How To Estimate New Home Construction Costs

Building your new home is a challenging task. But it is definitive. Having your home gives you the freedom and the peace of mind that living in a rented household lacks. Like I said before, building your own home is more challenging than it sounds. You have to look at various factors and associated costs. Location is one of the most critical factors. You will be required to choose a safe and secure location for your family. You will want a neighborhood that suits your work life. To understand how to estimate new home construction costs, read below.

What defines how to estimate new home construction costs more easily?

Before starting construction on your new home, you will require construction plans. These are drawings that help builders build your home. You must also decide what kind of home you want—single or double-storey. Homeowners prefer dual-storey households. If you already have drawing plans, then your best goal is to hand them over to our cost estimator. 

This person in question will not only calculate the cost of constructing your house but, at the same time, this person will inform you of the time it takes to make it happen. To ensure that the costs are relevant, the cost estimator will define the scope of your project. This information is essential as it determines what elements you require. And a cost estimator is vital as well. They will answer how to estimate new home construction costs.

Precise construction cost estimation reduces the possibility of delays and going over budget. It guarantees that the construction project will be completed on time and within your financial constraints. For builders building the house, it gives them proper direction on what to do first and last. For clients, it informs them what materials they require first. Keep in mind residential estimating services list all the costs. There are no hidden expenses.

Location

For clients, location matters when estimating new home construction costs. You must make hard choices of where you want your dream home. Moreover, it would help if you considered the climate and the community. Another factor that affects location is the land price and its quality. Here, quality refers to the area that is earmarked for construction. Location is not by principle but by necessity. It will influence your estimates for your residential construction project. For working on countless projects, our professional suggestion would be to move to rural areas, as building a home in a metropolitan area is expensive.

Here is an overview of the associated costs when it comes to estimating new home construction costs:

Material Costs

One of the critical aspects of how to estimate new home construction costs revolves around materials. This all depends on the scope of the project. Every material that goes into constructing your new home comes with a price tag. Not all people who place and install them carry a price tag, either. Your location is the primary benefactor of the material costs of the project.

Labor Costs

Labour is people who help construct the project. This is a significant aspect when estimating new home construction costs. Labor costs fluctuate as per region. There is no breakeven point when it comes to labour. It is all simple economics—demand and supply rules. From our understanding, labor costs are roughly 20 to 30% of the total costs of the construction project. An essential aspect of how to estimate new home construction costs.

Design Fees

The fees will remain non-existent if it is simple home construction with zero changes. However, you want to add custom features to your new home. These will factor in. These are the vital aspects of estimating new home construction costs. A designer or an architect can fulfil your dream and make it a reality.

Site Work

Site prep is a process to prepare the site for construction. You don’t want any delays. That is where cost estimates are beneficial. They give you a precise cost of what it takes for site prep. This is an essential step when it comes to how to estimate new home construction costs.

Contingencies

The most important aspect of estimating new home construction costs is your ability to mitigate risks. Building your new home is now an easy process. That is where cost estimates are practical. They help you create safety nets to protect your investment from unforeseen circumstances. As a leading construction estimator, we recommend you allocate 10 to 20% of your total budget to this. This is something we do when clients ask for cost estimation. This exercise is vital if you prefer to avoid paying out of pocket.

Costs of new construction per square foot by region

Here are the average construction costs around the country according to courtesy: The Home Guide

Northeast: $155 per sq. foot

West: $131 per sq. foot

Midwest: $109 per sq. foot

South: $100 per sq. foot

What is the price of building a new home by state?

The costs listed below are rough estimates. These are for a 2000-square-foot house in each state.

All figures are in USD.

Final Thoughts on how to estimate new home construction costs

This information was compiled using a simple Google search. These are ballpark numbers, not precise estimates. We only give you an idea, so take this information with salt. For precision cost estimation of what it will cost for a 2000 sq. foot house in any state, CSI estimation is here to help.

This article aims to answer your query on how to estimate new home construction costs. But this is only the start, as this article is only part 1. I would rather not bore you with a 5000-word article. Instead, I’ll break it down so you can take the information in doses. For precise estimation for new house construction, CSI Estimation is always ready.