Dear Carl,
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
