It’s most people’s dream to own their very own home. But before doing so, weighing the pros and cons of whether to buy or build is something that should be taken into account.
You’ve done all that and you’ve decided that the appropriate course would be to build. Congratulations as you’re about to go down a road that will be yours to celebrate at the end.
Building a home is far from easy. The amount of time and resources you will need to dedicate to making sure that everything goes smoothly is overwhelmingly high. But the ends justify the means, and everything will be worth it at the end.
But have you ever asked yourself how much does it cost to build a new home? Before rushing to a contractor and setting up appointments with companies that will build your home, make sure to read this article as we’re going to give you a, hopefully, a precise estimate of how much the entire process will cost you.
Before You Start
There are two things that you need to do before you build your home. It’s safe to say that you can’t build anything without two things.
· Buy A Property
To build something, you need to own the land. So for this, you will need to find a buyer’s agent that will negotiate a deal for the land where you want to build your home, this is according to experts at bestutahrealestate.com.
· Make Plans
Once you’ve acquired the land, it’s time to make some decisions. This step involves making plans for each phase of the construction process, and do understand that each process affects the cost of building your home.
Now let’s get into breaking down the costs for each phase of the home-building process.
· Site Work
This part involves paying for site work, such as inspections, permits, and building plans. Site work also includes fees for water and sewer inspections, which usually cost around $5,000! The building permit will cost you around $4,000 and fees for engineering and architecture will cost you around $3,000. It’s best advised that you have the architect and engineers develop the building plan together, where they can work together if any problems occur.
All that accounts for around $14,000, we’ve included a $2,000 fee which the government charges for new home-builders.
Foundation work requires a lot of work, so make sure to plan for these expenses. Foundation involves paying for equipment, materials, and labors, and this can cost anything up to $25,000.
The frame of your house is one of the most expensive cost, and it can come hard on your budget. But it is very important, so don’t neglect it. Framing can cost you anything up to $41,000.
· Exterior Finishes
An exterior wall will cost you around $15,000, and it is yet an important part that shouldn’t be overlooked or underpriced. Other expenses also include doorways, windows, and the garage, which can cost up to $9,000. The roof will cost you around $8,000, so all of that will cost you somewhere in the region of $32,000.
· System Installation
Systems such as HVAC, plumbing, and electricity will cost you around $10,000 each. So the cost for major system installation will be somewhere in the $30,000 region.
· Interior Finishes
This is yet another expensive cost when it comes to your home. The price for the interior finishes is very subjective. It accounts for everything inside your home, and some choose to spend more than others. But a general rule of thumb is that you’ll spend no less than $40,000 on it, and upwards to hundreds of dollars.
· Sales Price
The final and heaviest cost for home-building in the sales price. The sales price, in our case, is determined by your builders and vendors. This can take a toll on your budget in the region of $90,000! Furthermore, other fees related to the sales price can come in the region of $100,000! This includes general expenses, sales commission, financing, and marketing.
Final rough estimate to building a new home – ~$400,000 – $420,000.