Finishing Finances: Have You Covered all the Costs of Building Your Own Home?
Tuesday, July 26, 2016, 6:00 AM | Leave Comment
Building your own home can be one of the most fulfilling projects you ever take on. However, if you underestimate your costs, it can quickly become a nightmare.
Here are some of the less obvious expenses that general contractors know about, but your home package provider might not.
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Permits and Approvals
Before the home package is even delivered, there are fees and expenses for things you may never have even heard of.
You will have to pay to have your plan drawn or adapted to align with local codes and regulations and will have to pay to have the plan approved.
You might even be responsible for various building permits or temporary electrical hookups.
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Tap-Ins
New utility tap-in fees vary from location to location but are typically pretty hefty.
You will have to pay for the excavation and installation required to bring utilities from the connection to the actual spot where your home will be.
You may have to pay for electrical poles, meters, and other equipment as well.
You will have to pay for sewer connections or a septic system and depending on which side of the street the water and sewer lines are located, you may even have to pay to dig up the road, lay pipes, and then replace the road.
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Excavation
Even if your lot is perfectly level, you will have to have excavation done before you can build.
Foundations or basements must be dug out and drains, sump pumps, and sewage lift stations may have to be installed.
Even if you choose a slab, the area must be excavated beforehand. Driveways must be dug out, and drainage systems and culverts will be needed if your driveway will cross a county-mandated ditch or gutter.
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Weatherproofing
Most areas have special code requirements based on local weather hazards.
These range from special framing and foundation techniques in tornado-prone areas to professional waterproofing and drainage systems for basements or crawlspaces.
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Driveway and Sidewalks
Many local codes require asphalt or even concrete driveways and entry paths that meet certain specifications. Some also require that you install a sidewalk or repair an existing one along the road frontage of your property.
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Community Requirements
Even if you don’t want any brick or stone on your home’s exterior, you may be required to have a certain amount of it anyway.
Your new community may have other specifications too, such as minimum requirements for square footage for new construction or specific materials and sizes for a new front door or windows.
Luckily, you can usually find deals at places like Fas Windows and Doors. You may also have to pay homeowners’ association fees, road maintenance costs, or other community-specific fees and assessments so be aware of these as well.
Most construction loans cannot be modified after they are approved. Therefore, it is vitally important that prospective builders know about and plan for every possible cost.
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