I'm interested in building a modular SFH in the NJ area. I already have a builder and got a preliminary cost sheet. I was wondering if any of the more experienced investors out there have any idea of the additional costs that will come up during the project that they did not anticipate?
I'm trying to build and get an as detailed understanding of my budget and costs.
Professional · Redding, CA · Member since 2017 · 123 posts · 81 votes
7y
Take whatever budget you are given and add 20%. If looking at that new number scares you, then you may want to rethink doing the project.
But in all seriousness, add a contingency line item to your budget. We use anywhere from 5 - 10% depending on project flexibility. SFH are not incredibly complicated, but where they get tricky is how they interface with the ground at your particular site. May be a good idea to ask this question of your local building department to see if they have any knowledge of the particular site you are looking into developing.
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
@Miriam Levitz most builders will have allowances in their contract - you will later find out that they are the absolute bare minimum. You may need a few more loads of stone, you will needs a few more light fixtures and you may not like the cheap flooring. You may find another 10% in upgrades. Also check with the city on impact fees. And how much do you need for utilities, gas, water, sewer etc.
Take whatever budget you are given and add 20%. If looking at that new number scares you, then you may want to rethink doing the project.
But in all seriousness, add a contingency line item to your budget. We use anywhere from 5 - 10% depending on project flexibility. SFH are not incredibly complicated, but where they get tricky is how they interface with the ground at your particular site. May be a good idea to ask this question of your local building department to see if they have any knowledge of the particular site you are looking into developing.
Thanks for taking the time to answer! I definitely will do go ahead and talk to them.