Estimating Square Foot Building Costs the Wrong Way
The Kit Home Cost Equals 25 - 40% of Your Home Building Cost
While the percentages are different for every situation, the cost of the kit home package vs. the cost of completing your home will almost always be half or less.
What determines the percentage has everything to do with who's providing the labor, the cost of the land you're building on, the money it takes to add or connect to utilities, the cost of architects and engineers, the cost of the loan, and your "home-building coach" fee.
Considering these things, you can see how the price tag on the packaged kit home is just part of a much bigger picture.
Research, Preparation, Price Tag
I encourage everyone I help to research, learn, and compare wisely. Make sure that when it comes time to ask for prices, you're evaluating similar offerings. Once you're serious about building, part of your preparation should be to find a home-building coach who can help you analyze and calculate.
After you've prepared, calling for prices on packages is more productive. You'll not only be able to compare package prices from one company to the next but you'll be able to see the relationship of its price to the entire building project.
Only then does the price really mean something. Now you're on the right track! Keep reading and learning.
When building a new house, whether you are contracting it yourself or having it built, most people want to know the "square foot building costs." The question always makes me cringe. In reality, it's almost impossible to provide a standard cost per square foot to build a house. The problem stems from the definition of standard. Homes, even of identical size, have many, many variables that factor into the costs. Thus, the overall cost per square foot will vary, sometimes dramatically. For example, when someone says it costs an average of $100 per square foot to build a home these days, does that mean a home with a basement and an attached garage? Or does it mean the finished square feet only?
There are many other variables besides the obvious noted above. Consider the following:
The foundation. You may wonder how much it costs to build your home with a basement foundation rather than a concrete slab. Many factors come into play here. Is the basement going to be poured concrete walls or concrete block? How much of the basement walls will need to be concrete and how much frame? Is extra grading required for the basement? Since land is inherently unique, the amount of grading for a basement will vary, so there's no standard cost you can assume here.
The framing materials and techniques. What type framing is planned? Is the structure pre-fabricated or stick-built? Does the plan call for floor trusses or floor joists? Does the house have an elaborate roof system with many dormers and gables? Differences in construction methods, material costs, and contractor fees all add up to differences in price per square foot to build the home.