hey friend, 

get to know me

I'm Carrie Barker.

I'm here to simplify the home build planning and design process so that YOU can build your dream home with more confidence, less regrets, and a plan to create and stick to a realistic budget.

home build planning

Browse home build tips

Floor plan creation

home build budget

design finishes

get the freebie!

home decor

Browse design tips

design finishes

Follow along:

Home Build prep guide

freebie!

Home Build Budget

Why Most People Go Over Budget When Building

Published on:

9/02/20

written by:

Carrie Barker

share:

Does this sound familiar? You’re planning to build a home for the first time and you have soooo many questions and worries, but going over budget when building is your biggest concern.

This fear is very valid considering most people do (unfortunately) go over budget when building a home. However, this doesn’t have to be YOUR story!

In this post, I’ll share why *most* people go over budget when building a home. Just remember that you can do the opposite and you’ll have a much better chance of NOT blowing your budget!

Many people who build a home think you can make design decisions along the way … tweak your budget along the way … focus on one little piece of the home build at a time without having a full picture of what you want your home build experience to be like.

Guess what these people end up with … a mortgage that is WAY higher than they are comfortable with!

I don’t want this to happen to you. Let’s take a look at 3 of the top reasons people tend to creep significantly over their budget.

3 REASONS PEOPLE GO OVER BUDGET WHILE BUILDING

The first two reasons go hand-in-hand, so I’m combining them here:

1+2. NO VISION FOR FUTURE HOME + DON’T HAVE A REALISTIC BUDGET

Without a very clear vision of your future home, your builder will be unable to give you an accurate (realistic) bid on what it will cost to build your home.

Many people who build a home are so excited to get started that they don’t take the time to really consider all aspects of how they want their home to look and feel.

They don’t take the time to thoroughly consider layout (floor plan needs) and finishes before they have their builder quote their home.

Here’s the problem with that … your quote will be based on an incomplete picture of what you want in your future home.

If you aren’t honest with your builder (and yourself) long before you break ground, then he/she can’t come up with an accurate bid.

Without an accurate bid (i.e. based on EVERYTHING you envision in your home), it is very likely that you will go into your build WITHOUT a realistic budget. And without a realistic budget, you can kiss your chances of staying on budget ‘goodbye’.

Of course, you can’t predict everything; some issues will come up that are out of your control and require a change order (e.g. a discontinued product), BUT many change orders and ‘upgrades’ are simply a result of a lack of planning before you build.

3. ACCEPTING THE LOWEST BID

Not all ‘lowest bids’ are bad. However, some times when you accept the lowest bid to save money, you’ll find that you go WAY over that initial bid as you get into the thick of building.

Unfortunately, it’ll be too late to change course at that point and you’ll have no choice but to continue increasing your construction loan and subsequent mortgage.

Keep this in mind … if you get three bids and one is significantly lower than the other two, I recommend that you really give thought to how this bid was determined before you choose that builder.

Going over budget when building a home is NOT inevitable. This is YOUR story and YOU are in control of how the story ends.

You CAN stay on budget … it just takes the right planning and preparation before you ever even think about breaking ground on your new home.

Learn the five steps to prepare for a home with less stress, more confidence, and a strategic budget plan in my *FREE* Custom Home Build Prep Guide.

  1. Jodi says:

    I just read this post ONE day after it was in my inbox. I tried to sign up for the free custom home prep guide and it said the offer already “expired?!”

    • Hi Jodi! You should have received the FREE Custom Home Build Prep Guide in your email. The free guide does NOT expire … it automatically goes to your inbox. If you don’t see it, please check your junk folder in case it accidentally landed there. As far as the ‘offer expired’ that you’re referring to … that is NOT for the free guide. That is a special offer that I present to new email subscribers. That does expire after 20 minutes. However, the guide you signed up for should be in your email inbox. Please let me know if you can’t find it and I’ll send it to you ASAP! – Carrie

  2. Diana K LaRose says:

    I would love to explore your site, but that thin, pastel font – I can’t even see it! Please consider a new design with a more readable font.

    • Thank you for your input on my website … I’m sorry that you don’t approve of it. I’m actually in the process of completely revamping my website and my new (highly improved) custom website will launch in just a few months! Until then, I’m stuck with what I chose four years ago when I built this website.

  3. […] Many people go over budget because they wait until they’re already building their home to really think about what they want (i.e. they make ‘upgrades’ in real-time while their house is being built).  […]

Leave a Reply

Your email address will not be published. Required fields are marked *

DREAMING OF BUILDING A                   HOME BUT AREN’T SURE WHERE TO START?

Get My free  
Home Build Prep Guide

yes! I need this!

custom

home build prep guide

the

I designed my own custom home from the ground up, inside and out. A home that is cozy, comfy, laid out perfectly for the way my family lives, and makes us happy every single day. Oh, and did I mention I did this all without blowing the budget?! 

Yep, it’s true. I’ve been there, done that, and actually lived through it … and you will too. Pinkie promise!

a.k.a. Caroline on Design

I’m Carrie Barker.

hey there,

Follow me on instagram!

@carolineondesign