When looking for a builder at the start of your journey to build a new home, is a common question you may ask yourself.
Yes, it’s generally a good idea to tell your builder your budget. Knowing your budget can help your builder recommend appropriate materials and design options that fit within your budget. It can also help your builder identify areas where you may be able to save money or where you may need to spend more to achieve your desired outcome.
However, it’s important to be honest about your budget and to stick to it. If you give your builder an unrealistic budget, it can lead to disappointment and frustration if your desired outcome cannot be achieved within that budget. Additionally, if you change your budget midway through the project, it can lead to delays and additional costs.
It’s also important to choose a builder who is experienced and trustworthy, and who has a track record of completing projects within budget. This can give you confidence that your builder will work with you to achieve your desired outcome within your budget.
The building company’s role is not to make you spend more money, but deliver the best home for your budget. Many clients will also have their own contingency aside for any small variations they may wish to choose through the project.
It is really important that you have engaged with your lending partner and worked through understanding what your budget is, before you begin talking with a building company. This avoids wasting time and creating disappointment if you find your dream home plan, but cannot afford it.
Having a clear understanding of your needs and wants for the home and ranked will make the process much easier, as an important step in the process is value engineering your specifications to make the house fit to your budget.
Always make sure there is a good contingency in the cost of the project to allow for price fluctuations of materials and labour as the project time line can take up to a year from when you first engage a building company. The construction time line is only part of the entire process.