If you’re building a new home, you’re likely struggling to get all the features you want while staying within your budget. Fortunately, there are ways to manage construction costs when building a house.

Developing a clear construction budget, getting an accurate building estimate and making wise decisions can all help keep the costs of building a home under control. By taking these and other steps, you can minimize the chances that you’ll end up over budget.

Planning Your Construction Budget

In general, the best way to control building costs is to have a clear budget early in the process. That means that before you look at house plans, find an architect or buy a lot, you should know how much you are willing (or able) to spend on your new home.

Often it’s a good idea to figure out what kind of monthly mortgage payment you can afford, and use that to determine how much you can spend.  If your decide that your overall budget is $300,000, you will want to work backwards from there, keeping that number in mind as you make all your other decisions.

Controlling Construction Costs

Because construction costs can vary significantly from project to project, it can be next to impossible to get a sense of what your expenses will be without getting professional advice. Talking to an architect about your specific budget and needs is one way to figure out what kind of house you can actually afford to build. A qualified architect will have experience managing building projects and be familiar with construction materials, and she can use that knowledge to help you make the most of your money.

In general, the more prepared you are going into the process of meeting with your architect and builder, the more likely it is that you’ll end up with an accurate estimate of the total building construction cost. Having clear construction plans and making decisions early will help your contractor develop an accurate construction estimate for your project.

However, no matter how well you plan, there’s a good chance you’ll face some unexpected expenses as your home is being built. It’s a good idea to build a cushion of about 10 percent into your budget to help deal with some of these extra costs.

Managing Costs: Steps to Take

As you build, there are several things you can do to manage expenses. These include:

• Avoid change orders. Don’t decide to change some aspect of the building plan at the last minute, as this can add substantially to the overall cost of the home, sometimes in unexpected ways.
• Choose less-expensive fixtures and finishes. Consider skipping some of the high-end choices for their more moderately priced equivalents.
• Distinguish between needs and wants. There are certain features that every home needs (such as a bathroom and kitchen). But do you really need a home theater or whirlpool tub?
• Keep it simple. An oddly shaped house costs more to build than a rectangular one.