Detailed, powerful, and easy to use, Resi-Cost’s patented construction cost estimating software provides a full breakdown of home building costs and the ability to instantly allow you to give your contractor’s bid a “reality check”

Never before have you had the ability to accurately, easily and quickly determine the construction cost of building your dream home and if needed, know what to revise to bring it back in budget.

Resi-Cost™ Full Function: Home Cost Estimating Software:

Resi-Cost™ provides detailed cost reports.

This is the same construction cost estimating software used by professional builders and architects.

Construction cost estimating software features:

• Explore the cost impact of different design and material choices.
• Over 4,000 home design options
• Room by room special finishes, cabinets and tops
• Detailed cost reporting for every building system
• Proprietary 40,000 zip code costing database
• No software to buy and install
• No blueprints needed
• Estimate at any design stage
• Stop and come back anytime

Gain cost control. Build or buy that dream home today.

Carl

Just bought your book and think it is great. I’m wondering if this statement, currently on your website, is true today: “You should be able to build anywhere in the USA for $80.00 to $110 per sq ft. for labor & materials.”

It seems rather low to me. We’re looking at housing in Western North Carolina and some of the new construction is $200 per square foot  for what we think is mid-level construction/finish/appliances.

Ron

Hi Ron,

Here is a chart with the latest per sq ft building costs stats from NAHB (National Association of Home Builders).

It provides an instant look at both the Median average cost per sq ft. and the Average cost per sq ft.

Median average cost per sq ft = 1/2 of all the homes cost more to build and 1/2 cost less.

Average cost per sq ft = total per sq ft costs of all new houses built divided by the number of new houses built.

Click on the logo to see chart:

As you can see, $80 – $110 cost per square foot is above average.

Note: The figures in the chart above include the General Contractor’s Profit & Overhead, but NOT the land cost.

I don’t have enough information from you to determine what the $200 cost to build per sq ft you refer to actually means.

I have a feeling that $200 per sq ft is a quote from a builder who has his profit and overhead built in, or is a retail price for a finished house that has land cost (price) included as well.

In Charlotte, NC, a city I am very familiar with, $200 per sq ft is pretty heavy with amenities.

Of course, it is dangerous to generalize. Home building costs per square foot depend on many variables, including; size, home design, how good a shopper you are, difficulty in building site access” (i.e. the top of a NC mountain), availability of labor and/or materials, just to name the major ones.

Whatever cost per sq ft you end up with should always be measured against what the finished value will be in the locale where you are building.

A good Realtor (or an appraiser) can tell you if you are overbuilding (cost wise) for the area.

Overbuilding is not wise and unless you are paying cash for the house, you won’t be able to borrow as much money as you would probably like to borrow.

Construction Lenders, now more than ever, are very, very resale conscious. You should be too.

Visit my “Getting Started” page on http://www.byoh.com/ and play with the cost to build calculator.

Hope all this helps,

Carl

This one level home is perfect for a Sunbelt region. Steep pitched hip roof and stucco walls add to the curb appeal.

A Lanai (a veranda or roofed patio) and an isolated guest or teenagers bedroom with an adjacent full bath make this house plan a winner.

• 4 bedroom, 3 bath, 2-car Front entry garage
• Total Square Feet: 2501
• Footprint: 67ft. 4in. x 74ft. 8in.
• Standard Foundation: Slab
• Exterior Stud Type: concrete block 1st Floor Square Feet: 2501
• Estimated Cost To Build by HDA in Postal Code 75201 is $300,120, or $120 per sq. ft.
• This cost includes a General Contractor’s profit and overhead
• Estimated Cost to build this House using  the  “Residential Building Cost Calculator”, from Craftsman Book  Co is $287,200, or $115 per sq. ft. including the General Contractor’s markup of $33,394
• These costs do not include land or land development costs

HousePlansAndMore.com by HDA, Inc.PLAN # 592-055D-0500

You should keep in mind that the cost to build for this home plan, or any house plan, can vary considerably depending quality of materials selected, and on actual bids from builders.

Until you actually start getting bids from General Contractors it will remain approximate.

Carl

Why would you want to know how much it costs to build a house or how much profit a builder makes?

Why wouldn’t you? Knowledge (information) is power.

When you know the cost of building a home before you even decide whether to build or not, you are in a better position to decide what size, style, and quality of home you can afford, based on your budget of course, and you are also in a better position to later bargain with a builder.

Before you spend money on home plans for a house you can’t afford, I’ll show you how you can determine what you can afford.

The basic cost to build a house is determined by the size (square footage of living area), design (shape), and the quality & quantity of the materials (and the builder’s profit & overhead)

Here’s a recent letter I received that typifies the dilemma that most people face when trying to decide what to do when it comes to building a new home.

NOTE: This analysis of the cost to build a house will not include the land, any land development cost, or any financing costs.

From: David  North Carolina

Carl, We are in the process of designing our house and I’m trying to get a cost estimate of what this house will cost us before we go get plans drawn of a house that we can’t afford.  We basically have designed a 40 X 50 rectangle shaped house around 2040 sq. ft. living area with brick veneer, and with vinyl eves.

It will be a 1 story home with a huge unfinished bonus area in the attic to use as storage. It will have an attached 2 car garage with an 8ft. concrete wrap-a-round porch on the sides and the front.

Any information on how much does it cost to build a house of this type would be greatly appreciated.
David

Hi David,

You are wise in trying to determine affordability before spending money on home plans.

I learned that the hard way on my very first house when I had to “toss” the plans I had already purchased and go back and start “at the beginning”, right where you are. But I didn’t have available the “tool” you have.

The cost to build a house is determined by the size (square footage of living area), design (shape, etc.), the quality & quantity of the materials used and the builder’s profit.

Using this excellent tool called the “Residential Building Cost Calculator”, from Craftsman Books, leading experts in construction cost estimating, you can solve your dilemma.

Let me walk you through the cost estimating process using this tool. It is not only an easy and fast process, it is fun.

Image courtesy of  Houseplansandmore.com

The first question you will be asked is “How many corners does this home have?

The more complex the shape of the house is, the more expensive it is to build per square foot of floor area.

The second question you will be asked is “What is the total living area of this house?”

Larger new houses cost more to build than smaller houses but larger homes generally cost less per square foot than smaller homes.

Ranch style (single story) homes cost more per square foot than 2 story homes of the same size and quality.

The third question you will be asked is “What is the quality class of this home?”

New homes vary widely in quality and the quality of construction is a major cost variable.

For the purpose of a preliminary cost to build a house, to see what shape, size, and quality you can afford, I recommend choosing the “Quality Class 6” all the way through, for all choices.

If it turns out you can afford a certain style and size, you can always upgrade your choices!

Now you’ll answer just a few more quick questions and then you’re done.

Is there an attic, balcony, basement, garage or exterior porch?

Is this home in a housing tract?

Is this home built outside the metropolitan area?

What heating and cooling does this house have?

How many fireplaces in this house? And, is it a one story home or multi-story?

What State and Zip code?

You now have a rough estimate of the cost to build a new house based on your input.

Is the cost to build estimate on target? GREAT! If not, start over. It’s FREE and it’s FUN!

Well David I came up with a total cost of $237,607, for a 2,040 sq. ft 1 level home (not the house in the above image) with wrap around porch, central heat & air conditioning, 1,500 sq. ft of unfinished attic space, excluding land, but including the Builder’s or General Contractor’s Markup of $29,579.

Click on image to enlarge.

Good luck,
Carl

We have a budget of $300,000 for our new home.
When we deduct the amount we still owe on our land ($55,000), we have
$245,000 remaining with which to build.

Do we have to deduct the amounts for the well, septic, etc. before determining the amount we have to build the actual house? Or does that all get included into the cost per square foot?

I hope this makes sense.
Thanks
Marsha

Carl, I was looking at the two websites you suggested that have the Free Cost to Build Feature and was wondering was is included in the estimate. Are kitchen (cabinets and counter top), bathrooms and floors included?

Is this the estimate price for the bare walls? It is something to take into consideration when planning a budget because if those things are not included, well, you have to add quite a few dollars to that estimate.
Thanks,
Danny

Hi Marsha, Hi Danny,

Two questions, one answer.
These questions come up all the time and apprehension over what is and what is not included in a typical home building cost estimate is normal.

Here is an image of a cost to build estimate I did for the Sacramento, CA home.

Click on image for a larger view

As you (both) can see, other than specialty items or upgrades (i.e., Geothermal Heat/AC), the items mentioned by both of you are included.

You should keep in mind that the cost to build for this example, or any house plan, can vary considerably depending quality of materials selected, and on actual bids for labor and material.

The estimate for this house is an approximate one based on “average” quality materials and a slab foundation.

Until you actually have home plans and go out and get actual bids, all you will be able to have is a rough estimate of the cost to build your home(s).
Good luck to both of you,
Carl

Are permits usually included in the total cost? If not, what is an approx cost for permits?
Cynthia”

Hi Cynthia,

Yes, permits, and fees, are included in the cost to build for all homes in all states. The cost of permits and fees will vary widely from state to state and from locale to locale within any given state.

The cost of permits and fees can range from a few hundred dollars to several thousand dollars.

A phone call to your local building inspection department can give you a run down on what permits you will need and the approximate cost of permits and fees.

Permits are usually required for building, electrical, plumbing, HVAC, insulation, well, septic, driveways, grading, etc.

Fees are required for water and/or sewer tap-ins, and any other services provided by third parties.

HOUSEPLANS.COM – PLAN 18-1036

Here is a “Breakdown of Building Costs” for the  home above. Click on the image to enlarge.

The cost of permits and utilities for this new home was $2,410

You can use this  “Cost to Build Calculator” (It’s free!)  and play around with different house sizes and qualities.

Just as a useful tip, you’ll find it doesn’t cost much more to build an extra bedroom or two.

You will also find that it is easier to get financing on a 3 or 4 bedroom than a 2 bedroom house.

A 2 bedroom home will “take a licking” on the appraisal your lender will order.Always build for “resale”. Lenders are always looking at resale value, you should too.

Good luck,
Carl

Lisa”

Hi Lisa,

The $100 /sq ft average cost to build a house you keep hearing about includes everything, including the “Kitchen Sink”

$100 per sq ft however, is what is called the “Median Average” cost.

That means 50% of all houses cost more than $100/sq ft, and 50% cost less than $100/sq ft.

It is a good statistic for giving us a “snapshot” of the housing industry.

It is better than using what is called the “Mean Average”, where the total cost of all houses is divided by the total number of all houses built and the average cost gets “skewed”.

Here is a chart from the National Association of Home Builders depicting the median cost to build a house per sq ft for major geographical areas in the USA.

Note: MSA = Metropolitan Statistical Areas.

Click on image to see chart

In the 50% below $100/sq ft, you’ll find houses built for much less, such as in Tract housing.

Tract housing = housing consisting of similar houses constructed together on a tract of land.

In the 50% above $100/sq ft, you’ll find houses built for much more, such as in “Custom homes.

Custom home photo courtesy of The Pinnacle Group, Inc

Read my pages on “Cost Estimating” and Cost Estimating Explained” and you WILL have a clearer picture of this often (always?) confusing issue.

By the way, land and/or land development (Building site) is NOT included in any of these “costs per sq ft”.

Thanks for writing. You had a good question.
Carl Heldmann

My wife and I are struggling trying to decide if we should buy land and build a retirement home in the Pearce, AZ 85625 area. We hope to make a decision in the next week.

A local builder is quoting $105/sq.ft. I think that seem a little high based on information I have seen on your web site.

The most likely plan is shown below. Build site would be 10 acres, flat ground with a slab foundation and all tile floors.

Can you provide a quick estimate of what you think a “fair” cost to build would be?

The $105 figure is just the cost to build the house. I also believe it does not include a septic system which I estimated would cost around $4000.

If it has an impact – we will be strictly cash. No bank involved.
Your help would be GREATLY appreciated.

Keith & Kathie

Courtesy of monstroushouseplans.com

Monsterhouseplans.com/plan41-247

Total sq ft 1296, 3 Bdrm, 2 bath, 509 sq ft garage, slab foundation.

Hi Keith & Kathie,
What a nice looking home! I love stucco and Spanish design. I guess I’ll have to move to the SW.

At $105 per sq ft, excluding septic, I think your builder is giving you a fair deal as I wouldn’t contract a custom home if I couldn’t make at least $20 per sq ft, including the garage. At $105 per sq ft, I doubt if your builder is making $20 per sq ft.

Most of the information on my web site www.byoh.com/ concentrates on the owner builder cost of construction. That is, the owner being the General Contractor, saving approximately $20 -$25 per sq ft., or 25%.

Below, you will find a chart (see below) that gives the median national average cost of new construction (No Land) using a General Contractor. (Prices are still current for 2010)

Your General Contractor (Builder) is “Spot On”!

(Median national average chart. Click on image for a larger view)

Tip: Since you are actually acting as your own Lender for the Construction Loan, be careful how you pay your General Contractor.

Pay him (or her) exactly like the banks do, that is, for work completed and/or materials on the building site. Read my Chapter on Construction Loans in “Be Your Own House Contractor“, or on my “Construction Loan” page on my web site.

Good luck,

Carl

Thanks, Brent

Hi Brent,
I see your confusion. It confuses everyone universally and the answers actually vary from locale to locale.

In my “Cost to Build a House in Indiana” I show the example with an unfinished basement at $100.85 per sq ft, and with a finished basement at $63.38 per sq ft.

If the basement is finished in the same quality as the area above grade and with 2 means of ingress and egress in all habitable areas (excluding baths) then in most locales it can be considered heated living space (area) under roof and the “actual” square footage of the basement is included in the “actual” overall square footage.

For estimating cost, this is always accepted. But, for selling a house the house (if you ever do) you may have to separate the basement square footage from the rest of the house.
A local Realtor can advise you.

Water (well), sewer (septic), and all utilities are always included in the cost per sq. ft., with or without a basement. Garages are always included in the overall cost, but separated out when selling.
Clear as mud, right. Ha, ha.

Here’s another view from a friend and distinguished architect, David Moore

“Hi Brent,

There are 2 separate questions here.

The first question is, “How do you calculate the square footage area of your house?” The answer depends on where you’re located and who you ask: your tax assessor, a Realtor, an architect, or a builder.

To avoid confusion, it’s best to break out each type of area and calculate each type separately. Here’s a sample area calculation from one of our designs at http://www.originalhome.com/.
House Area (SF)
•Finished Floor Area: 2,770
•Garage Area: 788
•Basement Area: 1,344
•Covered Porch Area 217
•Deck Area: 210
The Basement area in this house is unfinished. If some or the entire Basement were finished, the area would be broken out separately.

If someone gives you a total area which is not broken out, ask them what’s included. Most areas are calculated to the face of the exterior wall. Double-height spaces including the top flight of stairs are generally only counted once, and Basement stairs are counted as finished area only if they are finished.

The second question is, “What costs are actually included in a ‘cost per square foot’?”. Again, the answer depends on who you ask and where you’re asking. In a rural area without sewers or city water, site costs vary widely and probably aren’t included in a square foot cost. In a suburban area with small lots and public utilities, site costs may be included.

To be sure you’re comparing apples to apples; always ask for a breakdown of what’s included.”

David Moore, Architect
Original Home Plans, LLC
http://www.originalhome.com/
203 389 8999 (9-5 EST)

I am concerned because we have never done this before and want to make sure the bid is fair.

I know our contractor is reputable. However, I am not one to go into anything blindly and like to double check before I commit to things.

How do I go about verifying the prices are in the right range for things?

Thanks for your help.

Brandi

Hi Brandi,

I have a few of questions for you before I can give you some tips or ideas.

1. What do you mean by, “verifying the prices are in the right range for things?” Do you mean the “allowances” the builder is giving you for items such as flooring, light fixtures, cabinets, countertops, etc.?

2. Did you get any bids from other builders to compare?

3. Will you be getting a construction loan/mortgage, and if you are, has the lender ordered an appraisal yet to determine what your house (with land) will be worth (market value) when it is complete?

4. Is the builder pushing for a quick OK from you?

Let me know the answers to these questions and I’ll try to get back to you.

Thanks for writing,
Carl

“Thanks Carl,

Here are the answers to your questions:

1. By verifying prices I mean more on the actually construction part of it like excavation prices, plumbing, sheet rocking, painting, cost of brick….those types of things. Our contractor has provided us with a spreadsheet that breaks down the cost but I don’t know if those costs are in the range of where they are supposed to be. I myself actually priced all the cabinetry, fixtures, appliances…etc and provided those prices to our contractor.

2. We live in a very small rural community so we have actually only met with one contractor because the others all do an hourly rate versus a total cost bid. We wanted to do the total cost bid versus totaling it as we went along

3. My husband is actually meeting with the appraiser today to do the “walk through” of the plans to get the construction loan. We already own our land.

4. He is not pushing for a quick OK, I’m just want to make sure we are on the right track because this will be the largest purchase/investment I have made and I want to verify we are making an intelligent and researched decision.

I don’t know if this will help too but were are building a 2 story 2730 sq ft house with 4 bedrooms, 2 full baths, 1 1/2 bath, a formal living and dining area, a family room, screened in porch, unfinished basement with a partial brick front and siding around the rest of the house.

The current bid price for everything is $372,000.

Thank you again.
Brandi”

Hi Brandi,

It is unusual that your General Contractor would give you his spreadsheet unless he is biding your job on a cost plus basis. Builders usually don’t show their clients their profit.

Of course, they can hide their profit on a spreadsheet by inflating the costs in various categories.

Anyway, that’s irrelevant to what I’m going to tell you.

I wanted to know if he was “pushing” because I think you need to wait for the appraisal before you make a final decision on anything.

Sadly, appraisals are coming in lower that people (and lenders) expect due to declining home values in the current housing market.

Almost NO area of the country has escaped this curse.

If the appraisal comes in too low for you, you can either trim costs that won’t affect appraised values, or wait until the housing market recovers.

If the appraisal comes in too low for you there are many cost items that can be trimmed without lowering the market value of your proposed house (resale value).

If this is deemed necessary, you can ask your appraiser for suggestions as to where to cut costs without lowering value.

Contrary to many TV shows, increasing the cost of items such as countertops, appliances, cabinets, floor covering, etc. does not increase the value of the house dollar for dollar; it doesn’t increase the value at all!

As to your 1st question, here’s a very rough guide that should help.)

Each category below, is shown with an AVERAGE % of TOTAL BUILDING cost based on statistics from the National Association of Home Builders.

These percentages are not “cast in stone”. They are a guideline only.

(I did the 1st category as an example:)

Permits, fees, surveys 1.5 % ($372,000 x 1.5% = $5,580)
Utilities 1.0 %
Excavation 2.0 %
Foundation, Labor & materials (L & M) 7.0 %
Rough lumber 10.0 %
Rough labor (framing) 10.0 %
Windows/Ext. doors (L & M) 3.0 %
Roofing, (L&M) 4.0 %
Concrete flatwork 2.0 %
Siding (L & M) 6.0 %
Plumbing (L & M) 5.0 %
Heating (L & M) 4.0 %
Electrical (L & M) 4.0 %
Insulation (L & M) 1.5 %
Water (or well) 2.0 %
Sewer (or septic) 2.0 %
Fireplace (L & M) 1.0 %
Drywall (L & M) 5.0 %
Cabinets (& countertops) 4.0 %
Interior trim (L & M) 3.0 %
Painting (L & M) 4.0 %
Appliances 1.0 %
Light fixtures 1.0 %
Floor coverings (L & M) 4.0 %
Driveway 1.5 %
Misc. 5.0 %
Total 100.0 % ($372,000)
(Category Description are from the my FREE Spreadsheets that are available on www.byoh.com/spreadsheets.htm

Here’s another spreadsheet’s version, also from NAHB.
(Click on image to enlarge)

If one cost to build category comes in higher than the percentage shown, something else will have to come in lower, or you will have to increase your overall home building budget.

People have different tastes and priorities on how to spend their money, and different building suppliers and/or subcontractors in different locales have different ways to get you to spend your money.

All this shows the importance of getting an appraisal before you get too far along in the planning process.

You don’t want to overbuild for a given area.

By the way, your current bid for $372,000 = $ 136.26 per sq ft.
This is higher than the national average, but custom homes always are higher.

You might want to read my pages:
Cost Estimating Explained
And
Cost Estimating

I hope all this helps,
Carl