How do I estimate the cost of building a house?
These costs per square foot do not include the cost of land, local impact fees, financing costs, marketing costs, or sales commissions. The cost of land or building site varies tremendously depending mainly on location.
For home builders, the ideal breakdown of the selling price or market value of a new home is as follows:
25% material, 25% labor, 25% land cost, 12.5% builder profit, and 12.5% builder overhead, which includes the cost of running their business, construction financing costs, and the new home’s marketing and sales costs.
All builders must constantly balance the material, labor, land, and overhead costs when estimating the costs of building a new home. This is what construction cost estimating is all about.
How many bags of cement do I need for 1000 square feet?
How much should I charge for labor?
Consider the Style, Quality and Features of your House
The cost doesn’t only depend on the size and dimensions of your house but also on features and styles that you select from architectural point of view. Talking about style, we refer to the shape and dimensions of various elements like stairs, terrace etc. The cost for the element which is square or rectangular in shape is lesser as compared to round or some special shape. Similarly, if we have multiple stories in a building then the cost will be lesser as compared to a single story with same total square footage.
Quality takes into account the type, color and dimensions of of various construction materials. The cost greatly depends on the quality of material. For example, Marble counter-tops will cost you more as compared to granite counter-tops. Moreover, building features like the roof pitch, overhang dimensions and span lengths will also impact the total budgeted cost of project.
Here are a few benefits of purchasing a Cost-to-Build Report:
Cost varies by region
Region is one of the biggest cost factors in building your own home. According to the ”U.S. Census Bureau Survey of the Median Price per Square Foot” of new single-family homes in 2017, the average cost was $161.53 in the Northeast, $139.48 in the West region, $100.01 in the South, and $106.79 in the Midwest. It will cost you the most to build in the Northeast.
Steinke also says that there are build restrictions that vary by city, county, and state. Check the land rules and regulations before embarking on construction, which an agent can also help you do.
“Having a Realtor who knows the local area mitigates your risk,” Steinke says.
If you’re trying to save money by building in a rural area in particular, you’ll also need to consider the costs of installing a septic system or sewer hookup, propane for heating, and how much concrete you’ll need to reach the road.
Systems that are considered more luxury or high-end, including plumbing, electrical, and HVAC, can cost around $34,000. The HVAC alone can cost anywhere from $3,250 to $12,586 for a 2,000-square-foot home, while plumbing and electrical work will cost around $10,000 each, depending on the size of the home and number of bathrooms.