Menu Close

Budgeting for a Custom Home | San Diego County

Evaluating Land & Site Improvement Costs

There’s a couple of different scenarios that we have owners come to us with that are looking to build a custom home.
  1. They already have land
  2. They need to purchase land

Scenario #1: Land Already Purchased

So, we’ve got to look at the site costs first. There are a number of different site improvements that have to happen in order to actually get that site buildable. So, what do you need to do to get the site ready to build? Any of the following could be needed:
  • Water well drilled
  • Septic System
  • 10,000-gallon water storage tank
  • Grading
  • Soils compaction testing
  • Electrical service
  • Underground Utilities
  • Solar system
  • Landscaping
  • Water Meter
  • Sewer Tie In
  • Sewer Extension
  • Driveway paving

So, if you’ve got land, we’re going to do the due diligence with the county or the city and figure out what needs to be done. Then we can determine how much money we’re going to spend on site costs. So, once we have that figured out, that’s going to leave us with a budget number for what we can spend on the plans, design, permits and the construction of your home.

Scenario #2: Land Needs to Be Purchased

So, the second scenario is you have to buy land. There’s just one additional step to what we’ve already talked about in scenario #1. When you are evaluating the land, you want to buy we will look at the site costs to see what we’re going to spend to get the lot buildable. This allows us to come up with a price to make an offer to purchase the land. We work backwards to establish the purchase price of the land.  So, if we know the costs needed for the site improvements, we can determine how much the land is worth.

This is something that we specialize in and love to help our clients with. Doing a good job on evaluating the site costs for the land on the front end will allow you to get your land bought at the right price and allow you to build the home that you want.

Budgeting for Building the Home

Once we have the site costs figured out and the purchase price of the lot has been determined we will take the total budget amount and subtract the land and site costs from that amount and that will give us the budget amount we have to build the home.

To get a rough estimate together for the home building costs we look at the level of finishes the customer wants and then figure out an average price per sq.ft. for their home based off previously completed projects with similar design and finishes. By doing that it gets us very close to the actual build costs of their home so we can start drawing plans that will meet their budget.


Why Work with a Design-Build Contractor?

The best way to make sure your custom home project is designed to meet your budget is to work with a design build contractor from the very beginning.
As a design-build contractor we are building everyday and know what the actual costs are to build. We are able to work with you on the very front end of your project to make sure everything including the land site costs and build costs are all suitable for your budget.

Information on Costs to Build a Custom Home!

Related Posts

Leave a Reply

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

Scroll to Top