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How To Prepare For A Knockdown Rebuild

Are you dreaming of a new home but feel overwhelmed by the financial aspects of a knockdown rebuild project? 

Don’t fret; you are not alone!

Many homeowners face the same dilemma of not knowing where to start when it comes to budgeting for a knockdown rebuild. The confusion often arises from the common misconception that the price of a home built with a volume builder is applicable to a custom knockdown rebuild project. 

So how can you navigate this process? 

Set Realistic Expectations

One of the biggest hurdles you will encounter when considering a knockdown rebuild are the unrealistic expectations about the costs involved. 

It is common to see commercials creating impossible expectations about the overall expenses required in these projects. Advertisements from volume builders may showcase a three-bedroom home with a single bathroom priced at $290,000. However, according to a recent study done by RealEstate.com, a custom knockdown rebuild project can cost anywhere between $350,000 to $750,000. Understandably, this significant mismatch can lead to disappointment when individuals realise that their budgets fall short.

These misconceptions can confuse you and make you question your capacity to fund this type of project. Feeling this way may leave you hesitate to take action or even consider abandoning the idea altogether, which will further delay your dreams of living in your forever home.

So what action can you take next?

Do Your Research

The key to overcoming these challenges lies primarily in professional guidance and adequate research. Understanding the fundamental differences between a cookie-cutter volume-built home and a custom knockdown rebuild is crucial. A professional builder can provide invaluable insights that will guide you through the process and ensure that your expectations are not only achievable, but also remain aligned with your budget.

By engaging with a professional builder, you can gain a comprehensive understanding of the various aspects that need to be considered. This knowledge will help you uncover hidden costs that are often overlooked such as demolition expenses, removal of existing structures, and dealing with significant trees. It’s important to remember that a knockdown rebuild requires additional site work and preparation that is not typically included in the costs presented by volume builders.

How A Knockdown Rebuild Differs From A New Home

It can be easy to make the comparison that a knockdown rebuild is the same as a new home on a vacant block,  but here are some things that you may not have considered that make a knockdown rebuild fundamentally different to a new home.

Account For Demolition And Asbestos Removal: When planning a knockdown rebuild, ensure you account for the additional costs of demolishing the existing structure and any necessary asbestos removal.

Consider Your New Home Foundations: Where your existing home foundations were already in place, the new footings for your new custom home must be carefully designed around them. A professional builder will make sure the engineering plans account for this and no hidden problems surface while on site. 

Factoring In Disconnections: Don’t overlook the expenses associated with disconnecting electrical, sewer, gas, and other services, as well as making the site safe for the actual construction.

Retaining Walls And Drainage: Depending on the terrain and site conditions, retaining walls and proper drainage may be necessary. These are crucial elements that need to be considered and budgeted for.

Complete The Package: A new home will typically only include the cost for the house construction, where a knockdown rebuild project should be a turn-key solution, meaning that once your new home is completed, you can turn the key and start living. 

Working with a professional builder who understands the intricacies and specifics of a knockdown rebuild can ensure a seamless process from start to finish. Their knowledge and experience in all aspects including demolition, site preparation, and final touches, will save you the hassle and the stress of the unknown.

Embarking on a knockdown rebuild journey can be a daunting task, especially when it comes to financial planning. Finding the right builder is just one of the 6 Essential Things You Must Do For A Successful Home Renovation. Download our FREE guide now to read about the rest.

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