How Much Does It Cost to Build a House? A Simple Guide

When it comes to purchasing a home, you have two options. You can buy a pre-existing house or you can build your own.

While building a house from the ground up affords you more personalization than buying a home built by someone else, it comes with a variety of questions that must be answered before you begin.

The average cost of buying a pre-existing home in the United States is right under $250,000, but how much does it cost to build a house?

Well, the answer to this question will vary based on a number of factors, but there are a few ways to predict the cost of building a house for you and your family.

Read on to learn more!

How Much Does It Cost to Build a House: Determining Factors

As we mentioned above, the cost of building a house varies widely, depending on a few important factors. These factors include location, depth of customization, details, and size.

Here are some things to consider regarding each factor:

Location

Where are you planning to build your home? In the country or in a major city? On the East Coast, the West, or somewhere in the middle?

For example, the most expensive region to build a home is in the Northeast, while you’ll get the most for the least amount of money in the South. Once you know the region in which you want to build, it’s time to pick the city or county.

While it’s possible to save money by building in a rural area, you might run into additional costs associated with installing a septic system or propane for heating.

Customization

Next is the depth of customization you want to include. A custom home on a meticulously chosen lot will cost more than one on a developed lot.

This is because hiring an architect is more expensive than working with a drafter. Now, certain companies, such as hollandhomesllc.com offer both custom building and developed lots. Going with such a company can allow you to look at both options and make your decision from there.

Details and Size

These factors will have the largest impact on your budget. Obviously, the larger the home you build, the more expensive the price tag. But finishes and other details, like foundation, roofing, and appliances, can also drive up the cost of your home.

Expect to spend about $150 per square foot before adding the cost of details. For example, if you want a basement rather than a simple slab, your home will be more expensive.

High-end flooring and countertops can add more than you think to your final cost. And if you’re interested in features such as solar panels, a deck, or a pool, you’ll be spending more.

Is Building a House Right for You?

When deciding whether to build or buy, answering the question “How much does it cost to build a house?” for your chosen locations can help you make your decision.

Make a list of potential neighborhoods, the size you want, and the type of finishings and details you’re interested in. Then, use your wishlist to estimate what your home would cost.

Remember, a builder can be a huge help during this process, so don’t be afraid to ask for advice.

For more tips on creating your dream home, whether through construction or design, be sure to take a look at our blog!