Introduction We are going to talk about Building Construction Estimates to put together a budget for a residential remodeling project to see if the project is worth doing and also to make sure that you’re not putting more money into the property then you can get out of it if you want to sell it. It has been my experience as a building construction estimator that a budget is something that takes time to think through and also knowledge of construction to compile the budget, but it will save an Owner between 27% to 35% if the preliminary Building Construction Estimate is done properly. A budget should be assembled before you hire Architect or contact any Contractors. It is more cost effective for the Owner to know what the project is worth before any Building Construction is started this is where a building construction estimator that has been in the field is worth his weight in gold .
Property Values When I do a budget for Property owners if they do not have what their property value is the first item that I have them attend to this to is find out the prices of the homes around their neighborhood. This will give them an idea of what the other houses in the neighborhood are worth, then they can go to a realtor and have them do a comparable on their property to see what the residence is worth compared to the others around them. If their house is worth less than the residence in neighborhood then deduct the cost of the mean worth of all the properties in the neighborhood from your property
Mean value of residence in your area $239,462.00 Your house value $147,977.00 _________________ $ 91,485.00 To spend on your work.
Financing This is an important Item after you find out what your residence is worth and do the calculations to find out what the difference is in this case the Building Construction Estimate should not be any more that about $85,000 to $90,000 dollars. Go to a lending institution and fill out the paperwork for a note to do the work. They will take into consideration how much you owe on the house. You can show them that you did your homework by giving them the comparable that you had the realtor do for you. The bank in this economic climate will most likely have the residence appraised to make sure the value of the property is correct.
The building construction estimator can do a preliminary budget while the Bank is working on the Note I usually find out what the Owner wants done on his property. The Owner can either verbally tell me what he wants or make a one line sketch of what he is looking for, there also can be both mediums used verbal discussions and a few sketches so that I will understand what they are looking for. At this time most building construction estimators tell the Owners to look for the materials they want to use such as: type of light and plumb fixtures, cabinets and interior finishes including the color schemes they would like. The next item that has to be put together is a wish list of the rooms they want to do such as: Kitchen, Bathroom, Make basement into family room or put on an addition. I then put together a Preliminary Building Construction Budget for them to look over with allowances for item such as: Cabinets, plumbing fixtures, Lighting fixtures and interior finish materials with each one of the item on their wish list with a Building Construction Estimate next to the Item. At this time I would like to mention that if an addition is something that you want then you need to make sure you have enough room on your property to put an addition on. This information you can get from City hall and the Building Department for your city or town
Refining the Budget The final part of the whole exercise for the building construction estimator is to insert all the costs. The type of materials the rooms or addition that you want with all the fixtures and cabinets into a final budget, then go over the Building Construction Estimate to make sure everything that you want is in the Budget. On residences that are under 35000 CF I usually do a CAD drawing for the home owner with elevations so they can see what the rooms will look like when I present them with the final Budget. Home Owners can try to do this budgeting themselves if they have any kind to construction background, but in most cases a professional should be contacted to eliminate the pitfalls that befall the novices.
Conclusion At the end of the day once you have a building construction estimate a good building construction estimator can put a budget together for the entire project. The budget can be put together by the owners with some assistance from the lumber yards, plumbing supply, electrical supply, and paint supply stores. It is very time consuming to put the budget together if you have only a little experience with construction and Building Construction Estimates. If you forget something in the budget or the plans it costs 3 times as much to have it put in after you have a contract signed with a General Contractor.