Architecture-Building & Construction

How Much Will it Cost to Build Your New Home?

Dreaming of building a new home, but worried about the expense? If you have detailed blueprints, your builder can give you a close estimate. But long before you draw up the final plans, it pays to do some "guesstimating." Knowing how much the project might cost will help you modify your plans to meet your budget. Here are handy tips from Ken Katuin, president of HomePlanFinder.com and editor of the company's email newsletter, Home Ideas.
1. Contact Local Builders
Contact builders who build homes that are similar in size, quality and features to the home you want to build. The builder can give you a ballpark idea of what it would cost to hire them to build your dream home. A builder can tell you around how much per square foot they usually charge for home construction.
However, it is probably just as important knowing what is included at that price. If you ask, some builders will provide you a list showing the materials they will use.
2. Use Square Footage
Look at newly constructed homes that are similar in size, style, quality and features to the home you want. Take the price of the home, deduct the price of the land and divide that amount by the square footage of the home.
For example, if the home is selling for $230,000 and the land cost $30,000, then the construction cost is around $200,000. If the home is 2,000 square feet then the cost per square foot is $100.
Use several new homes in your area to get an approximate square footage price. After you have calculated an average square footage cost, you can multiply that cost by the finished square footage of your house plan to get a ballpark estimate.
3. Some Features Cost More
The most expensive areas in a home are usually the bathrooms and kitchen. The number of windows and the size and quality of windows can also affect the cost. Vaulted ceilings and high roof pitches can increase the cost of a home. When using other homes to calculate an estimate, be sure the home has a similar style and features of the home you plan to build.
The cost per square foot is often higher for a small home than that of a larger home. When building a larger home, the cost of expensive items (such as a furnace or kitchen) is spread over more square footage. Consequently, a larger home may have a lower square footage cost than a smaller home. Also, it usually costs less to build a two-story home when compared to a one-story home that has the same square footage. This is because a two-story home will have a smaller roof and foundation. Plumbing and ventilation are more compact in two-story homes.
Small details in the design of your home can make a big difference in the price. To save on costs, begin estimating construction expenses before you select your final blueprints. Here are important factors to consider.
Size of Home
When building a home, it's best to work with even numbers. Have your home size rounded up or down to increments of two feet. This reduces wasted materials. Also, it's most economical to build a home which is no deeper than 32 feet. If the depth exceeds 32 feet, then your roof trusses may need to be specially designed and will be more expensive.
Shape of Home
Homes that have a rectangular or box shape cost less to build. Having more angles and corners in the shape of your home can increase the amount of labor and materials needed to build a home. Dome shaped homes also make efficient use of materials and tend to cost less than other shapes.
Site Preparation Preparing a site for construction can have a big impact on the cost of a home. Building on a flat lot will usually cost less. If you have to haul in lots of dirt, do a lot of grading, clear trees, or blast through large rocks, then site preparations can become more expensive.
Cost Overruns
Usually the finished cost of a home is more then the original bid price. Cost overruns occur from overspending the allowances, making changes and encountering unforeseen problems. Proper planning can greatly reduce cost overruns. In general, it is a good idea to allow an additional 10% to cover unexpected costs.
Inflation and Market Conditions
Usually the cost of building a home increases around 3% to 6% per year. If it will be several years before you plan to build, remember to include inflation into the cost estimate for your home. When using other homes to compare prices, try to use homes that have been built within the last six months.

posted by Ronald @ 2:47 AM