When you start exploring questions like: 'How much does it cost to build a custom home?' You might encounter something known as 'hidden costs.' If you know next to nothing about the hidden costs of building a custom home, many expenses could take you by surprise and put a wrench in your construction plans.
That's why it's best to educate yourself on the hidden cost of new home construction before you break ground or even begin the design phase. To help you be as prepared as possible, our team at Dusty Rhodes Homes has shared what you need to know about the hidden cost of building a home in Kansas City in this custom home pricing guide.
What Are the Unexpected Costs When Building a Custom Home?
We care about transparency at Dusty Rhodes Homes and want you to know how our team determines the average cost to build a house. So, we hope the below discussion on hidden costs helps inform your future custom home budget planning goals:
1. Site Preparation and Land Development
Unless work has been done on the site beforehand, it's highly unlikely that your site preparation and land development will cost you anything. We often tell our clients that before construction can begin, the land needs to be prepared, and this usually involves soil testing, grading, clearing trees, and excavation.
Unfortunately, these things cost money, and if you don't realize this, it might put an obstacle in your way early on. However, these tasks are essential, and the costs are unavoidable. Depending on the amount of work required, you should expect to pay between $8,000 and $25,000 in the Kansas City area for site prep.
2. Permits and Regulatory Fees
There is no workaround when it comes to permitting. If you don't get the necessary permits for your home construction in Kansas City, you could encounter serious problems like fines and a tough sale down the line. That's why it's best to learn about permits and regulatory fees before building your custom home.
In most instances, if you work with a design-build firm like Dusty Rhodes Homes, they will tell you how to budget for a custom home and detail what you should expect to pay for permitting and regulatory fees.
However, as an estimation, we can say that these fees run anywhere from $3,000 to $8,500 on average, but this can and often will vary depending on your municipality and square footage. You also might have to pay more if you have special requirements like fire sprinklers and stormwater plans.
3. Utility Connections
Hidden custom home costs you might not budget for often include utility connections. Connecting your home to city water, sewer, gas, and electricity isn't always a quick plug-and-play. If the land is raw or rural, trenching and meter installation and septic or well systems may be needed.
With this in mind, you should expect to spend $10,000 to $30,000 in Kansas City for full utility access, depending on distance and service availability. When we design your home, we can help you narrow down the cost so you're aware from the start.
4. Change Orders During Construction
We get it. Sometimes, what you envision for your home doesn't quite meet your needs, and this is okay, but it can lead to issues, especially if construction is already underway when you've had a change of heart.
If you change your mind after framing or rough-ins, expect adjustments to cost and timeline. For some, this can be a hidden expense if they are unaware of this when signing a contractor with a builder. In our experience, minor changes could cost a few hundred or thousand dollars, while more substantial alterations often cost between $5,000 and $15,000 or more.
5. Landscaping and Exterior Features
Landscaping and exterior features can be part of the hidden costs of building a house. It's easy to forget how much goes into the exterior until the front yard is still bare dirt at move-in. Driveways, sod, irrigation systems, fencing, and outdoor lighting all fall outside the basic build, and many are left surprised by this.
In Kansas City, landscaping and exterior features can add $15,000 to $50,000 or more, particularly if you plan hardscaping, retaining walls, or an outdoor kitchen. But don't worry – when you work with us, you can work exterior features and landscaping into your build from the start.
6. Temporary Living Arrangements
If you're building a custom home in Kansas City, you must realize that you might need to make temporary living arrangements. If your current home sells before your new one is complete – or if you're building on a teardown lot – you may need to rent temporarily.
Rental and storage costs add up quickly, especially with families or pets. We recommend you budget $1,500 to $3,000 monthly for short-term housing in the Kansas City area, plus moving and storage if needed.
What's the Best Way to Avoid Surprise Costs in a Custom Home Project?
The best way to prevent surprise costs during a custom home build is to start with a solid plan and a clear budget. Take the time to map out every part of the project with your builder, and make sure your budget includes a little wiggle room for the unexpected.
You'll also want to stay in touch with your builder throughout the process. We can't explain enough how regular check-ins and honest conversations go a long way in avoiding delays or extra costs.
It also helps to be thoughtful about your wish list. You should focus first on the features that matter most for your lifestyle and save the splurges for where they'll have the most significant impact.
Additionally, you need to make sure you know exactly what's included in your builder's contract and don't be shy about asking questions if something isn't clear. And lastly, stay involved. Visit the site, check in on progress, and keep an eye on spending so you always feel in control and confident about your decisions.
Dusty Rhodes Homes Can Help You Navigate Hidden Costs with Our Upfront Process
We hope that this blog has helped you learn more about hidden custom home construction costs. If you're ready to work with custom home builders in Kansas City, you can contact Dusty Rhodes Homes here today. Our team is happy to help you learn more about the costs of a custom build.
