John Jr. Piazza Construction - Design Build Renovate

Budget

The budget drives everything and everyone has a budget. The budget may be dictated by the bank or by your personal comfort level. Another item, which can affect your budget, is the reasonable fair market value for the home you are contemplating. Be prepared to discuss your budget constraints frankly with your designer and builder. Do this early on so that the guidelines for the rest of the process can be established. I hope that when you finish this review, you will understand that this exercise is done for no reason if the team does not have a budget guideline to go by. You should establish a budget ceiling and then use your professional team to find out how much lot and home you can fit into those limits. Some homebuyers try to be coy and not reveal their budget. Their only concern is to know how much per square foot a builder charges for the homes he builds. To this I would suggest an alternate scenario to consider. Picture a custom builder as if he were an automobile manufacture who builds everything from the bottom line Chevy to a top of the line Mercedes. A true custom home builder should have the ability to build this range of size and quality. Would you ask a “custom” automobile manufacture how much they charge per pound for a car? Probably not. The question would be nearly impossible to answer. The actual price for the car (price per pound) depends on what is included in the car and its relative quality. The same is true for a home.

The budget is composed of 5 basic elements- land, land development, home plans, specifications, and financing.

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