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I'm CEO of Dunn & Stone Builders. I joined the company in July 2010 as purchasing manager and purchased the company in 2019. I've been the primary client contact for plan design and turning buyer goals into buildable plans since 2010. The company has built more than 1,000 homes across Greater Houston since 1999.
Building a custom home should feel exciting. You are creating the place your family will live for decades, not picking a model off a shelf. Yet the base price quoted by most builders leaves out a long list of costs that only become visible once dirt starts moving.
Those hidden costs of building a house routinely add 10–20% to the overall budget and can climb past 25% on challenging lots or highly customized plans.
At Dunn & Stone Builders we lock a fixed contract price after the homesite evaluation so the number you sign is the number you close. Across recent projects our portfolio average sits at $213 per square foot. That process exists because we have watched too many families get blindsided by site work, utility runs, and last-minute change orders.
This guide walks through every major category so you can budget with eyes open and avoid the most common traps we see in Greater Houston. See the communities where we build and schedule a consultation if you want to walk a specific lot with us.
For the full pricing picture see our complete breakdown of home building costs. You can also run your own numbers with the free cost-to-build calculator or review how we approach total cost transparency.
The base price of a house covers the structure, the finishes inside the allowance package, and the mechanical systems that make the home livable. Everything outside that box is variable. The biggest variables are the land itself, the municipality, the design process, and the market conditions that exist when crews are on site.
Nationwide, site work averages 7–8% of final cost. On Greater Houston acreage, clay soils, long utility runs, or flood-elevation requirements, that percentage climbs quickly into double digits. The rest of the gap comes from permits, impact fees, change orders, and the long list of items that only become visible after the Certificate of Occupancy.
Most of these costs are not true surprises to anyone who builds for a living. They simply stay invisible to first-time custom-home buyers until the soil report comes back or the utility company quotes the run. At Dunn & Stone Builders we treat the homesite evaluation as a non-negotiable first step. The goal is to surface the variables while there is still time to price them honestly. Learn more about how we approach building on your own lot.
If one category is responsible for the largest budget shocks, it is site preparation. A flat, already-cleared lot with utilities at the curb is the exception, not the rule.
Large trees commonly cost $500–$2,500 each to remove. Clearing a heavily wooded lot can run into the tens of thousands. Grading on expansive clay soils common across Montgomery and Harris Counties often requires engineered fill and compaction testing. Rock excavation, when it appears, can add $5,000–$25,000 or more.
At Dunn & Stone Builders we walk every homesite before we write a contract. That evaluation surfaces the soil, drainage, and elevation issues that turn into expensive surprises later. On recent projects the difference between a simple suburban lot and an acreage lot with trees and slope has been $20,000–$40,000 in site work alone.
Clay soil is the quiet driver in much of the Houston market. It expands when wet and shrinks when dry. That movement forces deeper beams, better drainage, and sometimes additional fill before the foundation can be poured. Skipping the geotechnical report to save a few thousand dollars almost always costs more later.
City water and sewer tap fees in the Houston area typically fall between $2,500 and $10,000. Rural lots that need a well and septic system push far higher. A standard septic runs $6,000–$15,000; engineered systems on poor-perc soil can reach $20,000–$40,000+. Wells range $3,000–$15,000 depending on depth. New electrical service, especially if a transformer or long underground run is required, adds another $3,000–$12,000.
These numbers move with distance from existing lines and with the soil’s ability to accept a conventional septic. On acreage in northern Montgomery or Waller County, Dunn & Stone regularly sees the combined well-and-septic package land between $25,000 and $50,000. That is why we price the utility scope during the homesite evaluation rather than after the contract is signed.
A short concrete driveway on a suburban lot is modest. A 200–300-foot drive on acreage, complete with culverts or retaining walls, often lands between $8,000 and $25,000. Temporary construction access roads add another $2,000–$8,000. Lake Conroe waterfront lots frequently need additional shoreline or bulkhead work that is never in the base house price. You can see examples of the areas we serve on our where we build page.
These fees rarely appear in the glossy brochure, yet they must be paid before the first inspection.
Building permits in Montgomery County commonly run $2,000–$5,000. Harris County offers a 50% discount on permits for homes 1,800 square feet or smaller. Impact fees, plan review, surveys, and environmental or drainage studies can add several thousand more. Architectural or engineering stamps required by the county typically cost $2,000–$8,000.
A June 2026 National Association of Home Builders study found that federal, state, and local regulations now contribute $131,734 to the average new-home price, or 26.4% of the $499,500 average sales price. Of that total, $84,939 occurs during construction and $46,795 during land development. Building-code changes over the past decade alone account for more than $40,000 of the increase.
For more on the local permitting sequence, see our page on permitting and preconstruction.
Even the best plan cannot eliminate every variable once crews are on the ground. The difference between a smooth build and budget stress often comes down to how thoroughly the plan and site were locked before the contract was signed.
Change orders average 4–10% of construction cost on most projects and climb higher on highly customized homes. Real examples from Dunn & Stone builds include a granite slab upgrade that added $3,000, an HVAC system change that added $10,000, and a late patio addition on an elevated flood-elevation home that added $50,000.
We have also seen other builders present a $70,000 surprise at the final meeting for a driveway and power run that had never been shown on the original drawings.
At Dunn & Stone our fixed-contract process is designed to keep those numbers near zero. Selections are locked before the contract is signed. The price you sign is the price at closing unless you choose to add something.
The difference is sequence. When the homesite is evaluated, the plan is refined for that specific land, and the major selections are finished before the contract is written, most of the usual change-order fuel is already gone. The remaining changes are almost always client-driven upgrades, not missing scope that was never priced.
Our process of building a custom home is built around that sequence. For context on how this differs from volume builders, see our custom vs production homes comparison.
Material waste typically runs 5–15%. Delivery fees and fuel surcharges appear when lumber or trusses travel long distances. Market spikes in framing lumber or mechanical equipment can still force adjustments even under a fixed contract if the allowance language is written that way. At Dunn & Stone we lock major material packages early to reduce exposure.
Houston weather can stretch a schedule by weeks. Each extra month of interest on a construction loan adds $1,000–$3,000 or more depending on the loan size. Temporary weather protection for framing or concrete can cost $5,000–$15,000. Across recent Dunn & Stone projects the average from start of construction to move-in is 210 days; that number already includes normal Houston rain days.
The Certificate of Occupancy is not the finish line.
Basic landscaping in the Houston area starts at $3,000–$15,000. Irrigation systems add $2,500–$7,000. Retaining walls run $15–$50 per square foot. Full outdoor living spaces easily reach $10,000–$50,000+. Sod alone costs $0.90–$2.00 per square foot.
Appliance packages commonly run $8,000–$25,000. Light fixtures add $3,000–$8,000. Window coverings average $100–$500 per window. Laundry appliances sit between $2,000 and $6,000. Many of these items sit outside the construction contract and must be paid directly by the homeowner.
Professional movers for a typical Houston-area home run $2,500–$8,000. Utility deposits, security systems, and temporary housing if the schedule slips add another $1,500–$10,000.
Once you move in, property taxes are reassessed at the home’s full value. Homeowners insurance for a new custom home in the Houston area typically ranges $1,200–$3,000 per year. Flood insurance, when required by elevation or zone, is additional. Builder’s risk insurance during construction usually costs $1,500–$4,000; learn more about what builder’s risk insurance covers.
A contingency fund is the single most effective protection against hidden costs. Under a traditional cost-plus or allowance-heavy contract, 10–20% of construction cost is typical, or 20–25% for acreage, challenging soil, or highly customized designs. Under a true fixed-price contract the required contingency drops to 5–10% because the major variables (soil, utilities, site work, and selections) have already been priced and locked during the homesite evaluation.
At Dunn & Stone we prefer to roll the contingency into the construction loan so it is available if needed and does not sit on a high-interest credit card. Unused contingency simply reduces the final loan balance. The goal is never to use the contingency. The homesite evaluation, locked selections, and fixed contract exist so that the signed number and the closing number stay the same.
In practice that means the contingency is insurance, not a budget line that is expected to be spent. When the soil report is clean, the utility runs are short, and the plan is locked early, the contingency stays intact and the client closes closer to the original number. That is the outcome we design for on every project.
If you are preparing financing, our guide on how to get a loan to build a house and the details of one-time close construction loans explain how contingency is typically handled.
Plan for 10–20% of total construction cost on most projects, or 20–25% for uneven terrain, heavy tree cover, or complex custom designs. Under a fixed-price contract with a thorough homesite evaluation the practical contingency can be closer to 5–10%.
Site preparation, utility connections, and permit fees vary the most because they depend on the specific land and municipality. Change orders during framing are the next most common source of sticker shock.
Start with a realistic budget that already includes site work and soft costs. Complete soil tests and a homesite evaluation before the contract is signed. Finalize selections before framing. Use a fixed-price contract so the number cannot drift without your written approval.
Yes. Most homeowners include it in the loan so the funds are available if needed and do not require high-interest consumer debt. Unused contingency simply pays down the loan at closing.
Allowances are the builder’s estimated cost for finishes you choose, such as flooring, lighting, and countertops. Upgrading those items is a conscious decision. Hidden costs are the land, utility, soil, permit, and schedule variables that were never fully priced in the original base number.
On a typical Greater Houston custom home, site preparation ranges from $5,000–$30,000+. Rural acreage in Waller, Grimes, or northern Montgomery County with long utility runs or septic systems can reach $25,000–$75,000 before the foundation is poured.
Hidden costs of building a house typically add 10–20% to the construction budget and can exceed 25% on difficult lots. The largest variables are site preparation, utility connections, permits, and change orders. To put real numbers against your specific lot and plan, use the free cost-to-build calculator or schedule a homesite evaluation with Dunn & Stone Builders so the property can be walked, the variables priced, and a fixed contract locked before any dirt is moved.
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