How Much Does It Cost to Build Your Own Home?

Imagine everything you’ve ever wanted in your dream home. With the right budget and preparation, that dream can be a reality. Of course, you probably ought to know a few things first before undertaking such a huge project. Here’s a look at how much it could really cost to build your home.

Determining A Budget

To begin with, establish a budget. A swimming pool and a tennis court are nice, but if you do not have unlimited amounts of cash to pour into a home, you need to follow a strict budget. Of course, the cost of building a home varies, but the price lies in how you build it.

Next, find out a “guesstimate,” or approximately how much building your home will cost. The price of the land is easy to verify with local real estate websites or realtors. There are online tools that guide you in creating a plan your dream home, complete with an estimate.

Figuring out how much your home will cost per square foot in your area is also a good idea. The price per square foot is an average, but it will help determine how large or small your space can be. Luckily, cost per square foot is often cheaper.

An easy way to do this by looking at new homes in your area comparable to the one you want. Take the price of the home, subtract the price of land and divide this number by the square footage. For a decent ballpark figure, multiply the estimated price per square foot to the total number of square feet you want in your home.

Contact builders in the area who have built houses similar to the one you want. They can tell you how much they charge per square foot and give you an approximate price tag on your home. Some builders will even list the materials used -- ask to see as much detail as possible so you know whether to cut something out of the budget or not.

Determining The Process

Take a look at the process of building a home. How much time can you spend on it? If you have all the time in the world, save yourself a bundle and be your own general contractor. This works best if you have some experience in developing homes. If you’re fully determined, you can find guides online or hire a builder to help you oversee day-to-day activities.

Once you know how long you can spend building it, figure out what you do and do not need. The bathrooms and kitchen are the most expensive parts of a home. However, the quality of the materials used, size of the windows and type of ceilings built can affect the price greatly.

Look at the cost of construction expenses before creating a blueprint to see if there are any small details you don't necessarily need. Try building on a flat lot that will cost less. Make sure to plan properly to avoid high overruns on the original price.

Unanticipated problems can lead to a higher cost. You should prepare by planning these into the total budget -- it will make it seem less like an extra cost and more like an expected one.