There are many elements to consider in determining the cost of building a home. This article will describe to you the formula for determining the total cost and also highlight ways to save on overall costs.

## Add the Following to Determine the Cost of Building a Home

• Cost of the lot.
• Cost of landscaping.
• Square footage times cost per square foot for basic construction in your area.
• Cost of extras and luxury options.
• Loan Cost plus interest for either a 15 or 30 year mortgage loan.

Determining the Cost of Building a Home by Figuring the Cost per Square Foot
While the cost per square foot can vary considerably the formula above takes out some of the variables. The range of cost per square foot for the entire country from basic homes to luxury homes is between \$70.00 per square foot, and \$390 per square foot. While those numbers are interesting, this information is not very helpful at all in determining how much your home might cost. In order to narrow the variables, the formula used in this article disregards any extras in order to add those later, and merely speaks of the cost of the basic structure, an average kitchen, and average bath. Square footage does not include non living areas such as garages, car ports, unfinished attics, or basements.

This cost for most States is between \$75 and \$85 per square foot. California, Massachusetts, New Jersey, Rhode Island and New York are the most expensive at \$128 and \$120 per square foot. The cost of building a home in Washington, Nevada and Oregon is about \$115 per square foot. Wisconsin, Virginia, New Hampshire, Minnesota Arizona, Colorado, Delaware, Idaho, Illinois, Maine, Montana, New Mexico, Pennsylvania, Utah and Vermont cost per square foot cost is between \$91 and \$105 per square foot.

By Multiplying the average cost per square foot for your state, which unless otherwise stated should be between \$75 and \$85 times the number of square feet.

For example a basic 2000 square foot house in California:

\$128 x 2000 = \$256,000 + lot cost + landscaping + extras + loan costs and interest

Building the same 2000 square foot house in Texas
\$75 x 2000 = \$150,000 + lot cost + landscaping + extras + loan costs and interest.

Extras not included in this estimate include stonework, and other unusual materials, electronic extras, deluxe custom cabinetry, garages, pools, expensive hot tubs and other extra plumbing fixtures.

Determining the Cost of Building a Home: Ways to Save
• Save on purchase price and utilities with a smaller house
• Save on interest with a 15 year loan
• Clean up your credit to get a better interest rate
• Use standard cabinets and cabinetry
• Select typical floor coverings, and other surfaces
• Keep bathrooms near the kitchen and each other and upstairs baths directly over downstairs plumbing.
• Keep plumbing near exterior walls.
• Use standard widths for the home, like 18, 24, and 32.
• For savings and versatility create a great room rather than a separate kitchen, dining room and living room.

Determining the Cost of Building a Home: The Wrong Way to Save
Choosing to save by scrimping on supporting structural building materials is not a good idea, even if building codes would allow it. One example of this that is allowed is building on a slab rather than a foundation. This is a poor idea in most areas, though it may work in others. Damp, flood prone or insect and termite prone regions make this an especially bad choice. If you must build on a slab, keep plumbing fixtures against exterior walls.

Another bad choice is making rooms too small, especially the kitchen and bedrooms. Unless you do not plan to cook at all the kitchen is important. Also study kitchen plans to create an efficient kitchen design, and be sure to allow room for more than one cook in the kitchen without people bumping into each other. For more information on home construction download our 98 page book available on this site.

Building a home is one of the most important decisions in life. Sacrificing an extra that is very important to you is not a great way to save. If it is important to you then it is a necessity, even if someone else might call it a luxury. Take time and decide what you really want, and which money saving suggestions you wish to take, and which ones would compromise your dreams. Do not sacrifice what is truly important to you in determining the cost of building a home.