Affordability is consistently ranked as the top concern for people shopping for a new home. It’s no surprise that homebuyers like you want to ensure that they are getting a good deal, regardless of whether you’re a first-time buyer or a more seasoned homeowner who is looking for your dream home.

If you’re considering purchasing your first custom home, you might be particularly concerned about price. Many customers fear that custom homebuilding will include a variety of hidden costs that will bust their budget before the house is even complete. In reality, there are only a few obstacles that can lead to additional costs during the building process. By familiarizing yourself with them early in the project, you’ll be in a better position to avoid them altogether.

Custom Home Building’s ‘Hidden’ Costs

Most customers do not experience unexpected costs during their custom build project. However, occasionally changes to the construction plan, as well as factors outside of the builder’s and the customer’s control, can require a bit more funding in the midst of a project.

Let’s take a look at some of the most common sources of additional costs:

Changes to the site plan.  Customers can encounter added costs if changes are made to the site plan after the site development budget is finalized. This could include changes requested by the customer, as well as changes that end up being required due to discovery upon excavation. For example, if we find a well spring while digging your basement, this issue will have to be taken care of immediately before we continue with anything else to prevent your basement from flooding in the future.

Soil conditions. In some cases, the condition of the soil at the build site can lead to unexpected costs because it complicates the excavation process. In general, one of the following tends to happen: Either the soil is very soft or it has a high water table, there are a lot of large rocks or boulders, or the construction team is running into bedrock just below the surface.

In each case, homebuyers will need to invest a bit more in the site development stage in order to ensure that their home can be built correctly. Soft soil in particular costs more because it has lower bearing capacity, which will require wider foundation footing for the home.

We help prepare for these types of costs by hiring a geotechnical engineer or consultant during the Design and Estimation stages. Long before construction even begins, we have them examine the soils so we can better predict what we might encounter during excavation.

Weather delays. Excess precipitation can also lead to construction delays. If the site requires extended dry-out time because of rain or snow, this may lead to additional costs if the project is significantly delayed. Sometimes excessive rains can cause mudslides causing us to have to redo parts of the excavation work before continuing. These are all added costs if they happen.

A sloped lot. The grading of the land might also impact your budget. Sloped lots may require extra excavation costs, as well as additional foundation, lumber, and siding. Depending on the floorplan and the degree of slope, the house may also necessitate a deck.

Wildlife. It’s not uncommon to discover wildlife, such as gophers, living on the property. In some cases, we will be required to gain a permit from the U.S. Fish and Wildlife Service to create a mitigation plan for the animals to ensure the construction process accounts for habitat conservation. This process can sometimes lead to delays and unexpected costs.

Impact fees. The city or county in which we build may also tack on a few additional fees. Many jurisdictions have specific development and impact fees that are applicable to specific zoning areas. We do our best to consult with the jurisdiction prior to the construction phase so that we can accurately account for all the necessary impact fees and ensure there are no surprises.

Permitting process. Every jurisdiction can vary for their permitting turn times. While some will have plans fully approved within two weeks others can take several months. They all have different ways of charging as well. We take care of the permitting process for you, but should a land deal not work out and we end up looking for land elsewhere, it’s possible the permitting process could cost extra.

Other unexpected site problems. Finally, buyers should be aware of other unexpected issues, such as site easements and restrictions, that may emerge during the site development and construction phases. To help us avoid these types of costs we properly research the property—before we begin building. But research can only take us so far. There will always be hidden, unknown variables that must be discovered along the way.