United Bilt Homes, Estimating Costs For Building New Homes
Friday, August 22, 2008 11:21:40 AM
Many of you are probably thinking about building a new house and finally having the home of your dreams. However, before you can take on such a project you must be sure that you can afford it all. There are many factors that go into home building costs, but the estimated cost is the place where you should begin. Unfortunately, even the estimate can be a huge task to take on.
One way to get an estimate on your new home building is to find a similar house in or around the area that you live. You should specifically look for homes with the same overall look and size of one that you want to build. Once you find one that matches up, take the selling price of that home and subtract the cost of the land. This will give you a rough estimate of the construction cost.
If you have selected a home in your neighbor that was built a few years ago, you must factor in the appreciation cost. As the years pass, the cost of labor increases. Homes built two-three years ago were less expensive to build. Make sure to add 2 to 5% for increased labor costs.
Another consideration includes the interior features of the home such as finished basements and custom kitchens. If, for example, you wanted a completely furnished basement and the house than you are using as a reference does not include such a feature than you must add in the extra costs. The estimate will need to include the price of a finished basement and any other interior features that you plan to add. Keep in mind though; small interior additions here and there can add up to thousands of dollars very quickly.
If you feel as though you are not cut out for figuring out the estimated cost yourself, then consider consulting with a construction company for a free estimate. The process is usually quite easy and requires you to show the construction company the type of house that you are interested in. After getting an idea of what you interested in, the construction company will be able to respond to you with a quick estimate. The estimate is generally quite accurate due to their expertise and experience in the field.
If the house that you plan that you are interested in having built is different from what is available in your surrounding area, consider using a house plan to guide your construction company in the right direction. House plans can be obtained by going online and typing in the terms ?home plans? or ?house plans.? There are hundreds of sites that offer thousands of house plans. You are bound to find the plan that matches all of your wants and needs because you can search by type, size, number of rooms etc. The blueprint can be downloaded for a very small price. The construction company can then take a look at the blue print and give you an estimate.
Home building kits are another great alternative to obtaining a new home estimate. Several companies offer home building kits which contain everything needed to build a house, with the exception of labor costs. Your construction company can give you a quote for labor charges. Labor charges a very important aspect of home building because they constitute a significant portion of the total cost. However, if you have the expertise then using a home building kit and building it yourself can reduce your estimate radically.
Being precise and detail oriented is the best approach when it comes to the planning stages of building a new home. However, even the most organized and accurate person may run into problems during their construction process due to overrun costs. You must keep in mind that there may be an unexpected cost overrun. For this reason it is best to put away about 10 to 15 % for any unforeseen events. This will ensure that you have the money to cover any overrun.
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