Understanding the Cost for Building a House

You want to buy your first home, or maybe need to move up to a larger one. The option to have your house built just for you, rather than purchasing something used or already constructed is worth considering. Evaluating these option however can be complicated by the lack of pricing information to achieve your desired outcome for you new home. Home design & construction cost information is vital if to determining whether this option is a viable one or not.

However, trying to find a set price on a house of a particular size or in a particular style, is virtually impossible. Many builders have tried to streamline this process by producing template designs. While there may be an argument that it should work, the reality is that it seldom does. Every situation is slightly different, and if a project builder were to include  option that covered every situation, the cost benefit of having a template project design home would vanish. If you can accept that the design and pricing of a home is a process, we can help to make that process as smooth and cost-free as possible.

One advantage of the Design and Build process is that you begin with a set of requirements, a budget, and then go about molding those requirements into a coherent and attractive package. The needle-in-a-haystack approach of scouring display homes, builder design catalogs, and getting multiple preliminary quotes from display home consultants is avoided. This process typically begins with the desired outcome, and then uses the design-build process to achieve that desired outcome. Design - Inclusions -Price - Builder.

There are many possible variations to the the finishing items that are included in your home. In most cases a builder will to provide a per-determined set of 'standard' type inclusions, and then vary those depending on your preferences. This way, items that are important to you can be personalized, and those less so will by default be 'standard'. This is simple way to accomplish the hard and laborious process of selection the make and model of every single item in the home. This way you can focus on those items that really matter to you.

The details do however affect the cost for building the home. Small details, such as the carpeting put down in the bedrooms and the type of counter top used in the kitchen has some impact on the overall cost. My favorite analogy is  to compare a sponge cake to a Christmas cake. It is not all about what the builder will spend buying wood and sending out the building crew.

Starting the Process

The first step is to talk to us about general prices in your area. That will provide the framework for determining your budgetary constraints. A good place to start is to download our 2013 Design Collection so we can help you find your design budget bearings. Talk to us about the price ranges of the different designs in your area. You can then use this information to flesh out the type of home you want, and we can help you marry these with the amount of money you want to spend.  Using these tools is an easy and cost-free way of getting the basic information you need.

A builder will start out with an estimated range of what your total cost may run. This will typically reflect the cost per square metre, and there will be a lower and higher figure. This is as close as you can get to determining the exact cost of building your home without paying someone to go through your plans in great detail to come up with a more precise range of price.

Once you are given a range, you have to make sure it fits within your budget. If you cannot afford the higher end of the range, then you may not be able to afford the home as you have planned it out. Some compromises may need to be made in order to keep it within your budget.

Working with a Builder

It is important to understand that the estimated range of cost for your home initially delivered from a builder will only be an estimate. You could still end up higher, or you could end up lower. All of the figures that go into the total price of a home have not been calculated yet.

Contractors have not started bidding and no one has been hired to do the work of building the various parts of your new home. The builder can give a good estimate of where your dream house may be in terms of price, but they do not know specifically what it is going to cost at that point.

If you believe you can afford the home, then you will place a deposit with the builder you trust and have them work on more specific figures. They can come up with more of a set price at this point, since they have the job and it is now worth the time required to figure all of the individual expenses involved.

This is when you will have the best idea of what it will cost to build your home, and whether you need to come down in square footage or other features to get your price where you can need it to be.

Our free Building Buddy New home Cost System is a better option. Let us work with you on your plans (or ours) and let us find the best building options for you. We live by the slogan: "Best Design, Best Quality, Best Builder at the Best Price."

The cost for building a house is not something you can ever set in stone. You have to determine the absolute minimum space and features that you will accept, and then start working with a builder to determine how much house you can afford to build. Take the steps slowly, so you do not find yourself in the middle of construction and out of finances. Call us free 1800 710 102.

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