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Budget Before A Home Design

A wise real estate agent will always counsel you against letting a seller know how much you are willing to spend before purchasing. This can be especially true in a home building project where disreputable, unlicensed contractors can take advantage of unwitting home-buyers. The big dilemma for many is they have no idea how much a project costs. Designing a home, without a budget in mind, can lead to wasted time and money.

The decision to share your budget information with your builder has to be based on trust. But, Homeowners should not be shy about checking licensing and insurance information for legitimacy. If you don’t feel comfortable disclosing a budget after a thorough review, find someone else.

Most lending institutions will issue pre-qualifying letters, and this amount has to be known if a project is to stay within budget. A pre-qualification letter does not mean that the project has to cost that much; rather, it gives the project owner the parameters.

Usually, the planning process for most custom homes or remodels is about 60 days. More project owners are coming into design offices prepared with information from the Internet. The problem is that many do not understand the cost of the goods and installation. Many times, consumers will view high-end products on the Internet that are beyond their construction budget.

Upfront, accurate budgeting with a custom builder is essential for most successful projects. Disclosing what you are willing to spend is essential. Having trust in your builder is required so that real expectations are set and thousands of dollars are not wasted on useless building plans.

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