How Much Does it Cost to Build a New Home?

Posted by Florida Realty Marketplace on Thursday, July 23rd, 2020 at 8:00am

How Much Does it Cost to Build a New HomeIf you’ve been looking at the new homes for sale in Windsor Island Resort for some time and still haven’t found the one that’s right for you, you may have come to the conclusion that you need to build a home. There are a number of reasons why building a home can be ideal. However, many people are concerned about the cost. How expensive is it to build a home? Can you do anything to keep the costs under control? Here are some tips about building a home and budgeting accordingly.

Why Build a New Home?

First, why should you build a new home? It’s generally more affordable to purchase an existing property. However, there are some downsides to doing so. Here are some reasons why you might want to build a new house:

  • You can create the layout you want.
  • There’s no need to renovate or repair anything.
  • You can pick out the fixtures, flooring, colors, etc.
  • The house has no long-term issues or hidden problems since everything is brand new. It’s still important to get your new construction inspected, though.
  • You are the first person to live in the house and use the appliances.

Cost Varies by Location

When looking at costs, one of the first things to do is consider where you’re building. For example, according to the U.S. Census Bureau Survey of the Median Price per Square Foot, it’s on average more expensive to build a home in the northeastern part of the country than it is in the south. In Florida, the average is usually around $282,000 but that does change depending on where in Florida you’re building, the size of the home, and other factors.

Overall, expect to pay around $100 per square foot for a home in Georgia or Florida on average. Just realize that a home on the beach or in a major city may be more expensive than building a house in the suburbs.

Cost Vary By How Much Is Custom

If you're building a custom home, there are a ton of things to consider.  The financing is different for one thing.  You have to decide whether you will use a builder to do everything or if you will sub out some of the work.   If you're getting a custom home you'll have to take into account extra costs.   You may have to pay to have a septic tank installed, a water well dug, or a propane tank installed if you’re too far away to hook up to the city utilities.  Custom homes allow you to get more of what you want, but typically cost a great deal more and take a lot longer to build than one being built by a builder.   Homes for sale in Charles Cove, for example, are designed to be built over and over again.   The build time and cost is less because of this. 

You’re Paying For More than Just the Crew to Build a Home

Whether you build a custom home or purchase a new home in a neighborhood by a big builder you're paying for extras that you might not realize.   The price of the home often include the architect,  all of the inspections, permits, the land, and for landscaping. All of these expenses add up. If you're doing a custom home, you may also find that the cost of some parts of the home are much more expensive than you thought. Your cement foundation, for example, can be over $20,000.

Where Can You Control Costs?

Fortunately, there are some things you can do to keep your budget under control. The most blatantly one is size. A bigger home is obviously going to require more materials and take longer to build. Two-story homes are more expensive than single-story houses, too. Keep this in mind when designing your home. If you don’t need a huge house, don’t build one.

Typically, the finishings are the costs that sneak up on you and are present in both pre-built new homes and custom homes.  High end marble counters, real wood floors, expensive tiling in the bathroom, and other high-end options can add up. 

Appliances are another cost. You do need a refrigerator, stove, and other items, but consider the cost. Again, there are high-end options that are going to make more of an impact on your budget than more basic applications would.

Ready to Get Started Building Your Dream Home?

If you’re building a home, you may not think you need a real estate agent. That’s not the case. If you want to go the custom route, you'll need to buy the land, plus an agent has experience working with builders in your area. They can help you line up a builder and negotiate on your behalf to get you more for your money. The Florida Realty Marketplace team is here to help you build your new home. Contact us today to learn more.

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