Types of Costs to Consider when Building a New Home
[fa icon="calendar"] February 07, 2020 / by Home Services Expert
There’s something fun about the thought of building a house from the ground up. For many, there’s also something daunting and scary about the thought. When it comes to a home, many people choose to buy an existing home rather than build new. Reasons for this could include lot availability, locations, lower costs, less hassle, and less “unknowns”.
While all of those reasons may make sense in some circumstances, there are other times when building new makes more sense. Examples include rebuilding in a fire damaged area, if you have a perfect lot and all it needs is a house, or you have the dream of envisioning your perfect home and seeing it come to life.
Whatever your circumstances, at Experts In Your Home we want to make the new home construction process as easy as possible. As a potential home builder you want to know some of the costs associated with building a new home. This list covers the big areas, but a full estimate is just around the corner by contacting our Expert home builders.
What Costs are Associated with Building a House?
To build your dream home, the first thing you need is land. Sometimes lots are available in a neighborhood that has ready to build land, but often people choose to build on land that meets their location desires and is outside of town. If you don’t already have land, it’s best to contact a real estate agent to find the perfect place to build your new home.
After you find a plot of land, it’s time to work with an architect to start envisioning your dream home. We recommend that you work with an architect and builder on this one to make sure your wishes can become a reality. As you go through this process, you’ll end up with a very detailed plan of the house that will be built, getting you ready for permits.
Once you have the house plans, you’ll need to get permits and approval from local regulatory agencies. Along the way, your new home build will need to be inspected as well. Sound overwhelming? This is the part where having a knowledgeable contractor to handle permit applications and inspections is invaluable!
Construction Costs of Building a New Home
The biggest costs in the home building process, of course, are construction costs. Here’s a high level breakdown of where your money goes:
This includes excavating the land and pouring the foundation of the house.
Framing involves the wood frame to build your house, along with the trusses and sheathing.
Exterior finishes protect your home from the outside elements and include siding, roofing, windows, doors.
Major Systems Installation
Major systems include electrical, HVAC, and plumbing.
Interior finishing consists of all the stuff you see inside like cabinets, drywall, carpet, toilets, doors, lighting and much, much more.
Final touches can include the miscellaneous things to finalize the construction process such as landscaping, decks, cleaning up, etc.
Additional costs will also include the builder’s profit and overhead, taxes and any other sales related costs. While this list is just an overview of the main costs of building a house, we’d love to hear from you if you have any further questions or want to get a detailed estimate for building a new home in Chico or Paradise. At Experts In Your Home our home builders are always here to help, so give us a call or fill out the contact form online today!