- How Much Money Is Needed To Invest In Rental Property?
- Should A Real Estate Investor Get An Agent’s License?
- 5 Big Factors That Affect The Costs Of Renovating Your Home
- SIBOR Hike – What You Can Do With Your Current Loan
- 6 Basic Don’ts Of Real Estate Negotiation Tactics
- Will New Condo Relaunches Trigger The Great Property Sale We Have All Been Waiting For?
- 10 Proximity Amenities That Add Value To Real Estate
- How To Get Personal Loans More Easily With Good Credit
Soft costs are cost related items to the construction of the property that are not associated with the structure, but nevertheless incurred during the construction project.
They are also sometimes referred to as indirect costs.
Soft cost expenses include services and expenses like:
- Legal fees
- Architectural fees
- Financing costs
A good metaphor is to compare soft costs with software costs for computers.
A user will have to spend money on hardware and software.
The money spent on software is the soft costs.
They cannot be physically seen unlike raw materials, but plays a critical role in the function of the whole project.