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All You Need to Know About The Custom Home Building Budget: The Soft Cost

 When thinking about building their dream home, homeowners usually have one main initial concern: Budget. Homeowners wonder what should be included in their quotes and how to keep their budgets on track. And this concern is understandable as your budget is an essential component of your project planning and will define its extent and particularities. As experienced Edmonton custom home builders, we are very emphatic about the importance of adequately anticipating and understanding the costs of your custom home building project since the beginning.

If you are considering to build the perfect new home in Edmonton but are unsure about the intricacies of a proper building estimate, today’s entry is for you! We have prepared a two-part blog where we show you the two main categories of any building budget: The soft cost and the hard cost. These are two concepts that every homeowner needs to understand before deciding to embark on a new custom home or an investment property.

The Soft Costs as Part of Your Construction Budget

In this first part, we will begin by explaining the concept of soft cost. The soft cost category includes any cost that is not entailed by the construction process itself. This means, the pre-construction and post-construction steps. If you are considering to start the building process of your dream luxury custom home, first you must find the perfect builder in Edmonton for you. Once you have selected your builder, you will have the help you need to have a realistic building budget.

When meeting with your Edmonton custom home builder, you should discuss every detail of the project you have in mind and your overall expectations. At this point, your builder can prepare a proposal and estimate for you that will start by including the soft cost. Pre-construction soft costs are usually generated by land costs, architectural, engineering, administration, legal, and accounting fees. And let’s not forget about the processing of all the permits you need to build on the land you bought, and the costs generated by construction and custom home design drawings.

As we mentioned before, the soft costs are not only generated during the pre-construction stage. Some of them arise after the building process itself. Some examples are building maintenance, and your dream home insurance and security. And if you are interested in getting a green certification for your new home in Edmonton, then you must ask your Edmonton custom home builder to also include those expenses in your soft costs estimate.

As professional Edmonton custom home builders, we have noticed that soft costs items tend to be less evident than hard costs items because they are not related to physical labor or building materials. But the fact that they are often not visible doesn't mean they must be neglected. Make sure your chosen builder in Edmonton can foresee the soft costs of your project and suitably includes them in your budget.

Don't miss the second part of this blog, where we will focus on the latter main category of your building budget: The hard cost.

Ready to build your dream home in Edmonton? Contact Edmonton Custom Home Builders today!

We will prepare a summary budget for your new custom home and provide you with more information about our custom homes in Edmonton and the Fort Saskatchewan area!

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Too Long Didn’t Read (TLDR)

Any good custom home building budget entails two main categories: The soft cost and the hard cost. The soft cost includes any cost that is not part of the construction process itself and is generated during the pre-construction and post-construction stages.