Before you hire anyone, it helps to know roughly what your rebuild will cost and where the money will come from. A simple budget will make every later conversation with architects, lenders and contractors easier, and it keeps you from agreeing to a plan you cannot pay for.
Start with what you know
Write down the money you expect to have available: insurance payments, savings, grants, and any loan you may qualify for. Mark which amounts are confirmed and which are only hoped for, because a promised payment that arrives late can stall a project just as well as a missing one.
Next to that list, write what you need to pay for. Most rebuild budgets include design and engineering, permits and fees, debris removal, construction, utilities, landscaping, and furnishing the finished home. People often forget the items outside the walls, such as driveways, retaining walls and fencing, so ask your designer to include them.
Ask for ranges, not single numbers
Early estimates are guesses, and honest builders will give you a range. Costs per square foot vary a lot with the lot, the materials and the design, so treat any single number you hear online with caution. Ask two or three builders for a rough range for the same plan and compare them. If one number is far below the rest, ask what has been left out.
Keep a cushion
Set aside at least ten percent of the construction cost for surprises. Soil conditions, price changes and design changes are common, and a cushion keeps a small surprise from becoming a stalled project. If you do not use it, you have extra money for finishing touches at the end.
Review it as you go
Update your budget each time you receive a bid, make a decision or pay a bill. A budget you check monthly will warn you early, while there is still time to adjust the plan. Keep it in one simple spreadsheet or notebook so that you, your lender and your builder are all looking at the same numbers.
