Building a new home is an exciting and complex experience. You have the land and a house plan ready to go, but how do you know how much it's all going to cost you? Use the guide below to break down the component pieces of the process and get started!
Talk to local builders
The costs of building a new home vary, depending upon region, the type of land, the style and materials used. Local labor rates, weather and availability of materials will all affect price, as well as how many stories the house has. Begin by calling local contractors and asking them their price per square foot. You can use the average price as a starting point to begin your estimate.
If there are homes in your area similar to the style and size you're interested in, contact the builders involved for pricing. Make sure to find out exactly what is included in the price. Many builders will also provide a list of all materials used in the estimate. (Read: How to Choose a Builder You Can Trust)
Contractors
If you decide to act as general contractor for your home, you will save a lot of money, but will have to be responsible for hiring, managing and paying all the various contractors for the build. Hiring a general contractor who will take care of everything for you is convenient, but you will have to pay for his or her services as well. Whichever route you choose, estimates from specialists such as electricians, carpenters, roofers, masons and plumbers will need to be gathered and added to the budget. The costs estimated by these subcontractors may not include all the materials they will be working with, so be sure to include those as well. Consider community bulletin boards like Angie's list http://www.angieslist.com for recommendations and be sure to check with the Better Business Bureau as well. (Read: Finding a Building Contractor)
How big?
More than any other aspect of your project, the square footage of your proposed home is what will affect the cost of building it, so if you discover early on that the price is higher than expected, begin with reducing the footprint itself, rather than trying to cut costs on materials. Due to the foundation, your home's ground floor will cost more than the other floors. You can actually save money by building tall: a multi-story house can net you the same amount of living area, but the roof and foundation will be smaller. Plumbing and ventilation are also less expensive in multi-story homes.
The lay of the land
Your costs of your project could increase considerably depending on your building site. If you need to remove trees, blast through rock or deal with water issues, you will have to estimate those costs as well. Making sure that the site has proper drainage will make all the difference to your foundation (especially if you're planning a basement), so be sure to consider run-off water before you begin.
Other costs
How bathrooms and the kitchen are finished and what goes into them, such as basins, tubs, floor coverings, cabinets and appliances will make a considerable difference in cost.
Be sure to include a buffer to cover cost overruns due to weather delays, work slowdowns, subcontractor overspending, transportation of materials and even inflation. Remember too that every change you make to the original plan is going to affect cost, so be certain of what you want before you start. And don't forget the costs of insurance, building permits, architectural fees, legal work and financing fees to come up with the total expense of the project.
Though it may seem daunting at first to figure out how much your dream home will actually cost to build, conquering the estimate is the first step to making your blueprint dream the place you come home to every night. Now start your calculators!