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Don't Forget to Budget These! 5 Costs to Build a Home That Are Often Overlooked

Build a Home

You've got the funds, assembled the building crew...it's time to build your dream home!

But as you go, you notice money flying out of your hands faster than you can bring it in! Soon, the whole project has turned into little more than a destitute money pit!

Ok, so we're exaggerating a little. But if you aren't careful, the sneakier costs of building a home will come around to bite you in the butt. But what are these costs?

Well, we're glad you asked. It's time to break down the top 5 parts of the cost to build a home that gets overlooked!

But enough talk, right? Let's dive in!

1. The Cost to Build a Home Depends on Location

A lot of the hidden variables regarding the cost of building your house revolve around where you decide to build the house. For example, let's say you want to build a house in a neighborhood that has a homeowner's association (or HWA).

Your house will have to adhere to the rules said by the HWA or you will get hit with fees/be forced to move. So before you lay down $10,000 for that sweet new swimming pool in your backyard, make sure your local HWA is cool with it. Adhering to your state's regulations for houses will also keep your budget from taking unexpected hits.

Another location factor to consider is the geographical layout of the area you plan to build in. Make sure you know what kind of weather the area receives or if there are any "out of the ordinary" features on your property (like creeks). Key things to look for include making sure that your property is sloped (so water can run off it and not build up) and that water will get taken away from the foundation of the house.

This way, you'll know if you need to invest in something like a backup generator or a sump pump to counter these phenomena.

You should also hire a professional to check the structure of the ground underneath your home. Not checking the soil could lead to your house settling on an unstable foundation, meaning you're either coughing up extra cash to either fix your home down the line or dig up everything so a crew can remove rocks and fix the soil layout.

2. Draw Up the Plans

Another hidden cost some home builders miss is getting all the plans worked out for the different systems in your house. Creating a rough-in (or rough draft) for your plumbing starts easy enough, but you have to remember to include any water filtration systems, humidifiers, or fountains you want to install (rather than just the essentials).

You'll also want to have an idea of how you're going to bring utilities like phone lines to your house and factor in the costs of getting those set up. On top of that, make sure you set some of your budget aside for the rough-ins of any future installations you want to do. This helps cover you if there's something you decide you want to add halfway through the process when your budget's already set in stone.

Keep in mind that you will have to pay a fee to connect your house to city sewer systems as well.

3. Break in Case of Emergency

Next on the list is making sure you've got all the costs associated with keeping you safe if something goes wrong out of the way. One cost that gets neglected is that of testing the strength of the materials you want to use (like concrete) off-site to make sure they're up to snuff.

Another cost comes in with securing homeowner's insurance for your house while it's getting built. This way, if someone or something gets damaged during construction, you won't be the one coughing up the direct cash to pay for it. If you stack on some contractor's insurance, you can also get protection for your materials in the event they get stolen.

4. Covering the Hidden Costs of Construction

When constructing your house, it's easy to leap headfirst into production without taking stock of your materials. Make sure you do so: failing to could lead to you over or under-estimating the number of materials you need, leaving you with either a surplus (and wasted money) or a need to dip into the cash pool again.

It's also important to take your time and do research on the construction company you're hiring to handle the labor. Check that they have all the proper licenses (so you know they'll do a solid job) and insurance (so if they get hurt, you won't get held responsible). Asking around for references or checking their work history isn't a bad idea either.

It's also worth noting that a lot of people fail to count the fees they'll need to pay to move everything over once the house is constructed. Moving fees don't tend to lean too into the high-price range, but keeping track f them will help keep your budget lean and healthy.

5. Of Mortgages and Legal Fees

Last but not least comes the hidden cost of working out all the legal fees you have to pay. If you're taking out a loan of any kind, working the payments of said loan (as well as any filing fees) into your general budget plan will help you stay ahead of any nasty surprises.

You can also use mortgage calculators (like the one offered by Jake Taylor Home Loans) to help pit different loan offers against each other so you can see which one fits you best.

From Dream to Reality

And there you have it! Now that you know the top 5 parts of the cost to build a home that most people overlook, you're ready to get out there and take the first steps toward making your dream home a reality! And if you want to learn more about home improvement and forging your path as you see fit, come check out the other articles on our blog!

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