Top 5 Expenses When Building a House
To build the house of your dreams, it helps to understand the cost breakdown and some of the most expensive parts of building a home. The key to staying within your budget (while still having everything you want) lies in making wise decisions. Keep in mind these top five expenses when it comes to the cost of building a house.
Framing is the most expensive part of building a house. While exact framing costs can sometimes be tricky to predict, there are general guidelines that can help you understand what will drive costs up.
- Size. The bigger the house, the more expensive it will be to frame.
- Type. Stick framing is the most common and least expensive (approximately $100 to $200 per square foot). Timber framing is a special type of framing that uses carpentry techniques rather than nails to hold the frame in place. It costs approximately $100 to $200 a square foot.
- Materials and labors. The price of lumber plays a big role in the total cost. The cost of labor plays less of one, but it still needs to be taken into account.
There are two key determinants for foundation price:
- The location of the home. Local material costs influence the foundation price, as does the skills of local laborers. In some locations, contractors stick to building one type of foundation—becoming highly skilled and competent in the foundation they build, but not with others. Homebuilders may see a price increase when they choose a foundation that their local contractor doesn’t typically build.
- The type of foundation. A slab foundation is the simplest and cheapest type of foundation. Perimeter foundations and full basement foundations require more materials and labor and are more expensive.
One of the more complex jobs when building a house is installing the plumbing. Because plumbing installation requires a specific skill set and knowledge, the job is oftentimes bid out, which can raise costs. Other important factors that influence total plumbing cost include the following:
- The number of stories. Two-story houses cost more.
- Excavation work. Heavy machinery and special skills are needed for excavation work. Plumbing installation that requires lots of tough excavating can be expensive.
- Materials. The size and type of pipes and fittings can vary.
The size of the roof and the type of material used determine roofing cost. Many different types of shingles (each varying in cost) can be used to roof a home. The most common type of shingles is asphalt. Because they are light and easy to install, they are also the cheapest. More expensive shingle options include:
- Wood shake
The size of the house and type of material plays a significant role in flooring costs. The most common types of flooring include the following:
- Vinyl and linoleum
This information can help guide you as you make important building decisions. Remember to stay patient and always use recommended professionals you trust. Their expert skills and knowledge help build dream homes with ease.
When you buy a pre-owned home, the price is pretty upfront. You give them this much money, and they give you a completed house. But, when planning to build a new home, costs have a way of expanding while your home is under construction if you are not paying attention. Knowing how to manage these potential budget busters can help keep your costs low and the entire project well within your budget.
The Bottom Line on Controlling Costs
In the long run, you want your home to last, serve your needs, and not break the bank. And, it is possible to have all three of those. Frugal and cheap are not the same thing, and you can save money on your new home construction without being a penny-pinching Scrooge. Professional and reputable architects and contractors can build the house you want that also allows you to live within your budget, so be sure you choose yours wisely.