Before pricing a home build, there are some paramenters to keep in mind. Every home build is unqiue to the area, the site, and the owner’s choices. With that in mind, these are the main areas to consider.
- The Lot cost is the responsibility of the owner and purchased before a builder is selected.
- Lot Development is the cost to prepare the lot for the home. Lot development includes clearing the site of trees, bushes, and stumps, making a building pad (by removing or adding dirt), driveway length and material, and access to utilities (sewer/drainfield, water/well, gas, electric, etc). The builder will need to analyze the lot to determine the cost to develop the site.
- Plans show items which will affect the cost such as: square vs. angular layout, one story vs. two stories, square feet, foundation type, rooflines, number of garages, number of porches, decks, etc. **It is best to talk with a builder before purchasing plans or having plans drawn by an architect.
- Architectural details such as columns, arches, exterior trim or embellishments, ceiling styles, window treatments, built-in cabinets, wainscoting, landscaping and hardscaping elements.
- Specifications and selections which can be divided into two categories: 1) selections by owner and 2) builder’s process of building (structural, HVAC, insulating, flashing, etc. Unless you have building experience, you willl not know the different ways to build homes (cutting corners vs. superior building techniques).
The cost is the lot + lot development + plans + architectural details + specifications + selections.
The budget is how much an owner wants to spend.
The budget and the lot are the only known items at the first meeting. So it makes sense that time can be 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 or months of working with a builder.