Have you ever started planning your dream home, only to realize unexpected costs are piling up? Building a custom home is an exciting process, but many homeowners face surprise expenses that weren’t in their original budget. At Vaughan Home Builders, we believe in full transparency, helping you prepare for these hidden costs before they disrupt your plans. Here’s what to watch out for so you can build with confidence.
Land Acquisition and Site Preparation
Availability of Utilities
When purchasing land, one of the biggest hidden costs is connecting to utilities. If you’re building in a new subdivision, you typically won’t face issues because infrastructure is already in place. However, if you’re building in an older neighborhood or on a rural lot, it’s a different story.
- Public Sewer Hookups: Tying into a public sewer line in a neighborhood can cost between $30,000 and $35,000, a significant expense many homeowners don’t anticipate. In contrast, installing a septic system in the country is a set cost, usually between $10,000 and $15,000.
- Water Main Access: If the water main is located across the street, you may need to cut into the street to access it, which can add $20,000 or more to your budget.
- Electricity Access: Some sellers may tell you that electricity is available, but that doesn’t mean it’s nearby. If power needs to be extended from another street, the costs can escalate quickly.
Unexpected Costs in Older Neighborhoods
Buying a lot in an older neighborhood may seem appealing, but be sure to ask the right questions. In some cases, even though sewer access is available, the city may require you to have a professional engineer design a new system. One builder encountered this firsthand when the city required a custom sewer design for two extra lots, costing $440,000. These are the types of unexpected expenses that can derail a budget.
Construction Phase Costs
Flooring, Tile, and Fixtures
Many homeowners get inspiration from home improvement shows, but those shows often skip over the real costs involved. The materials you choose can have a huge impact on your final budget.
- Tile Work: Tiling all the walls in a bathroom can be a luxury feature, but it comes at a high cost. Some specialty tiles can be significantly more expensive than others, and installation costs will vary based on complexity.
- Windows and Doors: The difference in price for similar products can be staggering. For example, you can spend $440,000 on windows or $8,000 for nearly identical windows, depending on the brand and supplier.
- Front Door Choices: A high-end Andersen front door with sidelights may cost $10,000, while a Therma-Tru option with the same design is only $3,000.
- Luxury Fixtures: Faucets with voice-activated controls can run $1,000+, while a standard Moen or Delta faucet costs around $100:$150.
- Lighting Costs: A simple light fixture may cost a few hundred dollars, but high-end dining room chandeliers can cost thousands.
Choosing the Right Materials
It’s crucial to shop wisely when selecting materials. Some suppliers charge premium prices for the same materials available elsewhere at a fraction of the cost. At Vaughan Home Builders, we guide our clients toward cost-effective options that maintain quality without inflating the budget.
Additional Expenses to Keep in Mind
Engineering and Permit Fees
Every custom home project requires engineering work and permits, and these costs can add up:
- Architectural Design: Hiring an architect typically costs $10:$12 per square foot.
- Engineering Assessments: If your home requires custom structural, mechanical, or electrical plans, additional fees will apply.
- Permit Fees: Vary widely by location, but often add several thousand dollars to the budget.
Temporary Living Expenses
If your build takes longer than expected, you may need to budget for temporary housing and storage. Delays can occur due to weather, labor shortages, or unforeseen construction issues.
How to Avoid Hidden Costs
1. Do Your Research Before Buying Land
If you’re considering building on a particular lot, ask detailed questions about utility connections. Verify with the city or county to ensure that “available” utilities are actually accessible without major added costs.
2. Choose Cost-Effective Materials
Work with your builder to find high-quality materials that fit your budget. Small changes—such as choosing a different door or faucet brand—can result in tens of thousands of dollars in savings.
3. Set Aside a Contingency Fund
We recommend setting aside 10:20% of your total budget to cover unexpected expenses. This ensures you’re prepared for surprises without financial stress.
4. Work with a Trusted Builder
At Vaughan Home Builders, we help our clients manage every step of the building process, ensuring transparency and cost-efficiency. We identify potential hidden costs upfront and provide expert guidance to keep your project within budget.
In Summary
Building a custom home is an exciting but complex process, and hidden costs can quickly add up. From utility connections and engineering fees to high-end finishes and material choices, it’s essential to plan ahead. At Vaughan Home Builders, we help our clients avoid surprises by providing expert guidance and cost-saving solutions.
If you’re considering building a custom home, let Vaughan Home Builders help you simplify the process and prevent unexpected expenses. Contact us today to discuss your project and ensure your dream home stays on budget.
