(Newswire.net — June 4, 2018) — Building a house is an expensive affair; that much we all know. However, not many people understand just what that means. This is why many people who are building a home for the first time end up grossly underestimating the cost of the project. There are many costs involved in building a house. The obvious ones include the cost of materials and the cost of hiring an architect and a building contractor. However, building a house involves many more expenses than just these. This article highlights both the obvious and hidden costs involved in building a house.
- Permit fees
You might have to get a building permit, an electrical permit, a sewer permit, among other types of permits. These can cost a lot and many people do not account for these fees when they are budgeting for their building projects.
- Utility fees
You will need to pay the utility companies to connect things like electricity, water and gas to your home. You will also need to pay for your house to be connected to the local sewer system.
- Lot preparation fees
There is a lot that needs to be done before a building can be erected on a lot. If there are trees, they will need to be cleared. The land will have to be graded if it is sloping. The greater the slope, the more expensive it is going to be. You will also need to have the soil tested. If your lot has rocky soil or soil that makes it difficult to build, the project is going to cost you more.
- Floor plans
Whether you purchase them online or you get your architect to draw them up for you, you will have to pay for them.
- Materials
This will be included in the price quote you get from your building contractor as he will be the one to source for materials on your behalf. In order for the quoted house builder prices to be more accurate, it should specify the materials you are going to use for each phase of the project. You can only estimate the number of materials that will be needed but if you are working with an experienced building contractor, they can come up with a very accurate estimate and therefore, the actual amount used will not be very different from the estimate.
- Labor
This will also be included in the price quote since the building contractor is the one who will hire construction workers and pay them on your behalf.
- Other hidden costs
You might have to spend more in order to ensure your building is in compliance with local regulations such as BASIX if you are building your house in Australia. Other costs that you will have to incur and which might be excluded from the price quote include landscaping, paving driveways, and flooring. You might also have to pay a lender’s mortgage insurance to your financier. This may be required up front or may be included in the regular payments you will be making to your financier.