What is the average cost to build a custom home?

 

So, what is the average cost to build a custom home?

Some estimate between $80 and $250 per square foot, but even with that wide of a range, it is not an answer we are comfortable with. Why is this such a difficult question that nobody can agree?

This is one of the most frequently asked questions and there are many estimations and formulas out there if you search the web. When it comes down to it, the question is like asking how much does it cost for a new car, boat, or motorcycle – except there are even more factors to consider.

Here are a few factors that are helpful if you are in the beginning stages of considering a custom home build:

  • Hidden Costs – Different communities have various fees for a building permit, connection/impact or capacity fees, and other miscellaneous defined fees. See the tool created by the HBA of Greater Springfield at lookB4Ubuild.com for fees in the Greater Springfield Area. Did you know it is estimated that regulations account for approximately 24.3% of the final price of a new single-family home built for sale?
  • Material Cost – The cost of basic materials can fluctuate and are typically on the rise. This factor alone will make estimates become outdated quickly.
  • Size – Obviously, the larger the home (more square-footage) the more the home tends to cost to build. But this is not always true due to other factors below.
  • Stories – Additional levels, such as basements and attic spaces, can increase the building costs. If these areas are finished, instead of roughed in, the cost can increase even more.
  • Shape – Custom homes often have more corners, creating a larger perimeter. These details create more work and require more material, which ultimately increases cost.
  • Details – The quality and style of your fixtures and finishings affect the cost. What type of flooring, countertops, or even roof will either raise or lower your final cost. Note: While building a home, be sure to request a change order anytime you make a change.
  • Appliances – The amount, size and manufacturer can impact the final cost of your home. Going even deeper, the wiring for your appliances and electronics will change the price tag.
  • Extras – Landscaping, pool, shed, type of driveway, deck, outdoor living area, just to name a few, will affect your final home price.

These are only a few factors that you need to consider. The best solutions is to talk to a builder and get an estimate if you are seriously considering building a custom home. Come see us at the HBA Parade of Homes June 17-19 & 24-26. Check our blog and Facebook to follow the progress of our HBA Parade Home.

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