a house on a budget? That’s a smart move, but did you know that most people who build a new home go over their home building budget? This is somewhat surprising considering most people who choose to build a new home do so to try and save money because building new is more cost-effective than buying an older home and renovating! There are lots of different reasons why your new home build can run over budget. Here are the top five causes of budget blowout when building a new home.

1. Not enough time spent planning

Most people who’ve built often say they wish they’d spent more time planning their build before construction actually started. It’s much easier to change things on a floor plan than it is to start moving bricks and mortar or changing plumbing and wiring. You may be keen to get started, but you’ll save time in the long run by spending more time on planning in the early stages to ensure you get the right floor plan for your current and future needs.

2. Poor quality documentation

Vague or poor quality documentation can affect the accuracy of the quote you receive. It means that everyone involved in the quoting process has to make assumptions. This leaves room for error and costing inaccuracies and avoiding this is one of many reasons why you need to choose the right home builder.

3. Dreaming too big

It’s natural to want to get exactly what you want when you build your dream home. But unfortunately most of us have a limited budget! Sure, it’s important to plan upfront – it saves time and money in the long run. But you also have to understand the cost implications of the choices you make. For example, high ceilings will require non-standard windows and could also increase the cost of internal lining, external cladding, lighting and scaffolding. This all adds up! So carefully consider the initial decisions you make. A good builder should be able to help guide you through this process.

4. Taking too long

Overrunning the project timeline is quite common. But remember, time is money when it comes to building a home. Delays can mean having to find different tradespeople, make additional interest payments, and having to extend approvals. These are all costly outcomes that can be avoided by sticking to the original timeline.

5. Making changes on site

As mentioned above, when you’re in the planning stage, making changes is relatively inexpensive. But the minute dirt is turned on site, every change (known as a variation) will cost you – in both time and money. So if you decide that you want to make changes on site, be prepared for budget blowouts.

To find out how you can avoid the pitfalls that lead to budget blowout, check out these 5 top tips to avoid budget blowout when building a new home. Choosing the right home builder can also help — Hallmark Homes can also make sure you stick to your home building budget with our Fixed-Price Guarantee.

In addition to sticking with your home building budget, the Hallmark Homes team is ready to help you with any other queries you may have regarding your new home. If you have any questions about our extensive range of home designs, including acreage and narrow lot home designs, or the house and land packages we currently have available, please contact Hallmark Homes today.

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