Two Main Categories Associated with your Custom Infill Home Building Budget
As a future homeowner or investor, understanding the costs of your building project and the anticipated costs it may incur is paramount. As Calgary’s bespoke home builder, Sunset Homes considers the importance of providing information and educating our clients about what the building process entails.
This week we provide you with the components of your construction project budget. In this two-part blog, we will break down the two main categories that your building budget contains to help you understand and get a good sense of what to take into account before deciding to embark on your new custom home or an investment property.
Many factors affect the building cost of a custom home in Calgary. But the two main categories are called Soft Cost and Hard Cost. In this first part, we will be concentrating on what you should expect your home builder to include on the Soft Cost category of your estimate.
The Soft Cost category includes any cost that does not entail the construction process itself, but, the pre-construction and post-construction steps. Soft Cost items tend to be less physically obvious than Hard Cost. Additionally, the soft cost of your infill custom home’s budget might include land costs, administration, legal and accounting fees.
Other items that generate expenses before initiating construction and after finishing it might be taken into account depending on the project; some of the best examples are the architectural design, the engineering fees, your home insurance, building maintenance, and home security. Also, some certifications you might want to include when working with a home builder within the green building initiative is the LEED Certification, and this certification might be included in the soft cost part of your building estimate. On the second part of this blog, we will break down the hard cost category for you, so you have a solid idea next time you discuss your budget with your home builder.
Take a look at the second part of this blog to read all about the hard costs.
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Too Long Didn’t Read (TLDR)
Soft cost relates directly to all the expenses associated with the pre- and post- construction processes, and also with the engineering, design, administrative, legal and accounting fees.