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What to Expect Financially When Building Your Home in Miami

The honest truth is that the numbers need to add up when you’re building a custom home in Miami. And while – to some – that seems like a simple math equation, the reality is it’s as much art as it is science. 

It’s easy to get caught off guard as you’re going through the building of a new construction home as seemingly simple aspects can end up costing significantly more than most people think – at least, without the right planning beforehand.

Rule of Thumb Budgeting For New Construction in Miami

The starting point for all budgeting for new construction in Miami starts at the same spot – it  can be estimated to be roughly $300 per square foot. In other words, if you’re planning to build a 4,000 square foot home from the ground up you can generally estimate the new construction cost to be $1.2M (assuming you already purchased the land). 

This estimate typically includes all the fixings you would expect new construction to include: walls, floors, roof, materials, vendor costs, electrical, plumbing, appliances. But doesn’t account for the extras you will likely want for your home: a new pool and outdoor kitchen for example. 

But we are also dealing with a constantly shifting economy and material prices are (still) continuing to climb. Estimates that could at one time be good for a month or so are subject to change at a moment’s notice. 

This is why it is so important to work with an experienced architecture firm from the get-go. We always focus on designing the home of your dreams but also making it as easily buildable as possible. You don’t’ want to scrimp on materials, but you do want to make sure your builder is not sitting there twiddling their thumbs because the stone you imported from Italy is stuck in customs, or – even worse – the factory making the custom-sized PVC had a fire and is out of commission (we’ve heard of this happening – it’s why we always design for simple things aren’t a centerpiece of the home like PVC to be able to be bought at Home Depot). 

Focusing on ensuring your home is easily buildable keeps the most common cost overrun – contractors invoices – from occurring. Which leads us to our next point:

Structured Payments and Change Orders

The good news:  new construction projects, and large-scale renovation projects, come with structured payment schedules that allow you to space out your budget over the course of your project. 

Unfortunately, there is also bad news. Locking in your costs and getting shovels in the ground is great, but not if you’re going to need multiple change orders along the way.

Change orders made during your build phase can significantly alter your budget. But if you move things around with your architect in the planning phase it won’t. Simple as that. 

Additionally, in the design stage we can work on material selection and make sure all the pieces (like that marble from Italy for your countertops) that will have longer lead times are ordered well in advance so that construction is not slowed down in the least.  Being well-informed on how material selection, sourcing, and delivery can impact your budget will go a long way in keeping your financial expectations in check throughout the process.

As always, if you have questions about new construction or renovations here in Miami, don’t hesitate to give us a call.