What Costs Are Often Overlooked When Building a Home?
The most commonly overlooked costs when building a home are the land, soil study, the culinary water well (where required), over-excavation if your soil conditions require it, extensive landscaping, and furnishings.
These costs sit outside the vertical build price (price per square foot), which covers materials and the vertical build of the home only. They are simply easy to leave out of an early budget and that is when they become real problems.
Here is what to know before that happens.
THE WELL AND OFFSITE UTILITIES
For parcels without access to a municipal water source, the culinary water well is a requirement. Your lender will require a water source connection to be available to the property. This is one of the first costs to identify and plan for, and it needs to be handled before the construction loan process starts.
Offsite utilities (bringing power, gas, and other services to the property) are another cost that varies significantly depending on how far the parcel is from existing infrastructure. The further the parcel is from services, the more significant this cost becomes.
Neither of these appear in the vertical build price. Both should be identified and budgeted for early in the planning process.
OVER-EXCAVATION
Cedar City and Iron County have a significant amount of expansive soil.
When a parcel requires it, the soil must be removed and replaced with stable fill before the foundation can be built. This is called over-excavation, and the cost varies depending on how expansive the soil is and how large the building footprint is.
Over-excavation is not included in the vertical build price but can be rolled into your construction contract. Some parcels require very little. Others require a significant amount.
A site evaluation before you purchase land is the best way to know what your specific parcel will need. Summit conducts site evaluations and can tell you what to expect before any contract is made.
LANDSCAPING
Summit's vertical build price includes minimal landscaping: finish grading, improved driveway, basic landscaping at the front of the home, one tree and a yard hydrant.
Extended landscaping such as sod, irrigation, multiple trees, shrubs, hardscape, fencing, and outdoor lighting, is a separate cost to plan for. The scope and cost vary significantly by lot size, terrain, and personal preference. What matters most is that it is planned for from the beginning.
Clients who leave landscaping out of the initial budget frequently move into a home surrounded by bare dirt and find that the same work costs significantly more after the fact than it would have during the build.
FURNISHINGS, WINDOW TREATMENTS, AND SOFT COSTS
Furnishings and Window Treatments are consistently left out of initial budgets, often because they feel like a separate decision from the build itself, but they are real costs that belong in the total picture from the beginning.
Summit can incorporate them into your construction contract if requested, making it easier to plan for and finance as part of the complete construction contract.
Whether included in the construction contract or budgeted separately, the cost of furnishing a custom home varies significantly by size and personal taste, and is worth planning for early.
Get Your Questions Answered
In a free 45-minute consultation you will walk away with a realistic budget range, an estimated timeline from planning through move-in, and a clear recommended next step forward.
No obligation. No pressure. Just clarity.
"Hidden costs is a conversation that I have with nearly every first-time client. It's not because they lack knowledge — it's because the visible price is typically just the vertical build price per square foot, while expenses like land, over-excavation, wells, landscaping, and furnishings aren't as obvious upfront. The purpose of that initial consultation is to bring every one of those costs into view before any contract is signed."
— Benjamin Barlow, Owner
Summit Building Construction
25+ Years Building in Southern Utah
PEOPLE ALSO ASK
What hidden costs should I budget for when building a home?
The most commonly overlooked costs when building a home are the land, a soil study, the culinary water well (where required), offsite utilities, over-excavation (if your soil conditions require it), extensive landscaping, and furnishings.
None of these appear in the vertical build price. Summit works through all of them with you at your first consultation so your complete construction contract reflects the full picture.
Does the builder’s price include everything?
Summit's vertical build price is comprehensive, but every project has site-specific costs that vary by parcel and are handled separately.
Summit's vertical build price covers materials, labor, site preparation, concrete, utilities, propane and/or natural gas lines made ready for service, septic (if required), interior and exterior finishes, cabinetry, mechanical systems, permits and inspections, engineered and architectural plans, standard appliances, minimal landscaping, improved driveway, and contingency.
The land, the culinary water well, over-excavation if required, extensive landscaping, and furnishings are not included in the vertical build price but are part of the complete construction contract.
Summit reviews inclusions and exclusions with you at your first consultation.
How much should I budget for landscaping a new home?
Landscaping costs vary significantly by lot size, terrain, and personal preference. Summit's vertical build price includes minimal landscaping — finish grading, improved driveway, basic landscaping at the front of the home, one tree and a yard hydrant. If you want more personalized and extensive landscaping, Summit can include it in your construction contract.
What matters most is that landscaping is planned for from the beginning. The same work often costs significantly more after move-in than it does during the build.
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