![]() There is no doubt that the best way to squander money when building your own home is not to cost the project accurately in advance. If you have owner-built a house, you probably realize this as well. They also know how important it is to set a realistic budget and then stick to it. There will be wide price disparities market-to-market and vendor-to-vendor, so consult building and real estate professionals for custom quotes to determine your best approach.Professional builders and quantity surveyors know how important it is to have accurate estimates and costings when doing any form of construction. If owning a newly constructed home is your only goal, and there aren’t many new homes being built in your area, it may be worthwhile to build. This 2015 NAHB cost-to-build-a-house estimate is higher than the 2015 average new home sales price of $365,700, so it boils down to whether you are up to the challenge and extra cost of managing a building project, or prefer to just buy a newly constructed home. What all of this means is that you can build a 2,800-square-foot home for about $468,318 if you hire and manage your vendors well. If you were building your own home with contractors as vendors, this last category would be embedded into their quotes. For a consumer, these costs will likely be higher because all support are individual vendors, even if they’re consolidated under one general contractor.Īn additional cost of financing that may not be captured in any other category above.Ī combination of $3,739 estimated marketing cost the builder incurs $15,104 sales commissions paid to on-staff or outside real estate agents to sell the home and $42,292 for profit the builder estimates for its work. The builder cost to manage and pay for anything that’s not embedded into the list above. The financing cost estimate is for a builder, not a consumer, which may be higher. Also includes an estimate for financing the lot. Adding estimates for these items increases the building cost as follows: ExpenseĪ lot with core utilities such as gas, water and electric already running to it. Vendors include contractors to manage all different elements of the project, a mortgage lender to finance the project, and a realtor to market and sell the project. Have you been pre-qualified for a loan yet? Start hereĮven with this level of detail, it’s critical to note the costs above are strictly the costs to build a house, and exclude land acquisition and various vendor costs. Landscaping, decks, patios, porches and driveway, as well as overall site cleanup on completion. This expense also includes appliances, fireplaces, and fixtures for plumbing and electrical. Insulation, drywall, painting, lighting, flooring, doors, mirrors, countertops, and cabinets. This estimated figure represents the cost of building the home, and is broken down as follows: ExpenseĮverything needed to get started building a home, including building permit fees, water and sewer inspection fees, architecture and engineering plans.Įxcavating for and building the foundation, including cost of concrete and other supporting materials to build retaining walls.įraming of the entire home including roof and trusses, as well as timber, steel and other materials required.Įverything from windows and doors to finishing exterior walls with paint or siding, including weatherproof and cosmetic finish for the roof.Īll the plumbing and electrical except fixtures, as well as heating and cooling. They concluded that builders spent an average of $289,415 to construct a 2,800-square-foot house in 2015. Let’s take a look at the numbers in 2015.įigures from a recent study by the National Association of Homebuilders (NAHB) help answer this question. Since this price range is well above the average price of an existing home, consumers seeking a newly constructed home often ask whether it would be cheaper to just build a house. Department of Housing & Urban Development. The average sales price of a newly constructed house in January 2016 was 494,000, according to the U.S. The Fine Print Costs of Building a House.
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