My New Blog

                      HOW MUCH TO BUDGET FOR YOUR CUSTOM HOME


Good day to you. I get these questions ALL the time with my building clients: What is the general cost of construction? What will I have to spend to get the house I want? What does a custom home cost? How much should I budget for building? Great questions but they are inherently hard to answer in terms of a singular $ answer. The problem is in the nature of the question. You see by its very definition Custom is not main stream or average. Every true custom building project is different. Custom is wide open and the owner is only limited by their specific budget.

There are two, well maybe 3 primary driving forces with regards to cost of construction on a custom building project:
 
1. The simplicity or complexity of the design itself. A square box slab builds less expensive than a slab going in 6 different directions. A two story builds less expensive than a one story given equal sq. ftg. 

2. The simplicity or complexity of the finish out. Again a homebuyer who is building from the ground up is only limited by their own budget. In terms of features and options the sky is the limit in today’s building world. There are more products, options, materials and material alternatives than ever before. But the basics do not change. Wood is still more expensive than carpet generally speaking. Granite is more expensive than Formica- and on and on.

3. The third is the builder themselves and more specifically the profit or margin they are willing to build the home for. That can vary greatly depending on the builder’s size, reputation within their market, their abilities and resources, need for business or their current "pipeline" and their business "bottom line".

So a home bid can vary greatly based on the above mentioned factors. I can take a home plan and set of specifications and give it to 4 builders and get back 4 different prices. I see it all the time- one home one set of specs and pricing ranging from $90 per ft to $150 per ft or more. You REALLY have to be careful and thorough in the design/bid process. I say this carefully. Most of the build projects will run from $100- $160 per foot given the same specs and that excludes the lot cost. The range can be  $50 - $200 depending again on design and finish out.

I hope this helps . Be looking for more forthcoming blogs on home construction and home cost. If you have need of additional information or would like to further discuss your specific building situation please feel free to contact us. We have over 30 years of experience to guide you through the process.

S. B. McClain Broker Owner,Cornerstone New Home Solutions

Stephen B. McClain is the licensed Broker Owner of Cornerstone New Home Solutions. He is also a certified instructor for the Texas Real Estate Commission under Champions School of Real Estate. He has a career spanning over 30 years in homebuilding and real estate. He can be reached at smcclain@cornerstonenewhomesolutions.com