Here’s a really stupid question: Is there a rule of thumb for how much per square foot a house typically costs to build?
I know, I know, I can hear it now–of course a house could either be a shack or the Taj Mahal, so it’s all relative. But surely there’s some number that can be adjusted plus-or-minus some percent based on finishes, different markets, etc.
I’d be interested in hearing your views on what that average number is. Thanks.
it’s going to vary a great deal on where, specifically, you want to build this house. Surely, as someone who allegedly makes $600/hour, you can solicit bids from general contractors.
I’ve never said I make $600 an hour (because I don’t). I have said that I bill out at more than that (because I do). Some people have a hard time understanding the difference.
I fully acknowledged in the OP that it’s a dumb question, bordering on ridiculous. I was just trying to open the topic–hopefully someone has just gone through a home build (or the planning for one) and can shed some light on how they thought about the costs upfront before they got into the nitty-gritty.
Thanks for your invaluable assistance.
It varies a lot by area, but I would say $100 to $150 per square foot is probably a good rough ballpark estimate, plus the cost of the land, which in some areas is substantial.
A smaller home may cost more than the average on a per square foot basis, and a more complex design will cost more than a simpler design of the same size. I’m assuming you are aware of all of these things and just want a rough ballpark number though.
ETA: It’s been a while since I’ve looked into this sort of thing, hopefully my numbers aren’t too out of date.
I seem to recall that when I first got homeowners insurance, the insurance company had some calculation for the typical construction cost per square foot in my area in order to estimate the replacement value of my house. Maybe you could talk to your insurance company to get the rates for your neck of the woods.
This. But up it a bit as things like foundations don’t burn.
You can always this use this rule of thumb.
The first 90% of the job will require 90% of the money budgeted.
The last 10% of the job will require another 90% of the total budget.
I’d say that the range skewed up by about $25 to $125-$175, $200 not being uncommon. However I think this more reflects the trend towards more expensive finishes on new builds, so you could probably find $100/sq ft if you don’t mind Formica countertops and hollow core doors.
Many things can affect the price, though not just finishing materials or market. Will there be a basement, what’s the layout (closed or open concept), where will the bathrooms be located and how many will there be, will the house be pre-wired for Ethernet, etc.
Another factor that contractors take into consideration is whether or not they’ve worked with the client before/how much of a pain in the ass they look like they’ll be. There are far too many sleazy contractors, but there are more than enough bad clients. They slow you down with excessive demands or indeciciveness.
It’s $/SqFt is not so much a number for the typical cost of a home anywhere, it’s the way to distinquish the varying costs in different areas, and a way to cost out a house before building. Also, consider that the more you spend over the typical cost in an area for building a house, the less value you get. It’s simply becomes a way for contractors to profit. So if $100 SqFt is typical in your area, $110/SqFt might get you 5% more value, if you’re lucky, but may be most of the profit the contractor makes from the house. So a 1000 SqFt house doesn’t need $10,000 more dollars to add a few recessed light fixtures and fancy faucets. Sorry to contractors if you’re offended, but you know it’s how the game works.
Why in the world would any contractor be offended because you over-built?
I’m building a house now. There are a lot of variables. The $ psf is a ok rule of thumb, but adding certain rooms like a bathroom are more expensive. As in, $120 psf for a 3000 sq ft 3 bedroom 2 bath is probably pretty nice, versus $120 psf for a 4000 sq ft 5 bedroom 4 bath is very basic.
A tract home is cheapest because it’s basically one design, they are skilled at cutting corners, and economies of scale. A contractor that builds off of a tested design that is essentially a rectangle will be the next level up. As soon as you start adding some “interest” to the house such as a room that sticks out 3 feet, a big entranceway, higher than normal ceilings, ceilings that are higher in some rooms than others, then it is another level of expense because it takes more labor and material to frame it out. Go with a custom design, which often has the previously mentioned interest, then the cost goes up again.
Biggest expense comes from the kitchen and bathroom. Nice fridge is $2k, but a built in fridge is $6-10k. You want a built in microwave, well it’s $1500 by the time its framed and everything else versus $200 from Best Buy that’s comperable but will sit on your counter top.
Then does your contractor have a “guaranteed price with a spec build” versus pay as you go? If it’s guaranteed, then the contractor probably requires that he does all the outsourcing, you buy appliances from one specific dealer (that also charges you for installation) and other conditions in return for “one throat to choke.”
Let’s just say that
As Rick said, budget up front for it costing a lot more than the budget.
They’d be offended because TriPolar believes they’re just gouging people who pay for premium.
I was going to try to rebut the point, but it’s probably not worthwhile. All I’ll say is that anyone who knows the difference between level 3 and level 5 drywall work knows just how wrong he is.
No, I believe drywall contractors will charge for level 5 and deliver level 3 on occasion. But much more often, a general contractor will charge for level 5 and pay the drywall contractor to install level 3.
But that isn’t what really what I was referring to anyway. It’s typical of contractors to install high end fixtures that might add $1000 to the cost of materials, and add $5000 to the bill for something that does not increase labor costs at all.
But as usual, someone will be offended if I point these things out, because of course, contractors are always honest and competent and anyone who complains about them has no idea what he is talking about.
To answer the preceeding post in a manner I believe the OP would thoroughly endorse: the contractor submits a bid and job specs, the home owner is completely within his/her rights to turn it down or renegotiate.
Yes it is caveat emptor. I’m pointing out some of the caveats. And I would add that after accepting a bid and job specs, a wise emptor will pay professionals to assess the quality of the completed work before making final payment.
As long as the contract stipulates that final payment is contingent upon final inspection by a neutral 3rd party, I agree. As I said, there are far too many sleazy ‘contractors’ out there.
I just built a 4000 sg ft house for $85 per sq ft. It is brick with 10 ft ceilings and the big doors at the entrance etc… I have a tray ceiling in the media room and open ceilings in a couple of rooms. The contractor gave me a guaranteed price with allowances for things like appliances, flooring etc… Those were kind of tight but you can save a huge amount on lighting which seemed to be the most overpriced stuff. I just shopped all along for clearance deals on stuff I knew I would need.
I also saved a little money using vinyl flooring in the rec room and the non-master baths. I was going to use it in the kitchen but saved enough to buy tile. Overall, I came in within $500 of what I had planned to spend by saving in a few places to allow splurges in others.
But prices are lower in East Tennessee than a lot of the country and I started building when the market for contractors was slower. We never really had the huge shock the rest of the country had but things were still off their peak.
Hijack (although perhaps the OP might find it useful): What is the difference between level 3 and level 5 drywall work? (I assume it’s a measure of how smooth and even the finish is. Is that correct?)
And if so, what’s the difference between drywall and blueboard covered by skim coat plaster? Because I noticed that a lot of time on This Old House, they will install plaster walls.
This is the truth, the Word, the gospel and the glory.
The last 10% is where you empty out the bank account because your wife just has to have the fancy fixtures and the nicer tiles, etc, etc.
We did a major remodel (on a tight budget) and left a lump sum in the bank for “emergency” expenses, (because I’d heard too many horror stories about bad contractors and delays leaving you unexpectedly homeless, etc)
The emergency money got used up fast, on a lot of very non-emergency stuff.
Be careful!
(YMMV—but then, I don’t bill at 600 dollars .Although I do get paychecks for almost that much ) 
+1
I thought TriPolar might try and make that case. People largely get what they pay for. If you want Corian counters and oak floors you will get them.
Its been my experience that most houses are built with construction loans and contingencies. Its also been my experience that every homeowner wanting to build has a bigger eye than wallet. Every one.
And thats OK. The construction process flushes out the differences between the things I really want and the things I just gotta have. It’s a matter of compromise, priorities and budgets.
I’ve never seen a house builder set out to build a $300K house that somehow ended up building a $500K house. Just like GM makes more profit on Cadillac than a Chevy, a kitchen contractor will make more profit on premium cabinets. Thats hardly a revelation, and not a "game’ thats being played.
No ones forcing you to buy granite counter-tops. The contractor isn’t cheating anyone. You will get what you pay for-----and what you get is entirely up to you.
Absolute baloney.
Surely there are unscrupulous people in every single industry—even among lawyers and doctors. But in every industry they are criminals and outliers.
Id be willing to bet you haven’t built a house, and don’t work in the construction industry.
And believe me, I don’t think any contractor would be offended. They would simply think you don’t know what you’re talking about.