Most people start pricing a new home with one number: what a builder charges per square foot. It is a useful number, but it describes the house and very little of what surrounds it, which is how people end up short of money halfway through a project.
On top of the build itself, you will usually pay for some or all of these: land closing costs and surveys, testing the soil, clearing and grading the lot, bringing water, sewer, power and gas to the house, permits and impact fees, loan interest and insurance while the house goes up, and the finishing items that builders often leave out, like landscaping, window coverings and sometimes appliances. On a rural lot with no utilities nearby, those items alone can run well into five figures.
The rest of this guide goes through each one, with real US figures where good data exists. Where costs depend too much on your county or your lot to give an honest average, we will say so.
1. Why the price per square foot leaves things out
The National Association of Home Builders (NAHB) runs a regular survey of what it costs builders to put up a typical single-family home. In the 2024 edition, construction averaged $428,215, or about $162 per square foot of finished space, for a home of 2,647 square feet.[1]
That figure is construction only. In the same survey, the finished lot was a separate 13.7% of the sales price, and builder profit was another 11.0%.[1] So the moment you compare a per-square-foot quote with what a finished home really costs, you are already comparing different things.
Builders also draw the line in different places. One price includes the driveway and permits, another stops at the front step, so two quotes at the same rate can end up far apart. Read the inclusions list before you compare headline rates.
2. Buying the land
If you are buying a lot, the purchase price is the obvious cost. Around it sit several smaller ones that add up:
- Closing costs, which can include title search, title insurance, escrow or attorney fees and recording fees.
- A boundary survey, so you know exactly where your lines are before you design anything.
- A topographic survey if the lot slopes, because your architect and engineer will need it.
- Property tax on the land from the day you own it, even while nothing is built.
- HOA transfer or review fees if the lot sits in a community with an association.
Land loans also tend to cost more than mortgages on finished homes, and some lenders want a larger down payment for raw land. Ask your lender about this early, because it affects how much cash you need before construction even starts.
3. Testing the lot before you commit
A lot can look perfect and still be expensive to build on. Two tests tell you a lot before you are locked in.
If the house will use a septic system, you will almost certainly need a perc test, which measures how fast the soil absorbs water. Angi's 2026 data puts the average around $1,300, with most tests between $750 and $1,900.[3] Larger lots and deeper test holes can push it toward $3,000.[3] Results usually stay valid for two to five years, depending on local rules,[3] so a test done by the seller a few years ago may not count.
A geotechnical or soil report tells your engineer what the foundation will sit on. Expansive clay, high groundwater or rock near the surface can all change the foundation design, and foundation changes are rarely cheap. If you can, make your purchase offer contingent on both tests. A failed perc test on a lot with no sewer connection can mean an engineered septic system, or a lot you cannot use the way you planned.
4. Clearing and preparing the site
A wooded or overgrown lot has to be cleared before anyone can dig. Angi's 2026 figures put professional land clearing at roughly $1,397 to $6,174 per acre, with the spread driven mostly by how dense the vegetation is and how hard the site is to reach.[4] The average clearing project in their data comes to $3,778, though jobs range from about $400 up to $15,000.[4]
Clearing is only the start. After it come grading, sometimes imported fill dirt, erosion control such as silt fencing (often required by the county), a gravel construction entrance so trucks do not sink, and stump or rock removal. A sloped lot can also need retaining walls. If the lot has an old structure on it, demolition and debris removal come first.
Smaller items like a temporary power pole, a portable toilet and dumpsters are easy to forget. Ask whether they are in the builder's price.
5. Getting utilities to the house
Costs that often sit outside a builder's price
Typical US cost ranges, 2026 national figures
Source: Angi cost guides, 2026 data: utilities on land, perc test, land clearing.
Utilities surprise a lot of first-time builders, especially on rural land. A lot that looks cheap is sometimes cheap because nothing is connected to it.
Angi's 2026 national data puts the cost of getting utilities onto land at between $6,500 and $30,000.[2] Distance is the biggest factor, because contractors price trenching and pipe by the linear foot.[2] Broken down:
- Connecting to city water typically costs $1,000 to $6,000. [2]
- Connecting to a city sewer typically costs $1,500 to $5,700. [2]
- Drilling a private well instead typically runs $5,000 to $10,000. [2]
- Trenching for electrical lines costs about $400 to $1,200 per 100 linear feet. [2]
- Natural gas lines run around $5 to $25 per linear foot where a supply is nearby. [2]
On top of the work itself, Angi suggests budgeting $150 to $2,300 for related permits,[2] and many utilities charge separate tap or capacity fees to connect a new home. Call each utility before you buy the land and ask two questions: how far is the nearest connection, and what will they charge to connect a new single-family home?
6. Permits, impact fees and design fees
Permits, fees and design add $32,719 to an average new US home
Site work costs reported by builders in 2024 (7.6% of total construction cost)
Total: $32,719
Source: Cost of Constructing a Home 2024, National Association of Home Builders (NAHB).
Every new home needs a building permit, and most counties charge several other fees around it. In NAHB's 2024 survey, builders reported these average site work costs on a typical home:[1]
- Building permit fees: $7,640
- Architecture and engineering: $6,480
- Impact fee: $6,367
- Water and sewer fees and inspections: $6,260
- Other site work: $5,972
Together that is $32,719, or 7.6% of the total construction cost.[1] Impact fees deserve a special mention, because many first-time builders have never heard of them. They are charged by local governments to help pay for roads, schools, parks and other services that new homes use, and the amount varies widely from one jurisdiction to the next.
Regulation as a whole costs more than the permit fees alone suggest. Using 2021 data, NAHB estimated that regulation accounted for 23.8% of the average price of a new home, a figure that covers code changes, delays and compliance as well as fees.[5]
On design, a stock plan costs far less than a custom architect's design, but either way your county may also ask for engineering, a site plan and energy calculations.
7. Paying for the money: loan costs during the build
Most people building a home use a construction loan. These usually release money in stages, called draws, as the work reaches agreed points, and you pay interest on the amount drawn so far. That interest is a real cost of building, and it is easy to leave out of a budget because it never appears on a builder's quote.
Lenders also charge for the setup and the oversight. Expect some combination of an origination fee, an appraisal, and inspection fees each time a draw is released. If you use a construction-to-permanent loan, there is usually a closing when it converts to a regular mortgage. Get a written fee list from your lender and add it to your budget line by line.
One more cost sits here for many families: housing. If you are renting while you build, every month of delay is another month of rent on top of the loan interest. Weather, inspections and material deliveries all slip, so budget a few months of rent beyond the builder's schedule.
8. Insurance and taxes while you build
Builder's risk insurance covers the house and materials against damage and theft during construction. Sometimes the builder carries it and sometimes the owner does, so check your contract; your lender may ask for proof.
Property tax does not wait for the house to be finished either. You will pay tax on the land from the day you buy it, and in some areas the assessment rises as the improvements go in. Once the house is done, you will need a homeowners policy before you move in, and your lender will want it in place at closing.
9. The finishing items builders often leave out
The end of a build is where budgets crack, because it is where tired owners start saying yes to everything. These are the items most often missing from a base price:
Start outside. In NAHB's survey, landscaping averaged 2.2% of construction cost and the driveway 2.3%.[1] Some builders include a basic lawn and a concrete drive, while others hand you a graded dirt yard. A patio, deck or fence is usually extra.
Window coverings are rarely included. On a large house with lots of windows, blinds or shades for every room add up quickly.
Appliance packages vary more than people expect. Some builders include a full kitchen, some include only a range and dishwasher, and very few include a washer and dryer. Check the list item by item.
Then there are allowances. A builder's base price usually sets an allowance for flooring, lighting, cabinets and fixtures, and if your choices cost more, you pay the difference. Ask for every allowance amount in writing before you sign, and compare it with what you actually like in a showroom.
Change orders are the last trap. A change after the contract is signed usually costs the price of the change plus an admin or markup fee, and moving a wall after framing costs far more than moving it on paper.
10. Moving in
Before your first night in the house, plan for movers or a truck, utility deposits, new locks or a security system, lawn equipment for the new yard, and furniture for rooms you did not have before.
Set aside a small fund for the first year as well. New homes settle, and small fixes in the first months are normal. Your builder's warranty should cover defects, so learn how to file a claim before the warranty period runs out.
11. How much contingency to set aside
There is no official rule for contingency, and anyone who quotes you an exact percentage for your project without seeing it is guessing. The right amount depends on how much is still unknown.
Our view: in the QuickBuildCost calculator we default to 10% because it is a sensible floor for a simple house on a prepared lot with a fixed-price contract. Go higher if you are building on raw or rural land, using a custom design, signing a cost-plus contract, or acting as your own general contractor. If you finish without touching the contingency, you have a head start on the landscaping.
12. Hidden costs checklist (summary table)
Use this as a quick check against your budget. Figures are national ranges or averages; your local costs may be higher or lower.
| Cost | Typical US figure | Source |
|---|---|---|
| Perc test | $750 to $1,900 (average about $1,300) | Angi 2026 |
| Land clearing | $1,397 to $6,174 per acre | Angi 2026 |
| Utilities brought to raw land | $6,500 to $30,000 | Angi 2026 |
| City water connection | $1,000 to $6,000 | Angi 2026 |
| City sewer connection | $1,500 to $5,700 | Angi 2026 |
| Private well | $5,000 to $10,000 | Angi 2026 |
| Utility permits | $150 to $2,300 | Angi 2026 |
| Building permit fees | $7,640 average | NAHB 2024 |
| Impact fee | $6,367 average | NAHB 2024 |
| Water and sewer fees, inspections | $6,260 average | NAHB 2024 |
| Architecture and engineering | $6,480 average | NAHB 2024 |
| Landscaping | 2.2% of construction cost | NAHB 2024 |
| Driveway | 2.3% of construction cost | NAHB 2024 |
| Land closing costs, surveys | Varies by state and lot | Get quotes |
| Construction loan interest and fees | Depends on rate, draws and timeline | Ask your lender |
| Builder's risk and homeowners insurance | Depends on location and value | Ask your insurer |
| Window coverings, appliances, moving | Depends on your choices | Your own budget |
13. Questions to ask your builder before you sign
- Exactly what does your price per square foot include, and what does it exclude?
- Are permits, impact fees and utility connection fees in your price, passed through at cost, or my responsibility?
- What allowances are in the contract for flooring, cabinets, lighting and fixtures, and what are the amounts?
- How do you price change orders, and is there an admin fee?
- Do you carry builder's risk insurance, or do I need to?
- Are the driveway, landscaping and appliances included, and to what standard?
- What happens to the price if material costs rise during the build?
- What does your warranty cover, for how long, and how do I file a claim?
Tick off each item, enter your own quotes and see the running total in the QuickBuildCost calculator.
Frequently asked questions
What are the most commonly forgotten costs when building a house?
Utility connections on rural land, impact fees, loan interest during construction, rent while you build, landscaping, window coverings and appliances come up most often. Several of these never appear on a builder's quote, so they have to go into your own budget.
Are permit fees included in a builder's price?
Sometimes. Some builders include permits and pass the cost into their price, others list them separately, and on some contracts the owner pays them directly. In NAHB's 2024 survey, building permit fees averaged $7,640 on a typical new home. Check your contract before you assume anything.
How much does it cost to connect utilities to a new house?
Angi's 2026 data puts utility installation on land at $6,500 to $30,000, depending mostly on how far the lot is from existing lines. A lot with water and sewer at the street costs far less to connect than a rural lot that needs a well and septic system.
Do I need a perc test to build a house?
You'll need one if the house will use a septic system, because the county has to know the soil can absorb wastewater. Perc tests average around $1,300. If the lot connects to a public sewer, you usually don't need one.
Is it cheaper to build on land I already own?
You skip the purchase price and the land closing costs, which helps. You still pay for testing, clearing, utilities, permits and every other site cost in this guide, so get those priced before you assume the savings are large.
Sources
- National Association of Home Builders (NAHB), "Cost of Constructing a Home 2024," Eric Lynch, January 2025.
- Angi, "How Much Does It Cost to Get Utilities on Land?" 2026 data.
- Angi, "How Much Does a Perc Test Cost?" 2026 data.
- Angi, "How Much Does It Cost to Clear Land?" 2026 data.
- Seattle King County Realtors, "Builders Tally Cost of Regulations for New Homes," March 2025, reporting NAHB research based on 2021 data.
Figures are national averages and ranges from the sources above and are for planning only. Costs in your area may be very different. Always get written quotes from licensed local professionals.
Figures last checked October 5, 2026. National averages are a planning guide, not a quote. See our editorial policy and data sources.
