So how much does it cost to build a house? That was the first thing I googled when we decided to build. Then I googled mortgage calculators on what we could afford. Then googled how to sell a kidney to afford the house we wanted.
Since then, google and I are on a first name basis especially with all things building. If I was a professional at anything (other than my actual day job as an accountant) it would be “looking up stuff on the internet”. I am serious. I don’t have the time to watch a movie or the newest Netflix documentary, so I’ve developed the wonderful skill of heading over to Wikipedia and reading the plot so I can stay relevant when I go to the lunch room.
Based off my “research” (I use that term lightly) and then actual 1st hand experience of building a house I can tell you two certainties about the costs to build:
- It depends.
- It’s expensive.
It depends.
If you’ve heard it once, you’ve heard it a billion times. I’m going to get to actual numbers on my build, but that’s all they are. Actual numbers for my house. So when looking at my budget don’t take it as gospel. Keep in mind the specs of my house (the square foot amount, certain structural elements, finish grades, etc.) and keep in mind the location. Pretty positive that being able to buy 8 acres for less than $40K is on the lower end of the land price spectrum. So just so those in the back can hear: your tastes and where you want to live are going to determine your cost.
It’s expensive.
I don’t care what you’ve read about cutting your own timber, you and your spouse putting ALL the sweat equity in, and being able to find the most amazing deals. It’s all relative. What I mean by that is that just because you saved $1,000 on your perfect farmhouse sink……. that is just a $1,000. Concrete for your basement or other type of foundation isn’t free and if you find a deal on it I 100% believe there is a catch.
Also, you will go over budget. That is a fact. Now, you can choose to go over budget or not, cut budgets elsewhere to cover you going over budget, or if you are a billionaire I guess you could just not compromise on anything. I don’t fall into that last category so on our build I am constantly saving money in one area to cover costs in another area. Every time I turn around to buy something for the house it is at least $1,000. Five exterior farmhouse lights- $1,000. Toilets- $1,000. Again, I’ve gotten some major deals on fixtures and things but it still adds up.
Ugh. One last thing about the cost to build that I think should be mentioned is having cash helps. Bless my own Dad’s soul, he has let us live in his house with him for a year now. In the meantime (plus with the sale of our last house) we were able to secure some serious cash. Which is a good thing. Most banks are going to want 10% to 20% down in cash on a construction loan. This isn’t 10% of what you think you’ll spend by doing the work yourself or getting awesome deals- it’s 10% what the appraised value of the house you are going to build is. So although at the end of the day I will only have a little over $300K in a loan, my house and land were appraised to build at $425K. So we needed between $40K to $85K in cash just to get the loan, plus closing costs (which for us were about $6K).
Cash also helps you be able to snag deals when you see them. You can “float” yourself money until the next draw happens. Or if you are really dedicated you can see if you can just not reimburse yourself on the costs and therefore not add them to your loan balance. We’ve used our cash on hand to do a bit of both.
The Cost List
- Excavation (backfill, foundation, poured walls, drains) : $34,176
- Framing (I Joists, 3/4 Advantex, 7/16 Zip sheeting, 2×6 walls, trusses): $69,645
- Front door allowance: $2,875
- Exterior windows and doors (22 units): $8,250
- Roofing (metal): $11,325
- Porches (856 sq ft, concrete, vinyl ceiling): $5,992
- Gutters: $1,875
- Insulation (R23 spray foam walls, R38 Cellulose attic): $13,600
- Dry wall (smooth ceilings): $13,083
- Interior doors (6 panel oak, 18 units): $7,360
- Interior trim: $10,300
- Door knobs: $800
- Stairways: $3,500
- Plumbing (basement rough-in, 14 units): $10,500
- Plumbing fixture allowance: $3,500
- Whole house attic fan: $900
- Electric: $10,256
- Electric fixture allowance: $2,400
- Heating and air: $18,275
- Hardie board siding: $17,375
- Bathroom floor allowance (294 sq ft, $15 labor, $7 material): $6,468
- Shower tile surround (3 units): $3,000
- Hardwood floor allowance (1,840 sq ft, $7 material, $2.50 labor): $17,480
- Cabinet and counter allowance: $18,745
- Closet shelves: $1,000
- Painting allowance: $9,500
- Staining: $4,325
- Septic (4 bedroom, mound system): $28,000
- Septic design: $900
- Soil test: $410
- Site plan: $800
- Land clearing: $2,000
- Driveway: $6,801
- Water tap: $3,000
- Electric tap: $800
- Temporary electric: $300
- House plans: $2,340
- Electric to house: $1,000
- Water to house: $1,000
- Outdoor wood stove: $11,321
- Township and county permits: $2,500
- Fireplace (insert, hearth, mantel, propane tank, gas lines): $10,000
- Landscaping: $2,000
- Appliances: $5,000
- Land (8 acres, legal fee): $37,000
- Closing costs: $5,700
Total Budget: $427,877
Sticker shocked? I was too. Check out my next post on how I got this number down to a reasonable loan amount.
