How to estimate and construct your own house
What is the cost of building a house? It is around $80 to $120 per sq ft or may be more completely based on its size, design, quality, shape and location – the professional says. This cost is depending on location only.
The selling price:
- 25% material,
- 25% labor,
- 25% land cost,
- 12.5% builder profit,
- 12.5% builder overhead, which includes the cost of running their business, construction financing costs, and the new home's marketing and sales costs.
But the builders have to take it in mind that the material, labor, land, and overhead costs when estimating the costs of building a new home. For the costly roof and windows and other expensive building material, bid will be high. All this compromising and cost balancing is done in the planning stage of construction.
In Carl Heldmann’s page, the builders can get a great, user friendly FREE cost estimating software called Cost to Build Calculator that utilizes the latest in construction estimating software.
For more accurate cost estimating read Cost Estimating Explained page and spreadsheet page.
The cost to build calculator can compute cost per square foot is due to many variables, including different types of foundations, roof pitches, quality of building materials, home design, design and number of windows, and so on. The National Association of Home Builders in their most recent report shows the current average cost to build a house is $94.54 per sq.
There are some examples:-
Four examples are set here that how the cost per square foot can vary by as much as $40 as these variables come into play.
- 2,000 sq. ft., simple design = $80 per sq ft = $160,000. Built on a $80,000 lot. With an appraisal of $320,000, if you decide to be your own general contractor, you might save $80,000 or more (12.5% builder profit, and 12.5% builder overhead).
- 2,200 sq ft steeper roof, 3 car garage, stone trim, etc. = $90 per sq ft = $198,000. Built on a $100,000 lot. Appraisal of $398,000 = you might save $99,000 or more.
- 2,400 sq ft, more glass, porch, hip roof, etc = $100 per sq ft = $240,000. Built on a $120,000 lot. Appraisal of $480,000 = you might save $120,000 or more.
- 2,600 sq ft, more complex design & costs = $120 per sq ft = $312,000. Built on a $156,000 lot. Appraisal of $624,000 = you might save $156,000 or more.