How Much Should Building a New Home Cost?

Most people dream about building a new home. Others turn to this option after realizing that the market doesn’t have a property suiting their preferences. But regardless of the reason for building a new home, the cost is a vital consideration. Ideally, you want to know the amount of money you will spend on your new construction project. Here’s what you might spend on your new construction project.

Inspection and Permit Fees

You require proper permits before building a new house. Also, you need experts to inspect the lot and the home upon completion. Inspection and permit fees vary and might be part of the base price. Otherwise, you may cover these costs upfront. Permit costs vary from one place to another, with the average building permit going for more than $1,200. Sewer and water inspection fees are around $5,000. Impact fee may also apply to the new building project. Therefore, take the time to research inspection and permit fees before starting.

Architecture and Engineering

You require an experienced architect and engineer when building a house from scratch. But your builder could factor in the work of these experts in the base price. If you opt to hire the architect and the engineer, you will need to pay them to design your house’s structure and appearance.

The amount of money you pay these experts will depend on their rates and design preferences. Nevertheless, a residential architect can charge between $85 and $125 per hour. A building engineer will charge between $100 and $150 per hour. Also, you might need a soil engineer to test the land and ensure its safety for the project. Therefore, set aside between $500 and $1,000 for this service.

Foundation and Framing

Building the foundation entails excavation, cementing, and backfilling. These tasks can cost you around $26,000 because they account for around 10% of construction costs. Framing will cost you approximately $35,000 and an extra $3,800 if you add trusses. You will also spend about $760 on the sheathing.

In addition to these expenses, you might incur the following costs:

  • Interior features: Around $68,000
  • Exterior features: About $33,000
  • Major systems: Around $33,000
  • Outdoor features like landscaping: About $16,500

When you calculate these expenses, building a new home will cost you between $150,228 and $443,349. The size, exterior and interior feature preferences, and location cause this cost variation. Therefore, leave room for unexpected fees when budgeting for your new home’s construction project.