Check out our video or read up below for what you need to know about the cost of building a custom home in Calgary!
The cost of building a custom home is usually the first question our clients ask us, and as it turns out, one of the hardest to answer. Build costs are unique to every home and understanding them can help you get the most out of your money. To simplify, we like to break them down into three categories: land costs, soft costs, and hard costs.
Land costs are the most straightforward of the costs but should not be overlooked. The lot you choose can affect what you're able to build, the size of your home, and even the construction price. When purchasing make sure to think about zoning restrictions and aesthetic requirements. Abiding by these will help you save time and money during the permitting process. We also suggest you consider how your home will be built on the lot you are buying. If it looks hard to build on, it probably is. In most cases flat lots on large new streets are going to be the cheapest to build on. Hills, tight access, and utility upgrades are all factors that can cause major upticks in price down the road!
Soft costs are often overlooked and can add up quickly. Things like construction insurance, finance appraisals, and permit costs are often missed when planning a custom home. These costs will generally make up 10-20% of your overall project cost so it is important to understand them before getting into a project. Send us an email and we would be happy to share a checklist!
Hard costs come from the actual construction of a new home! This stage is often the most exciting but also the most stressful for clients. It is where the risk is highest for cost overruns to occur. Time delays, last minute changes, and unclear scopes are both frustrating and costly. Detailed planning and budgeting is the best way to mitigate these risks. Work with your builder and designer to have contracts, drawings, finish selections, and permits all in place before breaking ground. We also suggest making a list of items you need versus items you want in your home. Knowing this will help you make tough budget decisions if the build costs are looking too high.
It's important to keep in mind that this is a high level overview of the costs associated with building a custom home. Builder Online has a great graphic with some more details which you can find here. For an overview of how to get started on your custom home with Innova, check out our blog post on the custom home building process!