Building your own house is a dream many people have. From the number of bathrooms to where the house itself is built, what could be better than making sure you touch every detail along the way? To make sure everything goes as planned, it is important to understand some hidden costs you may run into along the way.
Getting Everything in Place Before Construction Begins
The price of your land combined with what it costs to prepare the land can be jarring, depending on what needs to be done. For example, if you plan to build in an area that is heavily populated with trees, expect to pay a clearing cost. Even after the clearing cost, there can be additional debris removal. You might also have to fill holes with dirt or, on the opposite end, hire someone to level your lot out. Another thing to consider are the upgrades. When touring a model home, or viewing plans, it is easy to forget that a detail you fall in love with is actually an extra cost. Think gorgeous hardwood floors… Maybe those aren’t included in the base model. Make sure when you are touring a model home, ask a lot of questions, and distinguish between what is included and what is considered an upgrade so you aren’t shocked by a surprise cost down the line.
During the Building Process
Even if you are planning on building your home on your own, remember you aren’t truly building it yourself, meaning money needs to be set aside for hiring the builder of your choosing. Depending on whom you hire, you might have to pay a fixed price or pay cost-plus, which is essentially paying for construction in addition to paying a fee to the builder. Also, consider setting aside a safety-net budget for any surprises that may surface during the building process.
Closing costs. Closing costs are not included in the original building price, and even after closing, the costs can feel like they are still piling up. One thing you’ll want in your brand-new home are brand new appliances—don’t forget to set aside a budget for appliances. Along the same line, you’ll need to furnish your own home, and very few newly-built homes come with window coverings such as blinds or curtains.
The Bottom Line
Building a brand-new home is a difficult, yet rewarding process. Knowing what to expect before you begin is incredibly important. Another resource that people can often overlook is time. Make sure that in addition to figuring out your monetary budget, you budget your time as well. Once you’ve accounted for all possible hidden costs and really thought everything through, you should be ready to budget properly and get started. What are you waiting for—contact us today and let us help you get started on your new dream home!