If you are wanting to build a home, you may be wondering how much this kind of project costs on average. This is a good thing to know as it gives you a price baseline to think of when you start to create your budget for this project.
Building a home is no joke, and you want to be fully prepared for what might come up. This includes all of the necessary expenses as well as things that could pop up unexpectedly.
To find out how much it costs to construct a house from the ground up on average, keep reading for more information.
Table of Contents
How Much Does it Cost to Build a New Home?
The average cost to build a new home is around $119,000 and $449,000, though this varies a lot. The most common price range is around $284,000, though this is different for everyone and even varieties by location and time period that you build.
There are a lot of different factors that can affect how much you pay to construct a new house entirely from scratch. This is a process that involves a lot of different steps, so it can quickly add up before you know it.
Generally, if you are planning on having a new home built, you should plan on having a budget to accommodate these average costs. This way, you will be prepared for how much it will ultimately cost to construct your dream home.
Keep in mind that there are many things that can affect this price and either make it higher or lower. Things such as where you live, the time of year, the materials, contractor, and the size of your home.
These are just a few things that could affect the price that you will need to pay to build a home from the ground up.
Buying The Lot
The average cost of purchasing a lot is $76,500, though many homeowners can expect to pay as much as $90,000. This all depends on the location of course, as in-demand locations will be far more expensive.
A lot in a more out-of-the-way location that is less desirable could be as little as $3,000, depending on where you live. Though this could also mean that there aren’t any utility resources to tap into.
You will want to be very careful when looking at lots and look at the big picture when doing so. You don’t want to jump into this decision as this will affect the entire building process.
You want to find a lot that is the perfect fit for you and the house that you want to build.
Hiring The Contractor
Contractors typically charge around $85 per soiree foot of the house, though some charge as much as $100 to $150. This depends on the location, the current demand for contractors, and how specialized they are.
You should exp[ect to pay more for an experienced contractor as this ensures a high-quality job will be done. You should also pick a contractor that has a history of constructing houses similar to what you want.
You do not want to try to cut costs here as you need to hire someone reputable. You could end up seriously regretting it if you try to pinch pennies by hiring a cheaper contractor.
Keep in mind that a contractor will also be the one to draw up the house plans, give you a timeline, and create an estimate. They will also be responsible for the crew and enforcing working standards throughout the project.
Starting The Work
It can cost around $150 to $400 per square foot to build a new house. This factors in many expenses, including the labor involved and the materials being used.
The kinds of materials you buy will affect this price, though you don’t want to cut too many corners. You want to buy good quality materials to create a high-quality home that is built to last.
This price will vary according to any features you want to be added to the home. This can include wallpaper, wood floors, tiling, and other special features that cost more per square foot.
Are Home Building Estimates Always Accurate?
Home estimates are just that, estimates. Though they do tend to be accurate, they are still estimates and can change throughout the building process.
There are many things that can happen to affect how much your home costs to build. This could include natural disasters, human error, material price shifts, damaged materials, and errors in the plans.
There are all kinds of issues that you could run into that might mess with your original estimate. But this goes both ways, so you might even end up paying less depending on the circumstances.
Maybe the price of materials went down, or the house was able to be built faster than originally planned. These things can affect the estimate positively and result in you having to pay less.
You will just want to keep in mind that estimates can change and have a budget that is prepared in case this does happen.
What Is The Average Cost for Building a New Home?
The average cost of building a new home falls around $119,000 and $449,000, depending on the home. This can vary quite a bit, so your budget should be ready to accommodate any changes to these numbers.
Building a house is an extensive project that is going to cost a decent amount of money. You can change some of these prices to get a lower estimate by building a smaller home on a cheaper lot.
Though there are things that you cannot control about the price of building a home. Things like natural disasters, the prices in your area, and human error.
All you can do is be prepared for any changes to your estimate and make sure you get a good loan. Many loans will even have a plan in place in case your home goes above its original estimate.
These are all things that can help you with this process and make it more budget-friendly, while still creating amazing results.
