How to Set the Right Budget for Your Custom Home

2021 August 10

It’s no secret that building a new custom home can be expensive. If you’re not careful, you could definitely end up going over budget, as there are plenty of expenses that can creep up on you.

It may seem overwhelming, but getting your budget just right is a crucial step towards building the home of your dreams. 

However, once you have it set, everything will fall into place and you’ll be on the path towards move-in.

We’ll help you figure it all out. Here’s a quick guide on how to set the right budget for your custom home. 

First Things First: Cost of Land

The first thing you will be investing your money into is the land on which you will build your home. When buying a parcel of land, there are many factors that have to be taken into consideration. These include: 

Location: The location of your plot can affect the price for a lot of different reasons. These could include your proximity to schools, businesses, parks, natural resources, airports, other cities, etc. Be aware that these factors can really add up and make a big difference in the cost between properties. 

Utilities: Some pieces of land don’t have utilities already set up, which means that you will be spending some of your time and budget making sure that your gas, electricity, water, and internet are available and ready to be connected before you start building your home. 

The last thing you want is to go through the whole building process, just to find out you can’t get the speed of the internet you desire in the location you picked. 

Zoning: Sometimes, you might fall in love with a specific location, and then zoning ordinances will prevent you from building everything you had in mind. In scenarios like these, there is a chance that you will have to pay specific fees or get special permissions to be able to build the home of your dreams. 

So, be sure to research these things ahead of time. Just like with setting up utilities, you want to make sure these processes are set in stone and figured out before you break ground or purchase your land. 

Preparation: Land preparation is also a very important factor. The amount of work your project requires will ultimately affect the price. Some pieces of land might already be leveled out, others might require you to test out the soil and make sure that everything is ready for construction. 

Once again, planning ahead will save you lots of potential pain down the road. For more information, check out our blog about What to Consider When Buying Land.

Permits and Inspection Fees

Inspection fees and permits are necessary for the legal proceedings of developing your new home. They give you permission from the city to start your construction and allow you to move in once it’s finished. To make sure you’re not caught off guard by their costs, you should take some things into consideration. 

The price of building permits varies according to the size of your potential building, land plot, and scope of work. Bigger and newer buildings with large scopes of work that are located on large plots of land will cost the most. According to, the average homeowner in the U.S. pays between $450 and $600 for a building permit, usually around $550. 

Though they’re a small addition, planning permits can add to this cost. cites that these cost around $30. However, they’re not required everywhere; cities and states have their own rules about them. 

Planning permits, like building permits, are the city’s way of giving you permission to use the land you’re purchasing to build your home. In cities and states where they’re required, planning permits keep track of what you’re going to do with the land and must be filed before you start officially planning your work.

Once your construction is finished, you may be required to hire a building inspector to appraise your home and make sure it’s up to standard. According to, this usually costs between $200 and $500, with just over $300 being the average for most homeowners.

Design/Build Cost

Design costs can vary with the size of your home and the materials used for construction. For example, if you want more rooms, you’ll end up paying for more paint, flooring, drywall, furniture, labor, and other things. 

Other big investments in home construction projects are the appliances that you will be installing. Having an idea of what kind of appliances you want will help your builder know how to better optimize the layout of your custom home, and will give you a more accurate budget. 

These factors should be taken into consideration well before your custom home project is kicked off. Every time you change your final touches, your builder has to switch up their planning, which can result in delays and extra fees that you will have to pay. 

Eagle Creek Homes Can Help 

Building your dream custom home requires a lot of planning, and finding the right partner to guide you through the whole process can make it a lot easier. 

At Eagle Creek Homes, we understand how important your custom home building project is for you and your family. We also know how complicated it is. 

That is why we pride ourselves on being a true partner. We will work hand-in-hand with you, guiding you through our excellent, transparent custom home building process.

When you work with Eagle Creek Homes, you will never be out of the loop. Your project manager will give you updates every step of the way so you’ll know exactly what to expect during every stage of the process. You’ll see photo and video updates on the status of your home, and will get calendar reminders for every important meeting. 

If you are ready to start bringing your dream home to life and want to learn more about our process and customization options, contact Eagle Creek Homes today!

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