Sponsored byThe main costs to build a houseThere are a few main costs involved in the construction of a home, says Andy Stauffer, owner and president of Stauffer and Sons Construction. The to build on averages. That said, the average home is built on only 0.2 acres, so unless you want a lot of space in a highly desired neighborhood, that alone won't break the bank. Excavation and foundation work are by far the most variable cost when building a home, according to Morgan Franklin of Kentucky's LexHomeHub. In other words, you never know what you’re going to find until you start digging—be it bad soil or massive boulders. If excavation and foundation work goes relatively smoothly, the average cost for both is $33,447.
Average Costs Of Building A House. The average cost to build a home in Australia is growing in most states year on year. According to Housing Industry Association (HIA) report Window into Housing 2018, the average cost to build a home in 2007 excluding land costs was $232,183 and in 2017 was $306,886 which equates to a 32% change over the last decade. Thus the cheapest we could likely build a house for would be $165,000. Other Costs You Need To Take Into Account When Building A Home. Soil – The above cost was based on a building site with excellent soil conditions (they call this M classification). If the soil is rocky, clay-like, or has any other problems then that is how the site costs can get upwards of the $20,000 mark.
You'll need a building permit, of course—it averages $908 nationally. Other costs you'll incur before you hammer even one nail include land inspections ($4,191) and an impact fee, levied by the government to cover the costs a new home will incur on public services like electricity and waste removal ($1,742).Advantages of building a houseThat's a fair question—particularly since you can buy an existing single-family house for a median price of, or $66,415 less than building one.
You will also save yourself the headaches that inevitably come with construction. Building a house does have its advantages. Everything from pipes to the heating and cooling systems will be new. That means no costly repairs in the near future—and so a newly built home could end up costing less in the long run.
Plus, of course, you get to design your home to your exact specifications. If you have very clear ideas of how you want your home to look, this blank slate could be worth every penny. (That said, designing your dream home from scratch has its challenges, too, so make sure to not.) Is it cheaper to buy or build a house?Does it cost less per square foot to buy or build your own house? It's smart to weigh the pros and cons of new versus old construction—and the price you pay for construction costs versus an existing home is only the beginning. Here we lay out everything a home buyer needs to know about buying an existing home compared with building one from scratch or having it built by a general contractor.There are actually two things to consider: the upfront costs of buying verses building, and the ongoing maintenance costs. The upfront costsIf you buy an existing home: According to the latest figures, the median cost of buying an existing single-family house is $223,000.
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For the average 1,500-square-foot home built before the 1960s, that comes to about $148 per square foot. That said, the exact price can vary widely based on where you live.
(Go to to see the price per square foot in your area.)If you build a new home: Building a house will set you back an average of $289,415. That's $66,415 more than the cost of an existing home!Still, you'll get a lot more for your money. For one, new construction is usually more spacious, with a median size of 2,467 square feet—so the cost to build per square foot, $103, is actually lower than that of existing homes.Another advantage of having a builder construct a custom home is you pay for only what you want, whereas an existing home may have interior and exterior features (e.g., a finished basement or a basketball court) you'll pay a premium for, even if you don't want them. But if an older house happens to be your dream home the way it is, that may be the more bargain-friendly route.
MaintenanceIf you buy an existing home: Older homes have more wear and tear, which means certain things may need more maintenance—or, if they're on their last legs, replacement, points out Michael Schaffer, a broker associate at Colorado's LIV Sotheby’s International Realty.Naturally, the cost of this upkeep isn't cheap, so make sure you know the age of the main items. For example, the average furnace is expected to last 20 years and will cost $4,000 to replace. The typical HVAC system lasts 15 years and costs $5,000 and more to replace. Another biggie is the roof: The average shingled roof holds up for about 25 years. If you need to replace roofing, you're looking at a bill of at least $5,000. Plumbing and septic systems can go for some time without a problem, but when something goes wrong, it's an emergency.With an existing home, unless you step into a high-end home with everything you want, you may want to start changing things, even if they are still functional. Home improvement shows make it seem simple to change countertops and flooring, or even overhaul floor plans.
When you're paying for material and labor costs for plumbing and drywall work, you may start to think your total cost might have been less paying a builder for a custom home in the first place.If you build a new home: Considerably less upkeep is one of the primary reasons to build your own single-family home, because everything from major appliances to the HVAC system is new and under warranty. In fact, sometimes the entire home is protected for up to 10 years because a builder generally offers a construction warranty 'for any problems that arise,' says Schaffer. Your interior and exterior maintenance outlay for a decade is potentially zero dollars. That can make up for some home construction costs per square foot that you paid by opting for a custom home. LandscapingIf you buy an existing home: A major perk of older homes is mature with large trees and established plantings. That may not seem like a big deal until you consider that the U.S. Forest Service estimates that strategically placed mature trees can add tens of thousands of dollars to a property's value and save up to 56% on annual air-conditioning costs.If you build a new home: Builders often do little or no landscaping to new construction.
It may take thousands of dollars—and many years—to get the yard you want. For instance, one 6- to 7-foot-tall red maple will cost about $120 (if you plant it yourself), which will then grow 2 to 3 feet a year. According to HomeAdvisor, the average cost of adding complete landscaping is $3,219. Energy efficiencyIf you buy an existing home: The latest U.S. Census found the median age of American houses to be 36 years. Older construction means dated windows and appliances—dollars flying out the window on wasted energy expense.If you build your own home: Recent construction almost always beats older homes in energy efficiency, says Kyle Alfriend of the Alfriend Real Estate Group Re/Max, in Ohio.
Homes built after 2000 consume on average 21% less energy for heating than older homes, mainly because of their increased efficiency of heating equipment and building materials. This translates into reduced energy expense every month, even with the higher square footage in many newer homes. AppreciationIf you buy an existing home: The nice thing about old homes is that there's context to your purchase: You can research the home's previous sale prices, as well as prices of similar homes in the area (known as comparables, or ) to get a feel for whether prices are rising or falling in your area. If the prices for your home and others in the area have been steadily rising, odds are decent that the trend will continue, which bodes well for you if you decide to sell later on.If you build a new home: New house construction, particularly in up-and-coming neighborhoods, can be more of a gamble. Without a proven track record of lots of comps, there just aren't enough data points to really know what could happen down the line.
This is also true for all of the latest amenities you might ask the builder to install in your home (think self-cleaning toilets).' Some trends die quickly, dating the home, and can negate any appreciation,' says Alfriend.
So when in doubt, try to steer clear of anything that screams it's a passing fad.That said, if you pay reasonable home costs when you build a home, and your local community is thriving, you should be able to get a good sales price for your home down the line.
Worker shows house design plans iStock.com/ALotOfPeopleIn your white picket fence daydreams, what does the look like? Maybe it’s a colonial-style home like the one you grew up in, or perhaps it’s a modern design with chrome and silver finishes in every room.
It might have three bedrooms with an office to boot, or be a sprawling mega-mansion fit for Hollywood’s elite.If you’re fortunate, you might be able to find the house you’re looking for in a property search, either online or with a realtor. In other cases, you might decide that building your dream home from scratch is the best move.
Though it can be much more time-intensive than purchasing an existing home, you also have the chance to choose everything according to your tastes, from the number of bedrooms to the type of fixtures in the bathroom and on the cabinets.According to, around 1 million homeowners were expected to build their own houses in 2016. The average size of a new home built in 2015 was 2,467 square feet, U.S.
Census numbers report, though the cost per square foot varied depending on the source. Realtor.com found the average to be around $103 per square foot, while a separate study from reported the average cost at $150 per square foot. Overall, that range equals an average new home cost between $290,000 and $305,000.Of course, that’s just the average, and building your own home is one of the most variable expenses there is. Every decision you make affects the bottom line you’ll pay, so it’s important to know just how much home prices can change.
HomeAdvisor reports that the average range was from $178,010 to $466,493 among HomeAdvisor members, with outliers as low as $23,000 and as high as $826,000. What’s behind those cost variables? We did some digging to find out.To build a house, make a budget.
Contractor at a job site iStock.com/dpproductionsAs with every expense, especially the largest ones, it’s vital to have a working budget so you know how much you can afford. Starting with that number — and sticking to it — will help you determine the property you purchase, how large your house will be, and even which furniture you ultimately choose to fill your new residence.No matter the size of the dream home you’re building, certain costs will likely stay the same.
You can likely expect the shell of your house — which includes the walls, windows, doors, and roofing — to account for a third of your overall construction budget,. Interior finishes like cabinets, flooring, and countertops will probably eat up another third of your budget. Mechanical costs like hiring a plumber and electrician will likely be another 13% of your overall costs.When building a home from the foundation up, we’re assuming that you’ll use professional contractors and architects to get the job done. That baselines assures that you follow the laws and permits in your area, as well as the codes necessary to ensure a safe and long-lasting home. However, you can choose to save money even at this step. Points out that you can work with a developer and choose a home design already in their repertoire, which can save up to 15% of your costs versus paying an architect to create a completely custom home.But that’s only the beginning of the cost variations.
Here are other variables to consider.1. Land and excavation. Bulldozer rests at empty lot iStock.com/catherinejonesIf you’re building your home on your own, you’ll need to start with a plot of land. The cost per acre for an empty plot averages about $3,000 nationwide, Realtor.com reports. That itself won’t break the bank.
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However, keep in mind that costs vary immensely depending on your location. If you have your heart set on a premier neighborhood, school district, or city, you might have to pay more for that.The real variable here, however, is the excavation to make the land building-ready. Bad soil, rocky ground, or other unseen issues can drive up the costs for leveling your property and pouring a proper foundation. If everything works out according to plan, you can still around $33,500 for the bulldozers to rip up the ground and lay some concrete.2. Permits, inspections, and fees. Building permit iStock.com/LittleRedDragonGovernment regulations are abundant in real estate, particularly with new construction projects.
In most cases you’ll want an experienced architect or contractor to deal with all the red tape, suggests, but you’ll still be on the hook for paying for the permits, the land assessments, and miscellaneous fees that come along with it.According to the, those regulations can cost about 24% of the overall construction price — an average of $84,671 on homes built in 2016. Regulation fees have always been expensive, but the NAHB points out that they have still increased by almost 30% since 2011, just five years ago. Make sure you get a clear picture of all the associated fees that go along with your new home up front, so you can budget accordingly.As one final important touch, you’ll want to make sure you’re properly insured for the construction. Most contractors will have some type of insurance, but you’ll want to make sure it’s the appropriate level.
You also might want to purchase liability insurance to protect yourself and the progress on your home. Covers the basics you need to know.3. The size and number of stories. Multi-level home iStock.com/ jandrielombardThere’s a reason home values are broken down by overall cost, but also the cost per square foot.
In most cases, the price of your home will grow or shrink based on how much house you actually want. A bigger home will obviously take more time to build — adding extra paychecks for your contractors.
But it also means paying extra for flooring, more for paint, and additional ongoing energy costs to heat and cool a larger space over time.In addition, adding extra stories automatically means a higher price tag, even if the square footage is similar to a ranch-style home down the street. Even basements and attic spaces can cost more to build, though points out that leaving them unfinished (instead of adding drywall or other finishing touches) can save on the initial costs.
You can always go back and finish those spaces later, after you’ve had time to save up some extra money.If you’re building a custom home, keep in mind that odd shapes or obscure designs can set your home apart, but will likely cost more. “For custom builds especially, the more corners a house has, the more it will ultimately cost,” HomeAdvisor experts warn.4. Fixtures, appliances, and furniture. Bathroom fixtures can be expensive iStock.com/hikestersonWhen it comes to outfitting your home, there are always gradation of quality. If you’re set on choosing only the finest granite countertops, marble floors, and high-quality shower heads, you’re going to be paying a pretty penny. At some point, you might need to compromise on certain fixtures in order to meet your budget.
After all, you’ll need to outfit your bathroom with a bathtub and shower, a vanity, and cabinets. Your kitchen will need all new appliances, too.Bathrooms and kitchens are typically the most expensive rooms to remodel, so it shouldn’t be surprising that they’re the most expensive to build in the first place. As, you might want to think twice before adding three bathrooms to your blueprint — perhaps two will do, to help you meet your target bottom line. Just remember that it may be harder to sell in the future, if there are only two bedrooms.5. Ongoing costs. Just how much of your budget will go toward housing costs?
iStock.comOne major financial advantage of building a new home is that the pipes, foundation, and roof will be up to code and brand new. It should be many, many years until you need to invest serious money in repairs or feel the need to undergo any renovation projects.
While you’ll still want to keep an emergency fund for unexpected problems, it’s likely you won’t need to use it.However, there are plenty of other costs associated with a new home that you’ll continue to pay in the years to come. Energy bills and home insurance premiums will be a must, though these bills do tend to be less with new construction. More efficient materials keep energy bills in check, and new homes are a smaller risk to insurance companies in most cases.However, homeowners with newly-constructed homes can in property taxes than if they had bought an older home down the street. It can be difficult to predict the property taxes ahead of time, but it’s important to incorporate an educated estimate in your overall budget for future years. The local assessor’s office will be able to provide an estimate, but you’ll also need to find out if you’ll owe taxes to multiple entities.Follow Nikelle on and More from Money & Career Cheat Sheet:.