The process of buying a new home can be frustrating. After looking at dozens of listings, and visiting open houses after open house, you might want to give up your search and move on. The homes that are out there don’t match your personality, or price or have all the things on your checklist. Maybe it is time to consider building a home. You can get every feature in the house that you are looking for. What are some hidden costs of building a house?

Land Costs

As with any real estate, it isn’t always about the cost of the materials. It’s about where the land is located. What are some things you might not know about with the land expenses?

Lot Improvements – When you buy a piece of land from a developer, you might assume that the land is set up for immediate building. However, some land doesn’t come with the right hook-ups for plumbing, sewer, or electrical. If you thought those were part of the contract and they aren’t you will have a lot of added expense to your home build.

Soil Conditions – Most people don’t consider the soil that your home is built upon. Depending on the type of soil that your house is being built on, the weight might be too much for your home. Make sure that your home can hold up structurally by getting it tested or talking to your contractor to do so. If you do so and make the proper changes, it will cost a little now but could save you a lot more down the line.

Site Plan – A home is a huge decision and if you decide that the location isn’t right for you, you can still make a change to a different area. By moving locations, you are adding costs to the build. Make sure if you decide to change you are sure it is a much better location.

City Costs

No matter where you live, the local government assess a tax on the land where you build. Here are some fees you should expect.

Impact Fees – Because you are building a house in a place where the government could build, they charger you for the amount of space your home takes up. The fees go towards other land projects like parks, roads and public services that will make your area better.

Permits – Permits are an essential part of the building process. These control how you build and give the county you live in, the information to tax you correctly, and know the general safety of the house. Whenever you build a new room or other major undertakings in your home, it is required to get permits. If you don’t there can be a lot of fines assessed or could affect the cost of your home when you go to sell it.

Code Infractions – If you don’t know the building codes for your area, make sure to get to know them. If you break a code, the county can assess a considerable fine.


Getting a new home, customized to your specifications can be amazing. Make sure you are aware all the hidden costs to make sure that building a house is right for you.