One of the most often asked questions when considering your home build purchase options is, “How much does it cost?”
While this is a legitimate question for the homeowner, there are many factors to consider in the pricing of custom home builds.
There truly is not a one-price-fits-all when it comes to building your home.
Below we have included some factors that will determine your custom home build price. No custom home build will be exactly alike, contractor availability and pricing may differ, the current material pricing is always fluctuating, and personal design choices, finishes, and orders will all affect your overall pricing.
Size of the Home: Price Per Square Foot.
When building your custom home size will matter. The basic home build pricing is based on the cost of materials needed per square foot of the home. The cost will rise as you make personal design choices beyond the basic plan your builder begins with.
There are elements such as slab, framing, roofing, most electrical, drywall, interior trim labor, paint, etc. that are based specifically on the square footage of your home that will affect your overall cost.
When choosing your home design, consider the long-term usage of your home, functionality, and the overall need for square footage. Your long-term needs, function and usage of your square footage should be a priority when deciding how much of an investment in your home budget will be involved in your square footage vs elaborate design elements. It will be much easier and more budget friendly to change trim and finishes over the years, rather than adding on to an existing homes square footage.
The design of the home build (structure/shape and layout) is another factor in your overall cost.
For example, a house with many corners, offsets, and complicated roof lines will cost more than a simpler design. The more complicated the design the more often there are wasted materials that get thrown away.
Another factor that can affect your overall cost is wasted space. Wasted space (an area larger than it needs to be, or that ends up being unused) can be costly. For that extra floor space in front of your bathroom sink, extra-long hallways, etc. you may be cutting into your overall budget unnecessarily.
Often homeowners will want a certain design element without realizing that something that seems simple can dramatically affect the cost. Make sure to ask your designer and builder what is affecting your overall home build budget based on the home design elements. Be clear about what is of most importance to you in your home build.
When building your custom home, you have more control over the costs than an existing home. With the right designer, you can discuss options that will add more value to your home while identifying unwanted costs through value engineering. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality.
Finishes and Features
The benefit of building your own home is that you can choose finishes and features based on your tastes and needs. However, this can affect the overall cost of the home and is one reason that a home build pricing fluctuates.
For example, countertops can cost $15/sq foot to over $200/sq foot based just on your material choice alone. To maximize your budget for your home build, you will want to select materials based on availability, quality, and efficiency by shopping around and being flexible about what you really need vs what is a luxury. You don’t want to sacrifice all your extra touches, but it is helpful to have a clear picture of what is most important to you going into your home build.
Operational efficiency is the ability to reduce waste of time, effort, and materials as much as possible, while still producing a high-quality service or product.
This means you want to have the most efficient team possible to make sure that they do their best to build your home in a timely and efficient manner.
A builder who takes the time upfront to solve design problems on paper rather than relying on field personnel when the meter is running will save more money than you can imagine.
When efficiency is high you save money on labor costs, material costs, and availability. Efficiency will affect the overall cost of your home build, so make sure that this is a discussion you have with your builder and that you follow through on their reputation in the area.
There is no one set price for building a custom home. These four factors can play a huge part in your overall budget. It is important to have your goals in mind when speaking with your custom home design professionals. With the right team ready to execute the dream of your custom home build, and clear communications, you can build the perfect home that you will be happy with for many years to come.