Best places to find info on new home construction cost?

Question

I was just listening to a BP podcast the other day and the guest mentioned that he saw a discrepancy between the cost to build a new home and that which he could buy an existing hime for. so I tried to find some information on new home construction price and didn't find much.

Are there any sites that are good for finding this information.

Thanks. I'm in salem oregon by the way.

Are there any sites that are good for finding this information.

Thanks. I'm in salem oregon by the way.

J Scott · Answer

Remember that just because someone else might be able to build at $X doesn't mean YOU'LL be able to build at $X.

When I moved to Maryland, I was told that it costs $100+/sf to build in this area.  I'm currently building for between $85-90/sf and thought that was great...until I met someone who was building at $70-75/sf in this area.

Does that mean those who said $100+/sf were wrong?  Nope, they just aren't able to build for what I'm building for.  And I'm not able to build for what others are able to build for.

So, it's not just what it cost to build in an area...it's what it costs YOU to build in an area...and we can't give you that information...

Account Closed · Answer

@Scott McGill

Recently I had a lender ask me how I can build at the sqft cost I had quoted in my proforma. He was adamant that it couldn't be done. His logic was it costs his local builder more than my sqft cost and he is in a softer market. His loss because, the house is now completed/sold and the lender who backed the project made his profits.

@j scott is right. It's what it costs YOU to build.

If you don't have an estimating background, you don't have historical numbers to use as hard costs. The estimating cost books out there can be useful for soft costs only. These books are nothing more than what they claim to be, estimating cost books. I would NOT rely on them for hard costs.

One avenue you might explore is to take a floor plan and shop it with several homebuilders. This would be a cost efficient means of estimating your areas building costs. Another avenue, albeit more costly one, would be to hire a professional estimator. I would recommend finding someone who is a member of www.aspenational.org.

Karen Margrave · Answer

You've been given some solid answers above, the following also play into costs:

1. fees charged by local municipalities to build. Some areas building and permit fees, school fees, etc. are higher than the cost of materials.

2. labor costs. In areas where there is abundant cheap labor, that helps keep building costs down.

3. materials costs, can vary depending on the region of the country you are in and the availability of the product.
 
4. Buildability of the land. For instance, in southern California the soil varies greatly from area to area, even in one town. The cost of dealing with loose sandy soil is much different than dealing with harder packed soil etc. Those differences can make a huge difference in cost to build. (retaining walls, etc.) Or if a parcel is really steep, it can cost incredible amounts to put in the structural elements of a job.

The best way to find out your local prices is to talk with contractors that work the area. Be sure to ask if their estimates include all permits and fees. Ask too what is the biggest "unknown" that they've come across on jobs.

Scott McGill · Answer

Thanks for the quick responce guys. So what I am hoping to find is that the cost to build a mid level 1500 sqf 3/2 is say $130 sqf to build while mid level updated 1500 sqf 3/2 are selling for 115 / 120 sqf. That is a veriance of between $22, 500 @115 or 15, 000 @ 120 sqf. Good upside potential. thought info on these two prices would be a good tool to gage market potential

Thanks.

J Scott · Answer

Somewhere between $60-300/sf is the range.  To narrow it down from there, you'll need to know:

- Location

- Type of Home

- Size of Home

- Level of Finishes

- Using a Builder or GC Yourself

- Quality of Construction

- Time of Year

- Type/Accessibility of Utilities

- Etc.

The exact same home in Atlanta could be $60/sf, while the same home in SoCal could be $150/sf...add some additional amenities and it could easily hit $200-250/sf.

Talk to local builders and you should be able to get a reasonable idea of retail pricing.  Talk to local investors and you should be able to get a reasonable idea of self-managed pricing.

Michael S. · Answer

What do you guys think about insurance companies estimates to re-build a property?  Obviously they have a vested interest in over-estimating your repair cost in order to get you to pay for more coverage.  Are certain insurance companies more accurate in their re-build estimates?

Brian Rossiter · Answer

www.building-cost.net is not too bad for a free online calculator.  If you want a good estimate, take a look at the construction books at your local Lowes or Home Depot.

RS Means is a professional estimating reference that usually gets pretty darn close to the actual numbers.  They have one titled "Estimating Building Costs for the Residential & Light Commercial Contractor," which includes a step-by-step estimating guide for those who are not professional estimators.

Account Closed · Answer

Scott,

There is no easy answer.  If you do not include the land, there are many other factors that will determine the cost. From the foundation, number of stories, local building/fire codes and so much more.  A low end home in an easy to build area might be around $60 per square foot. Start adding in more amenities and the price starts to quickly climb upwards of several hundred dollars per square foot.  In my area that has many restrictions, a good 3/2 rental property can be built for $125 per sqft.  Best thing is to check with a few local builders and ask.  Hope this helps.

Best places to find info on new home construction cost?

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