How to Budget for a Custom Home: What People Forget to Include
Expert budgeting tips from your custom home builder in Southwest Michigan
Building a custom home is an exciting investment in your future—but if you're not careful, budget surprises can turn that dream into stress. At Mark Scott Homes, we help clients plan with clarity from day one. We believe in open-book financials, smart planning, and no surprises.
Whether you’re building a vacation home on Lake Michigan or your forever home in Granger, here’s what many people forget to include in their custom home budget—and how to avoid the trap.
💰 The Base Budget: Where Most People Start
Your builder gives you a price per square foot or a preliminary estimate. Great—but that’s just the beginning.
There are several important cost categories that are often missed by homeowners new to the process. Here’s a breakdown of the hidden or underestimated items that can impact your final price.
🚧 1. Site Costs
Not all land is build-ready. Depending on your lot, you may need:
Soil testing or land clearing
Grading and excavation
Driveway installation
Septic systems or well drilling
Utility connections (electric, gas, internet)
Tip: When budgeting for a custom home in Michigan or Indiana, always consider site work early. We help homeowners evaluate lots before they buy to avoid surprises.
🎨 2. Selections Beyond “Standard”
Even a generous builder allowance might not cover the luxury features you envision. Common upgrades that add cost include:
High-end appliances
Custom cabinetry or millwork
Premium windows and doors
Natural stone countertops or tile
Designer light fixtures or plumbing
Tip: At Mark Scott Homes, we guide you through the selections process with realistic allowances based on your vision—not a lowball estimate to win your business.
🛋 3. Furnishings & Window Treatments
After you move in, your home still needs to be lived in. Many people forget to budget for:
Furniture for new spaces
Rugs, decor, or art
Blinds, shades, or drapes (which can add up quickly)
🌳 4. Landscaping & Outdoor Living
Outdoor spaces are often left out of the initial build budget, yet they’re key to enjoying your home. Don’t forget to include:
Grading and seeding or sod
Hardscaping like patios or walkways
Decks, porches, or outdoor kitchens
Irrigation systems or landscape lighting
Tip: If you’re building a Lake Michigan home, your outdoor areas matter just as much as your interior—plan accordingly!
📝 5. Contingency Budget
This is a big one. No matter how well you plan, surprises happen. From product delays to minor design changes, a contingency budget helps protect your peace of mind.
We recommend setting aside 5–10% of your overall project cost for the unexpected.
👷 6. Professional Fees & Permits
Depending on your project scope, you may also need to plan for:
Architectural design fees
Structural engineering
Interior design consulting
Permits and municipality fees
At Mark Scott Homes, we’re transparent about these up front and help you plan for every piece.
🧭 Final Thought: It’s Not Just the House—It’s the Experience
A great builder doesn’t just give you a number—they help you understand what’s behind the number. As a trusted custom home builder in Southwest Michigan, we make budgeting part of a guided, stress-free experience.
When you know what to expect (and what to budget for), building your dream home becomes an exciting journey—not an expensive surprise.
💬 Ready to Plan Smart?
If you're starting to plan your custom home in New Buffalo, Granger, St. Joseph, or anywhere in between—we’d love to help you get it right from day one.
Contact Mark Scott Homes to schedule a consultation and let’s start building smarter, together.