Creating a custom built home is a dream come true for many homeowners. However, the vast array of decisions both creative and practical can open the door to expenses that add up quickly. Additionally, there are some expenses that are often unexpected or overlooked when budgeting for a design-bid custom home. While homeowners that choose the design-build method are far less likely to bear the burden of these unexpected costs, all consumers choosing to build a custom home should be aware of these potential budgeting pitfalls to prevent the process of building a dream home from becoming a nightmare.
Weather
The impact of weather on construction costs cannot be overlooked. Construction can be delayed or come to a complete halt due to rain, snow or extreme cold. This is especially true in areas with high levels of precipitation such as Little Rock, Arkansas, Knoxville, Tennessee and Cleveland, Ohio with an average of 104, 127 and 155 days each year of rain or snow respectively. Experienced custom homebuilders will attempt to plan for these expenses but Mother Nature is often unpredictable. Delivery of supplies needed for construction can also be delayed due to adverse weather causing additional expenses.
Land
Preparing the land for construction is usually not the responsibility of the builder. This expense can be an unwelcome surprise to many homeowners. Hidden anomalies such as a shale formation or large boulder can cost thousands of dollars. Excavation and drainage costs are increased if the site is not level or there is and unexpected subterranean spring. Approval from city or county officials is required to obtain permits. Those officials may require soil samples, retaining walls or other items at an additional expense. It is smart to require the excavation contractor to provide a detailed list of included expenses on the estimate and an overage guarantee with a cap.
Small Expenses
There are quite a few smaller expenses involved in building a custom home that can add up to considerable costs. Some items often not considered in the initial budget or design can include gutters, extra lights and electrical outlets. There are on-site construction costs that can add up to big dollars. Regular debris removal at the construction site can also be expensive over time. Construction workers may need to be able to utilize port-a-potties that are rented for the duration of the construction of the home. Because design-build custom homebuilders bring the contractors together under a single contract for the homeowner some of these expenses may be included in their budget and in most cases any cost overages are the responsibility of the homebuilder. However, consumers utilizing the design-bid method should be vigilant as these expenses are often hidden in the small print.
The exciting process of building a custom home is far more enjoyable when unexpected money woes don’t put a damper on the experience. It is a wise idea to have a cushion planned for unexpected expenses. An experienced custom homebuilder will be able to guide their clients as to the amount the client should put aside for these expenses.