New custom home building costs?

5,923 Views | 60 Replies | Last: 4 yr ago by Who?mikejones!
Scotts Tot
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Hey folks - I would appreciate some input on home building costs. This is something we would like to do in the next five years or so, and I have no real frame of reference for what we should expect to spend. We're in the Fort Worth area, and the new build might include a tear-down.

Really appreciate any feedback.
evan_aggie
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Demo $10-$25.

Builders are 15-20% fee in most cases. Builds $175 (basic basic) to $300 ft in high dollar neighborhoods.

10-14 month build times.
Scotts Tot
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Very helpful, thanks!

I'm assuming in your numbers the builder fees are separate and not included in your building costs, so the math might look something like

4000 sf x $250 = $1m + 20% = $1.2m all-in
evan_aggie
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Builders are usually upfront about their %.

$300 is likely to include their fee.

A 4000 ft house might be a little cheaper per square ft to build than 3000.

$1.2M is probably at the higher end. It also depends on where you are located. But I would assuming $900-$1.2M in most cases just to give you a reference point.
1988PA-Aggie
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As a cabinetmaker, mostly doing renovation work, I cannot speak accurately of new home costs.

But when your project comes around, a frank discussion with the builder on what level of materials are being used is necessary. Foreign (chinese) made materials are so common these days we sometimes don't delve into the source. While your new house will have hundreds, thousands, of decisions to make, there is a hierarchy on what you should spend a few more bucks on. I live in an area of PA that has many 'builder's grade' homes going up. I tend to work in 100 yr old homes, and see the quality from years ago. But when I work in a 'builder's grade' home, I have seen problem areas that continually crop up.

Plumbing: I don't think it is necessary to spend lots of money on a sink, it is a vessel. But valves, fittings, water lines, etc throughout the system is an area where quality is necessary. I have seen some of these fail in 7-10 years and every time it is a box store origin which probably means chinese made. Plumbing failure...well, sucks. I don't think it is unreasonable for the builder to ensure they come from a local source. And don't put a tub in your master bath, every woman thinks it is great, no one uses them.

Kitchen: cabinetry is one of the largest markups for builders, typically 50% but sometimes 100%. Working with a builder that requires you to go only with his sources, may make me suspicious of his markups or kickbacks. Working with a local custom cabinetmaker who may have lower overhead is sometimes the same price as a good 'stock' cabinet after all the markups are added. Dealers who sell chinese made cabinetry, it's awful, they use glues and finishes that have so much formaldehyde, it takes years to out-gas. I could talk cabinetry for hours but I will leave it there. Let me know if you need more guidance.

Construction: one pet peeve, is solid doors vs. hollow doors. Your bedrooms, office, bathrooms, need solid doors, whether they are solid wood, or solid MDF (acceptable if painted of course). Related, sound proofing...spend a few bucks on some level of sound proofing around your bathrooms or bedrooms. It depends tremendously on the layout of the house, but sometimes just an extra layer of drywall can inexpensively help.

Assistance: lots of decisions to make. Depending on you/spouse situations with kids, work, decision making ability, reaching out for help (decorator/designer) can be money well spent. If you tackle this yourself, as the building is going on, you may be buried under hundreds of decisions to make...it can test a relationship like you have never seen. The more decisions you can make in advance, the better. If you go the route of decorator (picks out finish stuff....carpet, flooring, wall color, etc.) or designer (lays things out like kitchens, bathrooms, etc.), make sure you go see their stuff in person and get testimonials. I have seen several of these people take credit for stuff on their websites that they did not do, or only did a tiny portion. Make sure your personalities work.

I know this list can go on and on. But just wanted to throw my two-cents in for some of the areas that I see that builders are getting really cheap on.

Scotts Tot
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Thanks for taking the time to do this write-up! Very helpful stuff. I'll save this post for a reference down the road when the time comes.
Scotts Tot
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Yep that gets me in the ballpark, thanks!
musicforall
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Wow 1988PA-Aggie, you got any more good insider tips?
10andBOUNCE
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We're in the home stretch of our custom build south of Fort Worth (rural). We had to endure some spikes in the different markets, specifically lumber. We should be all in at about $200/sq foot for air conditioned space. Including 2 car garage and 660 sq feet of under roofed porches total foundation) we are at $135/sq foot. I would say it's probably a middle of the road custom home - nothing over the top fancy but definitely not all builder grade either.

All I will say is that cash is king. We were fortunate to have saved up a lot of cash (didn't expect to use as much as we have) but if we did not have it available I am not sure what we would have done. If you don't have both your financing easily secured and a pile of contingency cash set aside, I would say you're not ready yet for a custom job.

Amen to the testing of a marriage. I would also look into a designer to help along the way if that is not something your builder provides. Too. Many. Decisions.

I would say to start drawing up some plans. Once you have plans, sit with them for a while. See if you still like them in another month. Adjust and repeat. Get ride of wasted space. Put everything on your plans - don't assume you just change details when that phase starts.
Who?mikejones!
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Framed sqft or conditioned? Which measurement will your builder be presenting the price as?

I dont know what dfw is going for but a truly custom home will be tough to get below $300/framed sqft

I'll give you the same tip I give to others-

Spend your money on the envelope- roofs, windows, ac, insulation. Countertops, flooring, etc. can all be upgraded later relatively cheaply.

The cabinet maker makes good points. Definitely ask about the materials being used. The market is crazy right now and it's forcing some builders to lower costs by using lower quality materials. It might be they can't get the same materials.

Good luck.
1988PA-Aggie
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I am a woodworker and custom cabinetmaker. Been doing it since class of '88 so have done my share of interesting stuff. Used to work for a family business doing several kitchens per month in and around NYC. Pretty high dollar stuff (worked for JLo, and Stephen Colbert back when he was normal). Have my own business now, small, can't find anyone who wants to do this stuff anymore...going on TexAgs is one of my only ways to 'give back' and help others.

Kitchens are a specialty, I do them start to finish...design, build, finish, install...one at a time of course. But bars, kids' lofts, mantels, bathroom vanities, and some furniture are all in my wheelhouse.

Let me know your questions. I sincerely like to help others do their own projects, they get satisfaction that is indescribable. I don't post a lot on TexAgs, but Home Improvement...I have posted a bit...and yes, I can get wordy. More info better than less.
GrimesCoAg95
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The $/ft metric is not always the best metric. Let's say you build a 4000 sq ft home with a 3 car garage, covered back porch with outdoor kitchen. You have to absorb the sq ft of garage and porch into the cost of the finished feet. As garages get bigger and outdoor spaces get nicer, this gets even harder. A slab, framing, and roof cost what they cost. My garage has the same slab, electrical, drywall, roof, and paint as my living room, however, it doesn't have hvac, trim, and flooring. Porches have a roof and nice ceilings, but no walls.

I like to break it into three categories. Storage space, porch space, and living space. This is what I did when we built.

I tried to build at the following
House $x/ft
Storage .4 * house
Porches (covered only) .25 * house

So, lets' say you build a 4000 sq ft house with a 3 car garage and a 700 sq ft porch. Let's say you can build a house today for 200/ft.

With my estimates above, you are looking at 800k for the house, 60k for the storage (garage), and 37.5k for the covered porch. Add in the pool and outdoor kitchen if you desire.

All this to say, the $/ft discussion is very difficult as you add costs to the build that are not in the footage.

Who?mikejones!
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GrimesCoAg95 said:

The $/ft metric is not always the best metric. Let's say you build a 4000 sq ft home with a 3 car garage, covered back porch with outdoor kitchen. You have to absorb the sq ft of garage and porch into the cost of the finished feet. As garages get bigger and outdoor spaces get nicer, this gets even harder. A slab, framing, and roof cost what they cost. My garage has the same slab, electrical, drywall, roof, and paint as my living room, however, it doesn't have hvac, trim, and flooring. Porches have a roof and nice ceilings, but no walls.

I like to break it into three categories. Storage space, porch space, and living space. This is what I did when we built.

I tried to build at the following
House $x/ft
Storage .4 * house
Porches (covered only) .25 * house

So, lets' say you build a 4000 sq ft house with a 3 car garage and a 700 sq ft porch. Let's say you can build a house today for 200/ft.

With my estimates above, you are looking at 800k for the house, 60k for the storage (garage), and 37.5k for the covered porch. Add in the pool and outdoor kitchen if you desire.

All this to say, the $/ft discussion is very difficult as you add costs to the build that are not in the footage.




Yes, not all sqft is the same.

I liken it to car buying. You don't ask the price per pound.

tgivaughn
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Current rule of thumb is $150 x Total SF (anything with a roof or foundation)
Includes Builder & everyone/everything
Excludes lot, structural engineer if required, travel time exceeding 15-25minutes one way
Some items may be on backorder or to be substituted

Some reductions may be had for cheaper items but some of these will cost more in the long run.
Easy to spend more, so many temptations and rationale if a forever home.

If you can't do $150 then you may postpone Custom for your forever house later & today buy from Realtor, new or used.

"In 5 years" - judging from the past, there's no way we can predict future costs ... it was a rocky road.
Also, no one saw the mid-80's housing bankruptcies coming and gurus predict heavy inflation ahead.
Avoid barndominiums and Prefabs as solid investments, so no hedge there.

Preparation today might be to start then stop an Architect Spartan plan and read some from the book series The Not So Big House.

Update 02.11.22 Best bid ~$1million 7507 TotalSF, 5937 LivingSF just outside city limits College Station but lots of clearing costs = $133/TSF under what I suggested at $150 ... most seem to be misreading LivingSF obviously but if your only way is LivingSF, then do the math. Yes this is one of the top builders, if not THE top. I hope our design efforts also helped with costs.

We use TOTAL SF when designing within a budget - makes more sense in this era of huge porches & garages.
Short-hand answers here ... long-hand help here ....
http://pages.suddenlink.net/tgivaughn/
Who?mikejones!
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150/sqft?

No way. Not for a custom home, especially in the city.
evan_aggie
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Agthatbuilds said:

150/sqft?

No way. Not for a custom home, especially in the city.


Yeah. $150 was 4-5 years ago. That is out the window.

You can build it for $150 a ft if you do most of it yourself and choose basic finishes for everything.
Who?mikejones!
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evan_aggie said:

Agthatbuilds said:

150/sqft?

No way. Not for a custom home, especially in the city.


Yeah. $150 was 4-5 years ago. That is out the window.

You can build it for $150 a ft if you do most of it yourself and choose basic finishes for everything.


I dont think there's any way to build it for 150. I know a spec guy who builds at 185 and that is a bare bones house.

150 was a decade ago.
JP76
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Well I can tell you 2x4 studs have went up about 42 % in the last month
Who?mikejones!
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I saw lumber was predicted to go up 20% overall by the end of the year.
JP76
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Currently finishing up a heated 1200 sq ft project now that was just a shell. If you added in the dry in package, labor,slab, roof, septic etc it would be right at $165 excluding any builders or architect fee.

Not overly fancy as far as finish out but no corner cutting throughout every aspect
cavscout96
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3350 conditioned
~800 porch

Simple floor plan design
100% custom details with upgraded bones (engineered foundation, frame, floor trusses)
mid-high end appliances (didn't spring for Wolf and Sub-zero)
lots of custom cabinetry

all-in at $150/sf NOT including 1/2 mile road or repairing an old 3/4 ac. stock tank

We picked out EVERY. SINGLE. DETAIL including drawing the FP mantel, kitchen cabinets, and custom book cases myself.

DISCLAIMER*** does not include land price and we started before the lumber prices went completely stupid. We ate some increased lumber cost, but had most of the package on the ground before it went crazy and my builder waived the builder surcharge on lumber price increases. Essentially, I paid for the actual cost increase, but he did not add his typical builder fee to the increase.
evan_aggie
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Nice! What part of texas or town?
Scotts Tot
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Great info, thanks.
Scotts Tot
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One thing that seems pretty apparent from this thread is that there is a great disparity between building costs in more rural areas vs upscale urban neighborhoods. Why is this the case? Intuitively I would think it costs whatever it costs for materials and labor, whether it's in a nice neighborhood in town or 15 miles away out in the country. Do builders just apply a markup in these areas?
Who?mikejones!
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Labor.

Example-

My framer went from around 13/sqft to 23/sqft in the last 18 months or so.

His guys are demanding more pay because there's too much work and not enough skilled people.

It's like that for every sub right now.
evan_aggie
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Right. People pointing to the cost of lumber going 2x or sheathing aren't realizing that it might add another $45,000 to material but labor is probably $100,000+ more or greater even.

Rural builders may charge 12-15% fee and ones in cities are charging 18-25% in some cases with material markup.
Who?mikejones!
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My markup is the same no matter the location or category.
JP76
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Agthatbuilds said:

Labor.

Example-

My framer went from around 13/sqft to 23/sqft in the last 18 months or so.

His guys are demanding more pay because there's too much work and not enough skilled people.

It's like that for every sub right now.



$13 to $23 sq ft labor only for slab sq ft ?
Who?mikejones!
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Framed sqft

My b team framer is between 18-19 but he can't do the things my a teamer can
JP76
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Before lumber fell it was nothing for the increase to add $20-$30 per sq ft on the material side


Who?mikejones!
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I just got a lumber package bid back that came out just over 30/sqft
JP76
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Is this in Texas ?


Or up north ?
Who?mikejones!
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Tx
GrimesCoAg95
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AgthatBuilds,

Is that $30/ft for framed feet or finished feet? I am guessing framed feet. So just for structure is this close for right now?

Slab - 12-18/ft?
Framing package - 30/ft
Framing labor - 23/ft
Roofing - $250/sq.

Are those close?
Who?mikejones!
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GrimesCoAg95 said:

AgthatBuilds,

Is that $30/ft for framed feet or finished feet? I am guessing framed feet. So just for structure is this close for right now?

Slab - 12-18/ft?
Framing package - 30/ft
Framing labor - 23/ft
Roofing - $250/sq.

Are those close?


Slab 25-35
Yes
Yes
At least 400 per square for shingle
1000 for metal

Roofing is super inflated right now
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