When you’re planning to build a home, you need to consider all the costs involved. Some of these factors can make the cost of your house build go way beyond what you expected. Don’t let these costs surprise you when building a house. Here are just a few of the hidden fees that can make the price of your house build add up!
1. Cost of Materials
When buying construction supplies for your new home, you may find yourself paying more than you expected. This scenario usually happens when you don’t shop around first and buy materials from a retailer that doesn’t offer discounts.
2. Labor Costs
Labor costs vary depending on where you live. Some areas require higher wages than others. For example, labor costs are typically cheaper in rural areas than urban ones.
3. Land
Land prices are often based on location. Generally speaking, the closer you are to a city center, the higher your land price.
4. Insurance
Insurance rates depend on the type of property you own. For example, a single-family home will cost less than a multi-unit apartment complex.
5. Permitting
On average, permits can account for 10-15% of your construction fees for homes in Idaho.
6. Taxes
Taxes vary significantly from state to state. Tax laws change frequently, so it’s always wise to consult a tax professional about what your taxes will be.
7. Closing Costs
Closing costs include legal fees, title insurance, and other items. They can add up quickly.
8. Financing
Financing options differ from lender to lender. It’s important to understand the terms and conditions of any loan you apply for.
9. Mortgage Interest
Mortgage interest depends on several factors, such as your credit history, down payment amount, and loan term.
10. Moving Costs
Whether you are renting another house, hiring movers, or renting a storage unit, all of these costs can definitely add up.
Don’t Get Surprised by Hidden Building Costs
Seems like a lot of details, right? Thankfully, you don’t have to keep track of these costs alone.
I’ve had many years of experience in construction well before I started in real estate. I know the details that can make all the difference in a house build, and I want to help you make your dream home a reality.
Contact me to learn more, or call me at (208) 401-4066!
