Money Talk With Slater

Making Money Across the Board

How Much Money Does It Cost to Build a House (Part III)?

Building the interior of a home is usually the most expensive part of building a house.

Framing: $40,000

Brace yourself. The frame of your home will be one of the biggest costs in your home-building budget. This is when your home will begin to take shape.

Exterior Finishes: $30,000

The exterior wall is a pricey item ($15,000) since it covers the perimeter of your home, and that necessitates plenty of material. Also, it supports the structure and roof of the house and stops outside weather from coming inside, ensuring that when the weather outside is bad, your home will be okay.

Major Systems Installation: $30,000

Installing major systems in your home will cost about as much as the exterior finishes. Major systems are plumbing ($11,000), HVAC ($11,000), and electricity ($10,000). You could cut the budget here, but we’re assuming you’d like to not have outdoor plumbing.

Interior Finishes: $60,000

In addition to the sales price, the interior is typically the most expensive part of building a home. 

Miscellaneous Construction Costs: $5,000

Above and beyond the “buffer” costs built into every stage, a large number of home-building projects require $5,000 for a separate, miscellaneous category that goes with the complete construction cost.

Sales Price: $200,000

As the final and heaviest brick of your home-building budget, you’ll want to plan for the sales price. Had you bought an existing home, your sales price would be in the hands of the seller, their real estate agent and an appraiser. But when you build from the ground up, the sales price is decided by your builder and several vendors.

Is It Cheaper to Build or Buy a Home?

After breaking down the cost to build a home, you may wonder if it’s most effective to purchase an existing one. The factors that affect housing costs make it hard to give a one-size-fits-all answer. Everyone’s dream house is unique and so are the costs.

 

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