The real estate market has been a bit challenging over the last several years. But regardless of the state of the market when you are reading this, one thing remains true about Sarasota residential options – there is not a lot of vacant land left to facilitate a new home build. Many are choosing to buy an older existing home in the right neighborhood, and then either renovate or tear down the home to build an entirely new structure.

If you’ve decided to build your own home, it’s easy to feel a little overwhelmed at the start of the project. Like any significant undertaking, the first step is to understand your budget. It is essential to step back and figure out the desired scope of your project and how much you have allocated to achieve your goals.

Getting Started on the New Home Build Process

You’ll need to decide on the basic requirements for your new home build, such as:

  • How many bedrooms and bathrooms are needed?
  • How much square footage are you anticipating?
  • What are the specific benefits and challenges associated with the lot or location you have chosen?
  • What features do you consider “must-haves” ?

One of the best ways to put parameters around your new custom home build is to think about how you live in your current home – what works, what doesn’t work, and what needs to be changed? Establishing an itemized list of wants and needs is an excellent – and practical – starting point that builders can use to provide a rough cost estimate.  If you aren’t paying cash for the entire project, now is the time to get pre-approved for a construction in order to confirm that you have the funding to build the home you want. If your loan pre-approval comes back lower than you anticipated, you may need to consider a different location, type or size of the home.

Costs Involved in a New Construction Budget

Most architects or contractors will provide an estimated cost per square foot. Now that you have a range of cost, you can start to build your budget, including these key components:

Cost of the Lot:  The lot you purchase often represents a significant portion of your budget. It may take some time to identify an appropriate lot for your custom home build, taking into account the size of the desired house, any zoning requirements that may affect your plans, the aesthetic of the surrounding neighborhood an current infrastructure.

Cost of Excavation, Tear Down or Other Lot Prep: We mentioned in the introduction that there are not many vacant lots left withi Sarasota city limits or on the Keys. Some sellers remove an old bulding before listing a new lot, but many properties are older structures that represent tear-down opportunities. The cost of leveling the home and removing all materials and debris must be figured into the overall budget. Some vacant lots work before you can build – perhaps adding slopes or elevation to waterfront property. Depending on what you need to build, you may need to level the ground, remove trees, or add utilities.

Cost of Home Design Plans: No matter who hire to plan and design your new home – from a professional architect to a spec-home builder – there will be a cost associated with construction drawings and home design. However, this is no place to skimp on budget. If you want a comprehensive design plan from an experienced professional, it is best to find a design-build firm or local Sarasota architect.

Cost of the New Home Build:  This portion of the budget represents anything associated with the materials and labor involved in construction. This includes the foundation, the roof and everything in between – including framing, windows, doors and insulation.

Cost of Finishes and Appliances: Finishes, fixtures and appliances are the components that make your new house feel like complete. It is vital to decide on and establish a budget for these items sooner rather than later, as they can take months to be shipped and delivered. Change orders delay the building process and drive up the cost, so it is important to understand what you want from the beginning.

Cost of Curb Appeal: Most builders offer minimal landscaping in their building contracts. Typically grass seed or sod may be included, but any foundation plantings or landscaping design will need to be arranged for separately.

One of the best ways you can manage your budget is to contract with a firm that integrates all of these services into their agreement with you. JTL Studios can not only draw up your plans and manage your home build, but also deliver interior design and landscape design services.

A New Home Build Doesn’t Have to Be Overwhelming

While you may read the above article and feel out of your depth, JTL Studios is here to help. If you are considering a new home build project in the Sarasota area, come see us as soon as possible. We will be with you every step of the way, and take your vision from plans to occupancy.