Hard Costs vs. Soft Costs in Construction & Real Estate Development

Hard Costs vs. Soft Costs in Construction & Real Estate Development //

As a real estate developer, sometimes the difference between a profitable investment and failed project is your ability to navigate cost budgeting challenges.

But if you don't understand what kinds of component costs you'll likely incur, or more importantly how to manage them, you'll struggle to forecast expenses and build a development budget that can guide your project.

To make construction cost budgeting more intuitive, the industry has coined the terms, hard costs and soft costs. They are two broad categories used to describe the types of construction costs you'll encounter during a project.

In this video, we'll breakdown hard costs vs. soft costs, talk about how they might impact your project, and discuss a couple of challenges real estate developers need to keep in mind when creating a real estate development budget.

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⌛ Timestamps ⌛
0:00 Introduction
0:14 Intro to Cost Budgeting
1:04 Hard Costs
1:39 Soft Costs
2:30 What to Consider When Building a Budget