How Much Does It Typically Cost to Build a Home?

April 27, 2022 • Real Estate • Views: 759

Why buy an existing home when you could build the perfect home for years to come?

When you build a home, the sky’s the limit on what you can do. Whatever design, materials, features, or landscape you want – you can have it. The only thing that can hold you back is money.

In this post, we’re going to help you out by examining the cost to build a home. Keep reading, and you’ll have a better sense of how much you’ll have to spend to get that dream home.

The Average Cost to Build a Home

HomeAdvisor states that the average cost to build a home in the US in 2022 is around $284,000. This won’t include the cost to purchase your lot, the price of which will depend on location and size. When you compare this to the median cost of an existing home – just over $400,000 – the difference isn’t all that much.

Of course, there are things that you can do in the home building process to save a bit of money. Next, we’ll look at what goes into the total cost of building a home, how you can finance your build, and what you might want to leave out. Check out kasyno bonus bez depozytu for a fun casino bonus.

What You’re Spending Your Money On

The biggest factor in how much your new home is going to cost is how large it is. How many bedrooms do you want, and how many square feet do you want the entire house to be? You can add between $20,000 and $50,000 to the price with each new room you include.

When you actually start planning and building, here are the home building steps that you’ll be spending your money on:

  • Planning and getting permits ($7,000)
  • Prepping the land and installing the foundation ($14,000)
  • Framing the house ($35,000)
  • Installing roof, openings, siding, walls, windows, etc. ($50,000)
  • Install plumbing, electrical, etc. ($50,000)
  • Adding interior – drywall, flooring, countertops, cabinets, appliances ($100,000)
  • Exterior finishes – landscaping, driveway, walkway, patio, deck, etc. ($20,000)

How to Finance Your Build

If you’re looking at these costs and wondering how you’re going to pay for them, there are measures you can take to ease the burden. Unfortunately, mortgage lenders are more hesitant to issue loans to new builds, but construction loans are in place to help.

If you’re building and then selling a home, you can apply for a construction SPEC loan. Learn more about them here, but they essentially help you fund all of the initial aspects of designing and building your new home.

Picking and Choosing

As a homeowner, you’re probably wondering where you can save the most money on your new build. The easiest way to save money is by cutting costs on interior and exterior aspects.

By saving money on things like cabinets, lighting fixtures, landscaping, and patio materials, you can drastically lower the overall cost of your new build.

Build Your Dream Home ASAP

Now that you know the typical cost to build a home, you can find financing and start planning your new build ASAP. Once you’ve got financing, you can start dreaming up the perfect home to live in or sell.

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