The Top 10 Hidden Costs When Building a Custom Home in Mid-Missouri
The Costs of a Custom Home Every Homeowner in Ashland, MO Should Prepare For
While building a custom home can feel like a dream for mid-Missouri homeowners, it’s highly important to remain practical. Like many things, nothing comes free, and new construction homes are no exception. Before relishing too much at the idea of building a custom home, we as builders recommend closely evaluating your budget and considering the extra costs you could face.
#1: Buying the land for your new construction home in central Missouri
Before you start paying for a new home, you need to buy some land first. Whether you’re purchasing a plot of land through your builder or by yourself, this is an essential step towards the total cost of your future custom home. You can either buy the land upfront or apply for a land loan in the Ashland, MO area. Once you have land, it’s time to start budgeting for your new construction home!
#2: Property taxes on your mid-Missouri custom home
Because custom homes in central Missouri are made brand new with updated building practices, the property taxes are likely to be higher than that of an existing home. Property taxes are determined by your home’s value, as well as the value of your land. In the state of Missouri, the average property tax rate is 0.88%, so be prepared for these future payments on your custom home. You will have a better understanding of your property tax rate upon completion of the house.
#3: Prepare your budget for builder fees on the custom home in central Missouri
Builder fees are another significant factor in budgeting for your new mid-Missouri home. These fees encompass various aspects of custom home construction, including labor, materials, permits, and project management. For a smooth and successful home-building experience, it's essential to consult with our experienced builders and contractors in Ashland, MO when crafting your budget. By doing so, you can navigate the financial aspects of your custom home project with confidence, ultimately bringing your vision to life in central Missouri.
#4: Adding extra features to your custom home in Ashland, MO will increase the cost
Want a home office in your new house? Adding an island to your custom kitchen in central Missouri? The allure of a custom home is the opportunity to customize it however you’d like! However, this will make a difference in the cost of your new construction home. Our contractors are happy to add unique features to your custom home in mid-Missouri using precision and high quality materials, but be aware that the price will increase to account for the extra labor.
#5: Consider moving costs before building a custom home in mid-Missouri
If you’re moving to a new neighborhood in the central Missouri area, moving costs are another factor in your budget. Hiring a moving company will reduce the stress of moving all your belongings on your own, but it will cost you a few hundred dollars. Keep in mind that the time of year you move can affect the pricing of a moving company, such as the winter time when moving costs are lower.
#6: Set aside a budget for your custom home’s landscaping in the central Missouri area
Now that you own the land, you may consider building on the exterior of your custom home’s property. While this may be an expense later down the road, it’s equally important to be aware of. When buying the land, you will need money set aside for excavation, leveling, and other land preparation procedures. Landscaping is a long-term investment, whether it’s establishing a garden or installing a patio space, but it is a beautiful touch to your custom home’s curb appeal in Ashland, MO.
#7: Upgrades in materials will affect the cost to build a mid-Missouri house
Exploring upgrades in materials for your new mid-Missouri house can significantly impact the overall cost of your construction. From hardwood flooring to energy-efficient windows, the materials you choose can enhance both the aesthetics and functionality of your home. This will, however, also be an expense to prepare for. Watts Construction uses modern materials and incorporates the latest technology for custom homes in the Ashland, MO area, and we are willing to take the extra time on making a durable, timeless home for you and your family.
#8: The closing costs of a custom built home in the Ashland, MO region
Closing costs such as home inspections, appraisal, and lender charges should also be considered in your custom home budget. Make sure to communicate with your lender and the builders at Watts Construction about closing costs in mid-Missouri. This factor varies from homeowner to homeowner, but you can typically expect closing costs to range from two to five percent of the new home’s price.
#9: Make sure you can afford homeowner’s insurance for a new construction home in mid-Missouri
The expenses don’t just end at the finish of construction. If this is your first time owning a home, insurance will be a large portion of your future payments. Homeowner’s insurance will cover you if accidents occur and cause damage to the house. So, as you plan your budget for your custom home in central Missouri, don't forget to account for the vital role that homeowner's insurance plays in ensuring your long-term security and financial stability.
#10: Buying furniture for your custom home in central Missouri
Lastly, decorating your new custom home will cost money. Unless you already have furniture from your previous home or apartment, you’ll need to finance household items such as couches, desks, mattresses, and more. This is a great opportunity to personalize your custom home and explore your preferences of interior design. Be sure to take advantage of yard sales, Facebook listings, and retail sales in the area!
Watts Construction Will Give You the Cost Breakdown of Building a House in Ashland, MO & Work With Your Budget. Learn More & Call Today!
At Watts Construction, transparency matters. You have a right to know all the costs that come with building a custom home in central Missouri. Our home builders will help you reach your goals within your budget, and we will make sure you’re happy with the final product. To learn more about custom home expenses in Ashland, MO, contact us today!
