It can be a very exciting time when you are start the process of building a custom home. Sadly, what most people do not realize is there are additional costs over and above the construction of the home. If your budget is $750,000, not all of that money will be used for the home, per se, so we wanted to offer a bit more insight into the costs associated with building a new home.
If you are buying a home for a designer in development, this is not a concern. However, if you are doing the home from the ground up, finding the plot will play a significant role in the home-building process. This is especially true if you are buying land in an area that is not already fitted for electricity, plumbing, and cable.
Architect and Design Fees
The dream all starts with a plan that gets turned into blueprints, 3D models, and virtual tours of the home. This all costs money, sometimes a flat rate, sometimes a percentage of the cost of the home, and sometimes an hourly rate. These fees are over and above all other costs.
Actual Construction Costs
This is where the majority of the money will be spent:
- Labor – contractors, subcontractors, and skilled labor
- Materials – from bricks to fittings and fixtures
- Equipment – any additional equipment that would be needed to be rented for the job
- Permits – all permits carry fees for building construction
- Utility connections – there is always a connection fee, but if the area is not already set up for residential use, you may experience additional fees
- Interior design – everything from furniture to window treatments
- Landscaping – the outdoor design to complement the home
- Contingency fund (recommended at least 10 percent of the budget)
- Post-construction costs (such as HOA fees)
As you can see, these costs can add up rather quickly, especially when there are unexpected delays, such as supply chain issues, staffing issues, or weather. Even the smallest interruption to the construction schedule can create significant delays.
This is why we recommend hiring a residential construction project manager to oversee your custom home build. This is your eyes and ears that will be onsite to troubleshoot any problems that may arise. This can be the difference is a small hiccup to a delay that could push back construction weeks as well as cost you tens of thousands of dollars more than initially anticipated.
If you are considering building a new custom home, consider using Better Build Now as your residential construction project manager. For more information about this service, give us a call at 888-402-4180.