Homeownership is the dream of every family and moving from a rental home to your own house relieves one of the inconveniences of paying rent every month. The cost of building a home varies depending on your location, the size of the home, and if modern or custom designs are used. a majority of measurements are taken per square foot. Building a home in a rich neighborhood or a bigger home results in higher costs due to additional building materials and labor costs or the reputation of the area you are moving to. In this piece, we introduce you to the tips you need to know before developing a home.
Estimating Residential Construction Costs
The common rule in estimating the cost of building a residential building is the size of the house to be developed and the type of materials to use. But there are also other considerations that you need to have in mind before constructing a home.
- Cost of Plot of Land
Many quotations for residential construction do not include the cost of the land. Before choosing the right area to develop a residential project it is crucial to consider the state of the land, the presence or absence of pollutants and access to the electricity grid, and access to the sewer system. Developing in a polluted area may lead to additional costs of cleaning up the area. In general, a plot of land may cost $3,000 – $150,000.
- Contractors and Labour Costs
In a building project, the general contractor and the masons do a majority of the work hence consuming a lot of the budget costs. A general contractor charges around 10% – 20% of the construction’s total cost, sometimes called “cost plus” while others will ask for an hourly rate of $50 – $150 per hour. Masons charge differently but their rates vary.
- Building Permits and Regulations
Building permits are official documents that authorize you to begin constructing the property. Developers need money to obtain these documents from the relevant authorities to continue with the project. Permits range in prices from $10 – $500.
- Size of the House
This is one of the greatest considerations in developing a residential project. Many rates are calculated according to the price per square foot. Many homes typically cost $100 – $200 per square foot to build which also depends on the materials used and the location
Conclusion
Developing a residential home is sometimes better than buying a ready-built home as you have the freedom to design it to your liking. The above tips will offer a roadmap to ensure that you do it right.
References: Homeguide, QuickenLoans, 1build.com
