Money Talk With Slater

Making Money Across the Board

Monthly archives "November 2019"

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

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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.

 

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

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Once you’ve obtained some land, it’s time to start planning the house you’ve always dreamed of.

Make the Plans

Now, once you’ve discovered that great plot of land, be prepared to make plenty of decisions. In every part of the construction, you’ll make lots of choices that affect the cost to build your home. You’ll need to have a detailed, well-planned vision of the house you desire. And we don’t just mean finishes and the number of rooms. If you don’t have a budget, you’ll end up making lots of change orders.

Change orders are work items that have to be removed or added to the original set of plans. They’ll send your budget over the roof and drive your builder up the wall.

To aid you in preparing for the decisions you’ll have to make at every stage of the home-building process, this article broke down the usual costs to build a house into separate stages, starting with site work and going all the way to landscaping as well as the final sales price. 

Site Work $17,000

After you get the property, you’ll have to pay for site work like permits, inspections, and building plans to get ready for the actual construction. The steepest cost here is fees for sewer and water inspections.

Pro tip: Have your builder and architect create the plan together. Don’t allow an architect who doesn’t know anything about building win you over with nice pictures. Your builder can make sure your architect isn’t creating something that’s silly or really pricey to build.

Foundation $28,000

Foundation work is where the true fun starts. This is when you’ll break ground on your new house. Breaking ground necessitates heavy-duty machinery and skilled operators to make sure the ground is level before laying the foundation of your home. If huge rocks are hiding under your plot of land, excavation costs can go up.