Land and due diligence
Purchase price and closing costs are separate from the building. Include the surveys, soil work, professional reviews, and other investigation needed for your decision.
The Farris planning library
What does a custom home really cost?
The house is one part of the budget. A useful plan brings the land, site, construction, decisions, and ownership costs into the same picture.
A square-foot number
cannot carry the whole budget.
Two homes with the same living area can have very different costs. Covered porches, garages, roof geometry, structural spans, finish selections, and the land beneath them all matter.
Ask what area a price uses, what is included, what remains an allowance, and what is excluded. A useful estimate is traceable to a defined scope.
Build the budget in layers.
Homesite and infrastructure
Clearing, access, excavation, foundations affected by site conditions, drainage, utilities, and septic or sewer connections can materially change the plan. Define where these items sit in the estimate to avoid counting them twice or omitting them.
The home and Contractor’s Fee
Under a cost-plus agreement, actual costs of the work and the agreed Contractor’s Fee determine the price. The estimate is a planning tool, not a fixed price or guaranteed maximum. Review the fee calculation in your agreement.
Selections and allowances
An allowance holds a place for an item that is not fully selected or priced. Actual differences and the applicable fee provisions are reconciled under the agreement. It does not guarantee a particular product, availability, or final installed cost.
Professional, financing, and timing costs
Design, engineering, permits, lender costs, insurance, temporary housing, and schedule-related expenses may fall in different parts of the project. Identify who carries each item and when payment is due.
Contingency and life after move-in
Keep an appropriate reserve for uncertainty rather than assigning every dollar to finishes. Then consider recurring utilities, insurance, taxes, maintenance, and the work needed to keep the home performing.
Make tradeoffs early.
First protect the things that are difficult to change later: site placement, useful layout, structure, and water management. Discuss whether extra area or complexity is earning its place before drawing a larger home and downsizing it late.
Make the plan work harderBring enough to begin.
Your location, project stage, broad budget, and three priorities are enough for a first conversation. A reliable price takes a defined scope, site information, selections, and current trade input.
Bring the scope and budget togetherCost questions, plainly answered.
Can you build within $400,000–$950,000?
That is a preferred conversation range, with flexibility for the right smaller scope. It is not an all-in price promise. We need to distinguish the construction budget from land, site work, fees, and other costs, then review the complete project and applicable licensing limits.
Is cost-plus the same as a fixed bid?
No. Cost-plus combines actual project costs with the fee described in the contract. Estimated totals can change as scope, conditions, pricing, and selections develop.
Does unused allowance money come back to me?
Actual costs are reconciled against allowances under the agreement. Under-budget items receive the applicable credit, subject to the contract’s fee and minimum-fee provisions; over-budget items add the actual difference and applicable fee.
Does the design credit reduce my first design invoice?
No. The full design fee is payable under the design agreement’s milestones. Eligible credits apply later toward the Contractor’s Fee when the qualifying construction agreement is signed. The separate preconstruction retainer has its own credit terms.
An invitation to begin
Bring us the question you are working through.
A location, a few priorities, and where you are in the process. We can start there.