What Costs Are Not Included in a Builder's Quote?
The line items that live outside the build contract and still have to come out of your budget.
The build contract covers the house. Your project budget has to cover more than the house. None of these are hidden charges. They're just outside the scope of a construction contract, and the people who get surprised are the people who assumed otherwise.
Land and site
- The lot purchase, and closing costs on it
- Survey and staking
- Excavation, grading and drainage beyond what's specified
- Driveway, especially a long one
- Utility connections and service runs. See utilities
- Well and septic, where applicable. See well and septic
- Tree removal and site clearing
Soft costs
- Permits and plan review fees
- Soil evaluation, engineering, and any required studies
- Loan origination, appraisal, title and closing costs
- Construction period interest on drawn funds. See draws
- Builder's risk or course-of-construction insurance
See soft costs explained.
Finishing the outside
- Landscaping, sod, seeding and irrigation
- Decks, patios, walkways beyond what's specified
- Fencing, sheds and outbuildings
- Mailbox, address post, exterior storage
Finishing the inside
- Window treatments, which are a bigger number than most people expect on a house full of new windows
- Closet organization systems
- Basement finish, if deferred. See finishing later
- Appliances beyond the specified package
- Furniture for rooms you didn't have before
Living costs during the build
- Your current housing while building
- Storage and moving
- Overlap between rent or an existing mortgage and construction loan interest
After move-in
Property taxes on a completed home rather than a vacant lot. See when your taxes change.