There are many factors that go into pricing a custom home. The following is just a basic list of what you want to consider when drawing together your budget.
I. The Lot
The lot is the one cost the owner is fully responsible for and is usually already purchased before selecting a builder.
II. Lot Development
The cost to prepare a lot for the home including clearing (tree, brush and stump disposal), making a building pad (dirt removed or added), driveway length and material, access to utilities (sewer/drain field, water/well, electric, gas). The builder has to analyze the lot to determine the cost to develop the lot.
III. Plans
Several factors affect the price such as layout square vs. angular, one-story vs. two stories, square feet; foundation (slab on grade, crawl, basement, wall height); roof lines; the number of garages, porches, decks, patios
It is best to talk to a builder before purchasing plans or having plans drawn by an architect
IV. Architectural Details
Columns, arches, exterior trim embellishments, ceiling styles and trims, window treatments, built-in cabinets, wainscoting, landscaping and hardscaping elements
V. Specifications and Selections
how is the home being built? (veneer, windows, flooring, cabinets, etc.). Specifications can be divided into two categories: 1). selections by owner and 2). builder’s processes of the building (structural, HVAC, insulating, flashing, etc.). Unless you have years of experience you will not know the different ways to build homes (corner-cutting vs. superior building techniques).
Cost= lot + lot development + plans + architectural details + specifications+ selections
VI. Budget
The budget and the lot are the only true known items at the first meeting. And, to be sure, time is saved when all parties know the budget before plans and specifications are selected.
Lot development costs, plans, architectural details, and owner selections are determined after weeks-months of working with a builder.