Estimating Home Construction Costs For A Single-family Home
If you are planning to build a single-family home measuring an average of 2,800 square feet, and this home will be located in a local community, you should fist look at your budget carefully. Estimating home construction costs should allow you to stay within budget. For example, a single-family home of this size will cost you at least $192000 in total construction costs, based on 2004 estimates. This figure does not yet include the cost of the lot where the house will be built. However, the good news is that your 2,800-sq-ft home can be sold for at least $370,000 afterwards. If your construction costs estimates seem to drive your finances into the red, perhaps you should reconsider the size and design of your home. To sell your home at the right price, you have to take into consideration the following factors: The finished lot cost which is inclusive of financing costs, your total construction cost, the financing cost, the cost of overhead and general expenses, marketing expenses, sales commission and the expected profit. To come up with the expected sales price for your new home, you need to first determine the lot cost which is measured by considering the following the raw lot cost and the development costs. The category "under development costs" will include the following factors: the expense in processing approvals, site preparation, site improvement, impact evaluation, utilities and land dedication. It also includes the bonding or Escrow fee, financing expenses, tree planting and preservation, wetland preservation, as well as other incidental expenses. To computer for the total lot cost, simply add the raw lot costs to the development costs.
Estimating home construction costs properly may require the use of construction cost estimating software, particularly for large buildings. Otherwise, estimating home construction costs simply requires simple arithmetic. These are some of the factors, which, when added up, will show your total construction costs: asphalt driveway and the other types of driveway costs, wood patio or deck, landscaping, sheathing, trim material, floor tiles and carpeting, price of appliances, countertops and cabinets, painting, drywall, insulation and lighting fixtures. Additional factors like electrical wiring, plumbing, gutters, siding, roof shingles, stairs, doors and hardware should also be considered, All the other types of expenses that could affect the total construction costs fall under this category. It is important to pay attention to every step of the building process to keep building construction costs under control and within budget. Once you have taken into consideration all of these factors in estimating home construction costs, you will more or less come up with an accurate figure that will help you set a budget when building your dream home. |
