Between the years 2010 and 2019, around 6.8 million homes were built in the United States. This number includes 1.5 million custom homes starts, 300,000 single-family built-for-rent starts, and 827,000 townhouses starts.
If you plan to build a custom home, you have some specifications and features that you have dreamed of owning. The next thing is to know how much a custom home cost so that you can understand how to plan for it.
Having a house built to your specifications requires a lot of patience, decision making, and active participation. But before you rush out to the bank, there are a lot of things that you need to consider so that you can give your home that personal touch:
Here are a few things that you need to know.
Affordability
According to the National Association of Home Builders, the average cost of building a single-family house is around $237,760. This cost will vary according to the square footage, materials used to build, finish, and region.
There is a lot of difference between building a custom home and buying a production build where the developers have already planned the floor plans.
However, whichever home you choose, you should find the right contractor who will ensure that you have your dream home at the agreed time.
Building a custom house means that you will get the exact features that you have always dreamed of. This includes features such as custom cabinetry, hardwood or tile floors, marble or granite countertops, and huge Jacuzzi tub,
If your budget allows you to pay cash to build your home, then you are lucky enough. There are several other costs that you have to consider, like homeowner’s insurance, labor, taxes, and additional ongoing fees.
If cash is not an option, you can also consider a mortgage or work with a real estate managers like Holland Homes to help you get your dream home.
Therefore, there is no one-size-fits-all answer, but once you consider all that it takes to build the kind of house you want, you can be sure if you can afford it.
Buy the Property
Once you are sure that you can afford to build your home, the next step is to buy the property where you will build the house. You should find the right real estate or buyer agents who can help you find the right land at a good deal.
A good agent will know where to find the right land for a residential home in an area that will make you home more valuable with time. This is precisely what you want. Remember, the cost will vary according to the region.
For example, it will cost you at least $161.53 to build a single-family home in the Northeast, $139.48 in the West region, $106.79 in the Midwest, and $100.01 in the South region. This is according to the U.S Census Bureau Survey.
Therefore, having a realtor who knows your local area or the area you wish to build in will mitigate any risks.
Make the Plans
After you have found the perfect plot of land, you are ready to start making plans to build your home. In every phase of construction, you will have to make several choices that will affect the cost and the final outlook of your home.
You should come up with a well laid out and detailed plan that also portrays the vision of the home you want. Your plan should include not only the number of rooms that you want but also the finishes.
To help you plan your budget and prepare, here are some things you should consider:
1. Site Work
There are several things, such as building plans, inspections, and permits that you have to pay for before the actual construction. It would be best to prepare to handle fees for sewer and water inspections, which might be relatively high.
To cut costs, you should ensure that you hire an architect who can work with your builder to develop a plan. This way, your developer will ensure that the architect draws a plan that is not super expensive or ridiculous.
Remember, you will also have to pay the government fees for things like water treatment, parks, and roads. Therefore, your budget should include such fees.
2. Foundation
This is where you will break ground on your home. A good and stable house needs a good foundation. If you are planning to have a basement, you should prepare to cough out more because there are more square feet to cover.
The cost of laying the foundation will depend on the type of land. A rocky land, for example, will cost more. Since digging up a foundation requires special material, labor, and equipment, you should allocate enough money to it.
3. Framing
This is where your house will start to take shape. It is one of the highest costs in your budget. Putting up the skeleton of your home up to the roofing is not easy.
You will also have to consider the cost of laying the boards, steel, or metal materials that might drive up the cost.
Depending on the materials you use or the house’s design, you should set aside a considerable amount of money for the framing. The type of roofing you choose will also affect your budget.
While there are several roofing materials that you can consider, they all have pros and cons. Talk to an expert roofer in your area to know the best type of roof that you should get.
4. Finishes
Both the exterior and interior finishes of a house are quite costly. The exterior finishes cover the entire perimeter of your home, and this requires a lot of materials. Exterior finishes include installing opening like windows, doorways, and the garage.
It would help if you also accounted for finishes on the roof that will ensure that the outside weather does not get inside your house. Do not forget to budget for installing major systems like electricity, HVAC, and plumbing.
Remember, these costs do not include fixtures like lights, toilets, and sinks.
The cost of the interior finishes of your house will depend on your taste and style. This is where your creativity comes in. Everyone wants their home to tell a story or depict who they are because that is where they will make most of their memories.
Whether you want a simple house or add some lavish features like hardwood floors, stainless steel, or granite countertops, ensure that you get a breakdown of the interior finishes so that you can budget for it.
Remember, the bathrooms and kitchens are some of the most expensive rooms to build because of the finishes that they need. If you are working with a tight budget, you may want to consider if you need that extra third or fourth bathroom.
Other things that you should budget for includes:
- Lighting fixtures
- Plumbing fixtures
- Flooring
- Trims and Mirrors
- Insulation
- Drywall Installation
- Fireplace
- Cabinets and countertops
- Appliances
- Painting
Talk to your developer and interior designer to ensure that you have budgets for your interior finishes or design as needed.
5. Landscaping
Building contractors do very little when it comes to landscaping. It might take you a few years and maybe even thousands of dollars to get the yard that you have always dreamed of.
The significant advantage of building your home is that you will be able to get the right trees, grass that you want.
Talk to a landscaping contractor and get the average cost of adding a complete landscape, including the driveway cost, so that you can also budget for the same.
6. Other Costs
There are several other costs that you should not forget to budget for: Try to ensure that you consider:
- Energy efficiency
- Additional features like the deck or porch
- Maintenance costs
- Miscellaneous costs
Remember, any changes you make to the original design of the house or the materials you use will affect and probably add up to your home’s total cost.
Keep in mind that the cash flow or financing is very important. Talk to your contractor to know how much money you should pay upfront and come up with a payment plan for the rest of the cost.
Advantages of Building a House
Building a house is a huge undertaking. You will need to work with experienced experts who can work with your budget and ensure that you have the house of your dreams. Some of the advantages of building a house include:
- Having new pipes
- Having new heating and cooling systems
- Designing your home with your exact specifications
This means you will not spend on renovations, costly repairs, and more. You will be working with a blank slate, and this makes it worth every penny.
Ready for Your Custom Home Cost?
Everyone’s dream is unique, and the cost of building your house is up to you. Save yourself a lot of headaches by working within your budget and with the right experts.
To get your custom home cost right, take your time and go through every step of the construction from the permits, to the foundation, to the finishes, and landscaping so that you can budget for everything.
Check out our other posts for more home and décor tips.
