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What Soft Costs Should You Expect Before Building a Custom Home?

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What Soft Costs Should You Expect Before Building a Custom Home?

When homeowners start budgeting for a custom home, most of the attention goes to construction cost.

That makes sense because construction is usually the biggest number in the project. However, before construction even begins, there is another category of expenses that can significantly affect the total budget: soft costs for a custom home.

These costs include planning, design, approvals, consultants, and pre-construction coordination. While they are not the visible part of the build, they are essential to getting the project started properly.

If homeowners do not plan for these expenses early, they can become unexpected surprises later in the process.

Why Soft Costs for a Custom Home Matter Before Construction Begins

Soft costs are the professional fees, applications, studies, and pre-construction expenses required before and during the early stages of a custom home project.

They are separate from hard construction costs such as framing, concrete, windows, finishes, and labour on site.

In simple terms:

  • Hard costs are what it takes to physically build the home
  • Soft costs are what it takes to design, coordinate, approve, and prepare the project

Both categories matter, and both should be considered from the beginning.

Many homeowners underestimate soft costs because they are spread across different consultants, approvals, and phases of work. As a result, the total can feel much larger than expected later in the project.

Instead of appearing as one large contract, soft costs often show up as multiple smaller line items:

  • design fees
  • engineering fees
  • permits
  • surveys
  • energy modelling
  • consultant reports
  • legal and financing costs

Individually, each one may seem manageable. Together, however, they can represent a meaningful part of the overall project budget.

For that reason, soft costs should never be treated as an afterthought.

The Main Soft Costs to Expect Before Building a Custom Home

1. Design Fees

Design fees usually include the architect, residential designer, or design team developing the plans for the home.

Depending on the project, this may also include:

  • schematic design
  • design development
  • permit drawings
  • construction drawings
  • consultant coordination
  • interior detailing or finish selections

In many cases, the more custom and detailed the home is, the more coordination the design phase requires.

2. Structural Engineering

Most custom homes require structural engineering.

Structural engineering supports the design and prepares the structural drawings needed for permits and construction. More complex homes with large spans, retaining conditions, cantilevers, or structural steel usually involve higher engineering costs.

3. Survey and Site Information

Before design can move forward properly, the project team usually needs accurate information about the property.

This often includes:

  • a legal survey
  • topographic survey
  • site measurements
  • elevations
  • property line and setback information

Without this information, the design team may be working from assumptions, which can create expensive problems later.

4. Geotechnical and Site-Specific Reports

Some properties require additional technical review before construction begins.

Depending on the site, this may include:

  • geotechnical investigations
  • soil testing
  • excavation recommendations
  • retaining wall input
  • drainage or servicing review
  • arborist reports
  • environmental or site-specific consultant input

Costs can vary widely depending on the property. However, these reports are especially important for sloped or more challenging lots.

It can also be helpful to review early property information through BC Assessment⁠ and title-related information through the Land Title and Survey Authority of BC⁠ before making major decisions.

5. Permit and Application Fees

Every municipality has its own approval requirements and associated fees.

These may include:

  • building permit fees
  • utility or servicing charges
  • application fees
  • deposits
  • inspection-related costs
  • municipal review fees

These costs vary significantly depending on the municipality, lot conditions, and project scope. Because of this, it is important to understand local requirements early in the process.

If you are planning to build in Vancouver, it helps to review the City of Vancouver home and property development requirements⁠ early so your team can better understand what may apply to your project.

6. Energy Advisor and Step Code Requirements

For new custom homes in BC, energy performance requirements are no longer optional.

Projects now often require:

  • energy modelling
  • Energy Advisor involvement
  • blower door testing
  • documentation tied to Step Code and Zero Carbon compliance

As building requirements continue to evolve, this has become an increasingly important part of pre-construction planning.

You can learn more through the BC Energy and Zero Carbon Step Codes⁠. We also explain this in more detail in our guide, What Homeowners Need to Know About Step Code Before Building a Custom Home in BC⁠.

7. Interior Design and Specifications

Not every homeowner hires an interior designer. However, many custom home projects benefit from interior design support.

Interior design fees may include:

  • finish selections
  • cabinetry design
  • millwork detailing
  • lighting and plumbing fixture coordination
  • interior elevations
  • material specifications

This stage of the process can significantly affect both budget and timeline, especially in homes with a high level of detail.

8. Legal, Financing, and Insurance-Related Costs

There may also be soft costs related to:

  • legal review
  • lender requirements
  • builder’s risk insurance
  • appraisal or financing setup
  • title review
  • accounting or tax advice, where applicable

Although these costs are sometimes overlooked early on, they still form part of the overall project budget.

How Much Should You Expect Soft Costs for a Custom Home to Be?

There is no single number that applies to every project.

Soft costs vary depending on:

  • the size of the home
  • the complexity of the design
  • the municipality
  • the lot conditions
  • the number of consultants involved
  • the level of detail required before permits and construction

Rather than trying to guess a universal percentage, homeowners should focus on building a realistic pre-construction budget based on the actual property and project goals.

That is one reason early budgeting matters so much. If you want to understand the construction side of the budget as well, read our guide on Custom Home Cost in Vancouver⁠.

Why Soft Costs Often Feel Smaller Than They Are

Soft costs often feel smaller because they arrive in stages.

Homeowners may pay for a survey first. Then design work. Then engineering. Then permit fees. Then consultant coordination.

Since the costs are spread across different stages, it becomes easy to underestimate how much they add up to over time.

As a result, many homeowners feel surprised later, even when every individual expense initially seemed reasonable.

Why Early Builder Involvement Helps

Soft costs are one of the clearest reasons to involve the builder early in the process.

At Venture Pacific, we help homeowners look at the entire project before construction begins. That includes not only the likely construction cost, but also the consultant work, reports, approvals, and planning expenses needed to move the project forward properly.

When the builder is involved early, the project usually benefits from:

  • a more realistic budget
  • better alignment between design and cost
  • fewer surprises during pre-construction
  • a clearer path from lot to permit to construction

Ultimately, early collaboration helps homeowners make more informed decisions before major commitments are made.

This is also why selecting your builder early in the custom home process⁠ can make such a meaningful difference.

Soft Costs Are Part of the Real Budget

A custom home budget is not just the construction contract.

It also includes everything required to make the project possible before the build even begins.

When homeowners understand soft costs early, they can plan more clearly, avoid unnecessary surprises, and move into design with a much more realistic understanding of the total project.

For homeowners who want a smoother experience, early planning also supports the kind of process we talk about in How the Right Builder Helps Create a Stress-Free Custom Home or Renovation⁠.

Ready to Plan Your Custom Home Budget More Clearly?

If you are starting to think about building a custom home and want a better understanding of both construction costs and soft costs before moving too far ahead, we would be happy to help.

At Venture Pacific, we believe early planning leads to better decisions, better alignment, and a smoother building experience overall.

If you would like to explore the next steps, book a free consultation⁠ with our team.


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Camila Velasquez

Manager of Business Development

Camila Velasquez brings a people-focused and globally informed perspective to Venture Pacific’s business development efforts. Her background spans real estate, property management, operations, and marketing, giving her a well-rounded understanding of how successful projects come together.

Before moving to Vancouver, Camila worked with international investors in Colombia, managing renovations and overseeing properties from concept through completion. Her experience allows her to connect strategy, design, and execution in a practical way.

At Venture Pacific, Camila leads new business initiatives and builds long-term relationships with homeowners, designers, and architects. She is known for her thoughtful communication, adaptability, and genuine interest in creating meaningful partnerships that support well-run projects.

Veronica Berube

Accounting Manager

Veronica brings over 14 years of accounting experience, with a strong background supporting project-based environments. Her expertise includes financial reporting, budgeting, payroll processing, and ensuring the integrity of financial records. 

In her role at Venture Pacific, Veronica oversees daily accounting operations, ensuring transactions are processed accurately and efficiently.

Known for her passion for processes and attention to detail, Veronica plays a key role in maintaining financial accuracy and supporting the team’s overall success.

Brandon Whitlock

Senior Project Manager

Brandon Whitlock brings over 23 years of construction experience to Venture Pacific, including 18 years as a Master Electrician. His background gives him a deep technical understanding of how complex residential projects come together and how to keep them running smoothly. Brandon is also a CHBA BC Certified Renovation Professional, reflecting his commitment to high industry standards in residential renovation.

As a project manager, Brandon oversees coordination, scheduling, and day-to-day execution, ensuring details are addressed before they become issues. He is known for his steady approach, practical problem-solving, and ability to keep projects moving forward while maintaining high standards of quality and safety.

Homeowners value Brandon’s clear communication and calm presence. He brings structure and reliability to every project, helping ensure timelines, budgets, and expectations remain aligned from start to finish.

Doug Harrison

Senior Site Manager

With more than 50 years in the construction industry, Doug Harrison brings a depth of experience that few can match. Over his career, he has worked across all aspects of residential construction, from hands-on framing to overseeing large-scale builds.

Now semi-retired, Doug provides advisory support to Venture Pacific on select projects. His role focuses on mentorship, quality oversight, and guidance in complex or unexpected situations.

Doug’s presence brings reassurance and perspective. His decades of experience help strengthen decision-making and uphold the high standards Venture Pacific maintains on every project.

Zach McMillan

Project Manager

Zach McMillan has over 14 years of experience in residential and commercial construction, with a strong foundation as a skilled carpenter. His hands-on background gives him a sharp eye for quality and a practical understanding of what it takes to execute complex builds on site.

Zach supports Venture Pacific projects by coordinating trades, managing schedules, and maintaining site organization and safety. He is proactive, detail focused, and known for identifying potential challenges early so they can be addressed efficiently.

His ability to balance technical knowledge with clear coordination helps ensure projects progress smoothly and meet the level of craftsmanship Venture Pacific is known for.

Mark Van Ek

Founder and President

With more than 40 years in construction management and building, Mark Van Ek brings steady leadership and deep experience to every Venture Pacific project. His background spans residential, commercial, and large-scale public facilities across British Columbia and Western Canada, giving him a unique ability to guide complex projects with clarity and confidence.

Mark is known for his calm, straightforward approach and his belief that successful projects start with alignment, transparency, and thoughtful planning. He leads with the mindset that construction should feel collaborative rather than adversarial, placing homeowners and the project team on the same side of the table from the very beginning.

At Venture Pacific, Mark’s role is to set the standard for how projects are planned, managed, and communicated, ensuring every client feels informed, supported, and confident throughout the building journey.