“I Wish I Would Have Known: Unexpected New Build Budget Busters (and How to Avoid Them)”

You are already picturing yourself living in your new home!  But you have a nagging thought in the back of your mind as you prep for your build….”what have your forgotten to consider and account for in your budgeting plan??  What are the hidden line items that you don’t know could leave you on the hook for extra costs?”  Good news!!  Although, yes, there are some things you just can’t plan for; weather delays or inaccurate plans, we are here to share with you a list of commonly overlooked “incidentals” that when not planned for, can really blow your budget. Read on to discover what areas to plan for, intentionally leaving padding in your new build budget, which will save you so much frustration and help keep you on track

Land costs

Some of the sneakiest budget busters can drain your budget before you even pour a foundation. Land development and improvement costs aren’t always factored into the “total” when estimating your overall build budget.  Be sure to discuss this with your builder specifically asking about…

Lot improvements: Does your lot need sewer and electrical lines run to it?  Depending on how far you are from the closest sewer line (or if you’re going with a septic system in more rural developments), you might be looking at a few thousand dollars before your lot is buildable and you need to know if this is cost is accounted for or if you’ll need to add improvement costs to your overall budget.

Soil conditions: The type of soil that fills your building lot makes a huge difference in what you can actually build.  You (or your builder) will need to procure a soil report and confirm that your new home will be structurally engineered for what your soil can bear. Should you or the builder choose to bypass this step, or ignore the report, you could end up with pricey repairs or further excavation requirements before your home is even started.

Site plan changes: Many new build clients will choose to work with an architect to create a site plan for their home.  Deciding where on the lot to build is an important decision, and once made, all of the site plans will be geared toward that exact placement.  You can certainly change your mind, however, if you decide you’d like your home in a different spot, be prepared to take a chunk out of your budget. Even if you haven’t started building, the new plan will cost you. If the building has already started, it’ll cost you even more.

City costs

Wherever you build, the city, town, or county takes a cut. If you’re not aware, you might not have planned for budget busters that are paid to the city rather than your builder. Some builders will have included these fees in their estimates…and others will not.  Be sure to ask!

Impact fees: A tax paid to the city for the privilege of building there, impact fees usually go toward things like parks, road maintenance, and other public services you’ll use. They can range from a couple thousand dollars to $10k+, so ask your builder about the fees and whether or not they’re included in the build price.

Permits: Every time you submit a permit to the county, you’ll pay a fee. Besides the obvious need for a building permit, there might be additional permits, and their associated fees, required throughout the process. Each municipality is different.  Be prepared for the permit process upfront and it won’t take you off guard.

Code infractions: Each city has rules for home design and building and ignoring them could leave you with a fine and an expensive redo. Your designer and builder know the code, so don’t push them to create a home that doesn’t adhere…stick to the code!

Home “finishing” costs

So you have navigated the build and you are all ready to take the keys…but are you??  There are a few more finishing details that may take you by surprise before the boxes can be unpacked. Watch out for these….

Window treatments: Love all these new windows….but don’t forget the privacy plan. Whether you go with draperies, blinds, shutters or another treatment, covering all or even some of your brand new windows can be pricey…so plan ahead and don’t let this be an expensive afterthought.

Bathroom hardware: Does your dream bathroom budget include shower curtain rods or custom glass doors?  What about mirrors and towel hooks?  Many builders consider these additions “cosmetic” and do not include these in their basic packages.  Understand well in advance if these functional fixtures that make your home livable are included in your budget…or not!  

Landscaping: Landscaping isn’t always included in your builder’s estimate, so ask up front. Putting in sod, pouring asphalt, and planting trees can make up a significant cost at the tail-end of an already expensive build, especially if you aren’t expecting it! And typically there is a minimum amount of landscaping that must be completed in order to get your certificate of occupancy…so, it cannot be put off until a later date!

Mid-project upgrades: Many folks start of thinking the upgrades are not needed.  For example, you convince yourself you can totally get away with entry-level appliances but then one you see them in person or see the upgrade options, you change your mind. Or perhaps you decide last-minute to swap put the jetted freestanding tub instead of having the standard shower installed.  When you make upgrades during the build process, expect your final price to increase. And if you have planned ahead and set aside a contingency budget you will be able to enjoy the upgrade and not feel money stress!

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