So, you’ve started the process of buying your dream house, and you’ve secured the funds for your minimum deposit. Now, as you go through the home building process or the process of getting your home ready to move in, you might encounter some overhead costs before moving in. These costs might not have been mentioned or noticed before making the deal and might significantly increase the final price you pay for your new home. Hidden costs are a big reason for potential buyers to back out from their purchase. To make sure you don’t go way over budget, we have prepared a list of hidden costs that you must check with your builder before you accept any purchase deal and put down your deposit.
Hidden Costs that need to be checked
The land your house is situated upon matters a lot when it comes to overhead costs. If you have a flat piece of land, you are extremely lucky and will face little to no overhead costs for repairs. However, if the soil quality is subpar and the land is not flat, you are looking at anywhere between $ 8000 to $ 80,000 inland and site repairs. Inclined land can be incredibly expensive to repair, so be sure to confirm the site costs and status with your builder before you finalize any deal.
You must also confirm about other costs such as ceiling repairs, room repairs, or washroom repairs. Before you finalize a deal, make sure you know what you are paying for. If there is repair work that needs to be done to the site, you will have to bear those costs.
Prior to building a home according to your builder’s provided plan, you will need to verify the costs of the structures which will be built. It is recommended to get a quotation only after a round of engineer drawings. With that done, you can get a real idea of the costs that you are going to incur. The builder’s estimates are usually correct for all materials. But for creatively designed houses, the cost of the metals can go significantly higher than the builder’s estimates. It is best to get a set of engineer designs to accurately calculate the structural costs prior to finalising a deal.
When you are making a quote on a house, the flooring of the house may need to be done separately. Only the concrete base will be included in your house’s quotation. Make sure you confirm the inclusions of the flooring with your builder. Before you strike a deal, you can ask your builder to complete the flooring using a material of your preference.
If a piece of land is attached to your new home, it is referred to as a home and land package. Usually, builders quote the price only of the house and not the piece of land. You must confirm with your builder if the finishing of the landscape and the fencing costs are accounted for in the quoted price of the house.
The cost of fencing is usually shared with the neighbor in a half-half basis. However, what many builders do is that they charge the price of fencing to the person buying the house, which makes the homebuyer spend double of the actual cost on the fencing of the house. Make sure you are clear with your builder regarding this and you only pay your share for the landscape and fencing work.
Home Owners Insurance (H.O.W.)
Cincinnati Tri-State properties valued above $ 3000 must come with homeowners warranty insurance. The builder must pay a premium to the construction commission of that state and insure the concerned property, unless it's renovations only. Usually, this is included with the quotation of the house, but it is still recommended to confirm whether this will be provided for the quoted price of the property.
Road Closing Charges
If the construction process of your home demands the builder to close the road connecting to your land, then a fee might be charged to your builder. This fee is charged by local authorities or the government and must be paid by the builder. Make sure this cost is mentioned when getting a quote from your builder. Be sure to confirm whether it will be covered or not before the construction of your property begins.
Alzaria Construction – The Construction Company you can trust!
When getting a quotation on your dream home, you deserve to have all the transparency regarding the costs and the building process. The six hidden costs we mentioned must be checked by your end so that the builder does not charge you on top of the quoted price of the property. It can be really difficult to trust a builder, especially if you’re going to work with a builder who has relatively less experience in this field. Make sure you choose a builder who has several customers who can vouch for the quality of their services. After all, you do not want o make compromises on choosing the right construction company to renovate the home of your dreams.
We are Alzaria Construction, one of the leading custom home renovator's in the Cincinnati Tri-State area. We wish to serve you as well. Do not hesitate to reach out if you want to get started on your dream home project. You construct a dream, we construct it in to reality. Our quotes are transparent, our prices are fair and our customers can vouch for each claim we make.