Unexpected Costs When Building a New Home

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unexpected home building costs

Building a new home is exciting, as long as you don’t get blindsided by costs that were not on your original quote. Most buyers expect to pay the base price, upgrade costs, and the usual closing expenses. However, some unsuspecting buyers have found themselves hit with hidden charges, timing issues, and other factors that have pushed the final cost far north of the original estimate.

The good news is that with the right home builder, it does not have to be that way. These costs are avoidable, as long as you know what to look for upfront. 

Here’s a breakdown of common unexpected costs that can sneak into the home building process – and how you can avoid them.

Lot Preparation and Site Work

If you’re not working with Charleston Homes, it’s important to read your contract very carefully to ensure it includes the cost of making the site build-ready. If it does not, it can add thousands to your final bill.

This work includes:

  • Grading and levelling the land
  • Soil testing and excavation
  • Utility hookups (water, sewer, electric)
  • Tree removal
  • Debris clearance
  • Preparation of driveways and walkways

Of course, the amount of preparatory work needed depends on the size and condition of the plot. If your builder does not handle this in-house or quote for it upfront, you may find yourself writing checks to multiple contractors before construction even begins.

When you work with a top-tier builder like Charleston Homes in Omaha, the lot and all the site work are included in your transparent bill right from the beginning.

Permit Fees and Impact Costs

Before your builder starts any work, they must obtain the necessary permits from your local city. For example, if you live in Omaha, you would need permits from the City of Omaha Planning Department. 

Other fees may include:

  • Sewer and water connection fees
  • HOA initiation costs
  • Impact fees for new developments

Municipalities can charge impact fees to defray the cost of infrastructure improvements necessitated by new developments. They may not be payable in every case, but be sure to ask your builder whether they, and other mandatory fees, are included in the quoted cost of your new home construction.

Of course, when you choose Charleston, all of this is done for you and included in the total price.

Customizations and Upgrades

When touring model homes, it’s important to understand that they often have upgrades baked into them. If you want to achieve the same high-end finish in your home, ask your builder about what comes as standard and what costs extra.

The kitchen is a particular area to watch out for. Few of us can resist upgrades to the heart of the home, such as luxury countertops, bespoke cabinetry, and top-quality appliances. However, other upgrade costs could sneak up on you, including:

  • Flooring upgrades
  • Tiled shower surrounds
  • Extra windows
  • Smart home features

A reputable Omaha builder will want you to understand the cost of all these upgrades before you sign anything. 

At Charleston Homes, you will meet with a Sales Agent to discuss your choices and their costs. We want you to understand exactly what’s included in the base price and how much optional extras will cost right from the beginning, so there are no surprises later on.

Expensive Change Orders

During the construction process, some buyers decide they want to make additional changes. These are called change orders and can include requests such as different tile in the bathroom, different flooring, or a larger patio.

These changes may sound simple, but they can have a huge impact on the cost. Change orders almost always cost more than making the same choice during the planning stage. Materials are not the only consideration. Labor, delays, and do-overs all add to the final bill.

The best way to avoid extra costs is to stick to the original plan. This is why our home-building process at Charleston Homes includes several discussions to ensure you are happy with your choices before you sign the contract and construction begins. 

Landscaping and Outdoor Finishes

The mental picture you have of your new home probably includes landscaping—just make sure your contract does as well. Basic landscaping, such as grading for drainage and laying sod, may be included. 

However, additional costs could include:

  • Fencing
  • Patios and decks
  • Exterior lighting
  • Irrigation systems

If these costs aren’t in your contract, you’ll have to pay them out-of-pocket when you move in, which could add thousands to your bottom line.

Delays and Rate Locks

Sometimes construction depends on matters outside its control – weather, materials, and even labor shortages. If your construction loan is locked in for a limited time and your build overruns, you may have to pay fees to extend your loan. 

Delays can also mean additional costs for temporary housing or storage if your current lease or house sale does not align with your new move-in date.

Charleston Homes mitigates this by giving buyers a 3-week move-in window the day they sign their contract. Then, 60 days out, buyers receive a confirmed closing date. This kind of scheduling clarity is rare and can help buyers avoid extra expenses.

Choose Transparency With Charleston Homes

At Charleston Homes, customer satisfaction is our guiding principle. We do not want any of our customers to be hit with unexpected costs on closing day. Our policy of transparency from the moment you begin discussions until we hand over the keys means you know exactly where you stand, every step of the way.

Start your journey to a new, personalized Omaha home by requesting a quote today!