How to Set a Budget for a Custom Home in Michigan

How to Set a Budget for a Custom Home in Michigan

Perhaps one of the most difficult aspects of home building is setting a budget. While it’s not hard to pick a number, it is stressful to go through your finances, talk to your lender or financial advisor, and finally decide to spend the money on building a brand new home. At Troxel Homes, we know setting a budget can feel overwhelming even before construction has begun, so whenever we meet with a new custom home client, we walk them through the Troxel Triangle. It’s a way to visualize the home building process, and it helps our clients understand how to set a budget that’s realistic for their project goals.

The Troxel Triangle has three points: Design, Selections, and Budget.

We ask that each client remain flexible on at least one of these points. The other two points can be fixed, but at least one of the points of the triangle has to be flexible for homeowners to truly get the most out of their custom home and keep the entire process as stress-free as possible.

For example, say a client has a set budget, and they really want their home to conform to a certain, rustic farmhouse style. If they’ve already got their hearts set on certain selections and specifications, like wood floors, granite countertops, and custom cabinets, then design would be the flexible point of their triangle. To ensure they got the selections they want while maintaining their budget, the design (size, square footage, and structural complexity of their home) would be the aspect that’s flexible.

On the other hand, say a client already has the blueprints complete of the beautiful custom home they want to build. Knowing the plans, if they have specific ideas of what selections and specifications would make up the interior, then their budget would need to be the flexible point of their triangle.

The Troxel Triangle offers an excellent way to keep your custom home building process on track while ensuring you get exactly the custom home you’ve always wanted. At Troxel Custom Homes, we will guide you through this process and will work with you every step of the way to ensure that we keep the triangle balanced and that you understand how a decision in one area affects the other two.

We know that we know that this all seems easier said than done, so here are a few tips to help you through the budget-setting process:

Separate Wants and Needs

One of the most important aspects of setting your budget is being able to separate your wants from your needs. Sure you want an indoor jacuzzi in the basement, but you need a separate room for each of your kids or a guest bedroom for when the grandkids stay over. If you’re having trouble, consider sitting down and making a wants/needs lists. This will help you visualize what you’re looking for in your custom home, and it will give you a better idea of a realistic budget range.

Remember Selections Affect Your Budget

Often, homeowners forget how much selections can affect budget. Even if you’re building a really small home, if you purchase the most expensive flooring, tile, and appliance options, your budget is going to go up. If certain luxury selections are important to you, remember that building a smaller home can help ensure that your budget stays in line (think back to the Troxel Triangle!)

Choose a Custom Home Builder Who Respects your Budget

Perhaps the most important aspect of setting a budget is choosing a builder who will respect it. You’ve worked hard to plan and budget for a custom home that’s totally yours, so you need a builder who will respect your vision and your budget. When you’re looking at custom builders, be sure to choose someone who has good references, and who historically comes in on budget and on time. Great custom builders can help you realize your dream home vision while sticking to your budget.

Having a budget that you are comfortable with is one of the most important steps of the custom home building process, and we know that once you’ve decided on a budget, you want to be able to trust that your builder will be a good steward of that money. At Troxel Custom Homes, we hold the utmost respect for our clients’ budget and we will work with you every step of the way to achieve your dream home. For more information on our custom building process, contact us online, give our office a call at 616-355-2600, or see images of our past projects on our website.