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How to Budget for a Custom Home

How to Budget for a Custom Home

Budgeting for a custom home? Viking Custom Homes can help!

As with so many custom home decisions, finding a budget for a custom home is a bit of a balancing act. You want to include all the luxury you can while still being mindful of the kinds of costs that can creep up on you. Custom home building can often be a once-in-a-lifetime opportunity, so many going into the experience are unaware of many of the costs. If you’re unsure of where to begin with building a budget for a custom home, read on to understand where those costs come into play.

Architecture and Design

It isn’t uncommon for around 10-15% of a budget for a custom home to be dedicated to architect and design fees. Some builders package these costs in and can help save money, while also streamlining the process. This can vary so much depending on what architect you go with.

Inspection Fees / Permits

Custom home building can come with a lot of paperwork. This is because it’s important to ensure that your home is built to the proper local codes and is inspected in order to require all necessary permits. An experienced builder will help you navigate this world.

Land and Real Estate

No budget for a custom home is complete without the land to build it on. The cost of buying that land as well as any real estate costs you may pay to have someone help find you that land are going to need to be factored into your total budget.


For most new homeowners, building their own custom home is going to require taking out some kind of loan to pay for all of this. Loans make this process possible but there are often fees that come with them.


You’re going to pay taxes on your materials, subcontractors, and any service providers. It’s hard to account for taxes so new homeowners are often blindsided by these additional costs. Work with an experienced and transparent home builder who can help you determine these costs from the get-go.


Depending on the land purchased, you will need some level of excavation and foundation preparation. Inexpensive land may be difficult to build on, which results in higher overall costs during the building process. Different kinds of foundations have different costs too, like full concrete, concrete slabs, and more.

Building Costs

This category is inclusive of labor and materials required to build the home. Don’t forget about labor as your final bill will be more than just what the materials cost.

Site Work

This includes installation and materials of utilities, HVAC systems, drainage, and paving.

Landscape Costs

You may not want to opt for robust landscaping services with your initial build. If you do, keep in mind that grass, trees, and everything else that makes a quality landscape add up.


A flexible builder is going to be receptive to changes throughout the custom home building process. While you can’t budget for changes you don’t know you’ll make yet, be aware that any changes are going to be costly.

Let us be Your Trusted Maryland Home Builder

Are you ready to bring your dream home to life? Enlist the difference of Viking Custom Homes, Maryland’s trusted home builder of high-quality single-family homes for more than three decades. With over 30 years of experience and a reputation of excellence in over five Maryland counties, we offer the highest standard of customer service and quality assurance for your new home. If you are looking to build on one of our beautiful homesite offerings or on your own lot, we are eager to help you every step of the way towards building your dream home. Let us bring your dream to life by building a home where life unfolds! Contact us online or call today at 410-977-2188 to speak with a member of our trusted team. You can also visit our Facebook, Twitter, or LinkedIn for more information.

This entry was posted on Wednesday, November 3rd, 2021 at 12:40 pm. Both comments and pings are currently closed.