Additional Costs to Consider

There are additional costs to consider when building a custom home or when choosing a location to build your home. Below are some examples of what to expect. Your particular situation may not require all of these or you may incur other costs that are not mentioned below. These are estimates from previous home building projects – all costs can vary in each situation. The following information is to be used only as a guide and does not represent exact numbers for your home.


The cost to design a full set of plans (floor plan, electrical plan, exterior elevations, roof plan, plot plan and cabinet details) varies from $2.00 to $3.50 per covered square foot.   Covered square foot means all air-conditioned spaces, porches, patios, garages and anything else which has a roof.  Interviews with several architects can be arranged to allow you to meet these professional and select your choice.


Property:  In most circumstances the cost of the property is not included in the cost of a custom home. Also not included are taxes and/or homeowner association dues (if required).

Water Wells:  Water wells cost approximately $10,000 to $30,000.  The associated cost is based on the depth and diameter of the well to produce an adequate volume water.  Depending on the volume and quality of water, a storage tank may also be required.  A typical 4-ring concrete tank costs $7,000 and requires a well house.  Another option would be installing a constant pressure tank with a cost of $9,500.  This option does not require a well house.

Sewage:  Septic tanks (conventional and aerobic systems) cost approximately $6,000 to $13,000.  The type of system is determined on soil conditions and size of the home.

Electricity:  The cost for the local electric company to provide power to the home site varies with each utility company. A realistic estimate can only be provided by the electric provider in your area.

Propane Tank:  An underground 500 gallon propane tank filled with gas is approximately $4,000.

Home Owner Association (HOA) Membership:  Each community has different dues associated with building on your property.  When considering a community, please ask for the specifics payments that will be required.

Fees commonly associated with HOAs include:

  • Typical monthly fee
  • Plan submittal fee
  • Building deposit
  • Building permit


Interim Interest:  If construction will be financed through a lending institution, the owner will be obligated to pay the interest on this loan monthly.  Before construction begins, the interim construction loan will pay off any balance on the property.  Once construction begins, monthly draws will be made from this loan to finance the construction of your home.  Many banks have different approaches to this.   We can suggest lending institutions to speak with, if you are interested.

Deposit:  A deposit of 4% to 8% of the total cost of your home will be required prior to construction. This deposit will be applied to the final construction draw payment.

Permanent Financing:  If you intend to finance a portion of your home, once construction is complete a permanent loan will need to be established. We again can offer suggestions for this if you do not already have a banking relationship.