One of the things that need thorough thinking is whether you should buy your own house or just rent. If you have decided to own one, surely, the question that comes to your mind is "how much does it cost to build a house?" You would also want to know the breakdown of the costs that you need to pay.
In 2017, building a house has an average cost of $428,000. That amount is enough to get you a single house that is 2,800 square-foot. It shows that per-square-foot is about $153. Take note that the amount that you will shell out will be based on changing factors. The size, location, materials, and labor all make it impossible to pin down the exact price to pay.
Read on to find out what makes up the total cost that you need to pay.
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Site work: $16,000
To prepare for construction, you will need to pay for permits, inspections, and building plans. Water and sewer inspections amount to $5,000, and permit fees are worth $4,000. Three thousand dollars will go to your engineer and architect. Your next $2,000 goes to impact fee, and the last $2,000 is just a buffer.
Framing: 41,000
One of the most expensive aspects in house building is the framing because it is the skeleton of your house. You will need $36,000 worth of lumber (including roof) and $4,000 for the trusses. To protect and cover the frame and trusses, you will need $1,000 for sheathing.
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Foundation: $26,000
Besides needing material and labor, foundation work usually requires specialized equipment, that is why it would cost you around $25,000. The $1,000 is for extra just in case you need it.
Exterior finishes: $33,000
The exterior wall worth $15,000 will cover the perimeter of your house. It will support the roof and the structure of the house. It is pricey because it requires a lot of materials to make sure that your house is intact in an event that the weather outside is harsh.
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Major systems installation: $33,000
Much like the exterior finishes, major systems cost just as expensive. HVAC and plumbing cost $11,000 each, while the electricity costs $10,000. Again, the $1,000 is for any extra cost that you might need.
Interior Finishes: $68,000
Among all the steps in house building, the interior is usually the most expensive of all. This step includes everything you need to make your house livable. The cabinets, countertops, doors, mirrors, flooring, insulation, appliances, and plumbing fixtures are in this part. Add the lighting, fireplace, and drywall installation to the list and you are good to go.
Miscellaneous construction costs: $4,000
You will be needing an extra $4,000 besides all the extras that you have added in the other parts of the house building. This amount will go toward the overall construction cost.
Sales price: $190,000
As determined by your builder and a bunch of vendors, the sales price would usually cost about $190,000. The most expensive finished lot costs about $92,000, while the profit of your builder and vendor would cost $46,000.
Overhead and general expenses ($22,000), sales commission ($17,000), financing ($8,000), and marketing ($5,000) make up all the other budget items in this area.
Now that you have reached this part, you can now answer anyone that asks you "how much does it cost to build a house?" Then, give them a detailed explanation of the breakdown of all the costs that they have to pay for.
