The Building Process

Even small changes made after work begins can have surprising effects on the budget. Here’s why.

Minimizing change orders is one of the most effective things homeowners can do to control costs. The reason is that seemingly small changes can have cost impacts beyond the builder’s control—costs that ultimately are borne by the customer.

We’re not talking about unscrupulous contractors who write vague specifications to create low bids and then nickel-and-dime clients with change orders to increase profits.

Builders hear this question a lot. The answer, as with most such questions, is “It depends.” But on what?

People who haven’t built before often have an unrealistic concept of how long it can take to plan, budget, and build a home. Many variables can affect the timetable. Three that stand out are design, permitting, and site work.

Design. A stock plan the builder has previously built will take less time than a fully custom home,

New homes won’t be any more affordable in a year or two.

Potential homebuyers who are waiting for costs to come down before building might want to reconsider. The fact is that the past year’s rise in new home prices will most likely continue. While higher interest rates and a weak dollar could play a role, the biggest factors will likely be the most basic ones of supply and demand.

Simply put, the homebuilding industry predicts buyers will demand as many as 1.5 million new homes next year

Historically and traditionally, people have been conditioned to follow a certain, linear path to building a new home. That is, hire an architect or designer to create the plans, select a builder and then maybe bring in a stylist or interior designer to apply the finishing touches.

But the reality is that this step-by-step approach to getting a new house is not only outdated, but can be risky in terms of cost and quality. A better approach is to form your project team from the outset. Doing so fosters a cooperative rather than combative or competitive working environment that produces more satisfying results. It’s also a dynamic that’s more likely to ensure you’ll get what you want in a new home at the price you can afford.