Have you ever considered building your own home?
For many, this seems like an impossible task. For others, though, it’s a lifelong dream.
If you fall into the latter camp, you probably have a lot of questions surrounding the home building process.
For example, you might be wondering, “How much does it cost to build a house?” or “Is there anything I can do to reduce the cost while still getting my dream home?”
Of all the questions people have regarding home building, the question about cost is probably the most common.
Read on to learn more about how much building a home from scratch costs and how you can save money while building your dream home.
Factors That Influence the Cost of a House
Before getting into the cost of building your own home, it’s important to understand all the factors that go into determining the cost. Some factors that influence the cost include:
- The location of the lot (it costs more to live in a great neighborhood)
- The condition of the site (soil condition, utility conflicts, infected materials, etc.)
- Access to materials and how close they are to the site
- Your choice of architect
- Labor costs (labor is usually more expensive in urban areas compared to rural areas)
- The size of the home
- The number of stories the home has
- The types of fixtures and finishes used
- The shape of the home
- The type of roof used
- The type of appliances used
- Additional design fixtures (pools, outdoor kitchens, etc.)
The project schedule affects the cost of the house, too. The sooner you want it completed, the more expensive it will be.
How Much Does it Cost to Build a House?
Okay, so how much does it actually cost to build a house? The final price will depend on all the factors listed above.
On average, though, you can expect to spend between $151,556 and $440,233. The national average cost of building a home is $294,793.
Some people are able to build their homes for much less (as low as $13,000) or a lot more (as much as $750,000 and above).
How to Save Money While Building Your House
As you can see, building your own home isn’t exactly cheap. At the same time, though, it can be quite a bit cheaper than buying. The average cost of building a house in the United States right now is $218,000.
If you’re looking to save money, building your own house is the way to go. You can cut the price down even more by implementing some of these strategies.
Get Your Priorities in Order
Before you begin the building process, do lots of research to figure out what kind of house you want to build.
Think about what is most important to you and what you can live without. For example, maybe a big kitchen is a necessity, but you’re not really concerned about the size of the master bathroom.
Figure out your priorities so you know where to splurge and where to save.
Consider the Cost of Living
When you’re choosing the location of your home, it’s a good idea to calculate the cost of living before you make a decision.
If you really want to save money, it’s a good idea to buy a house in an area that has a lower cost of living. Be sure to think about things like the average home price, property taxes, and the cost of necessities like gas and groceries.
Sell Your House Yourself
If you have the time and energy to do so, consider selling your current house yourself. That way, you get to skip paying a real estate agent a commission and you get to keep all the proceeds. That can put a lot of extra cash in your pocket.
Get Bids from Several Contractors
Don’t just work with the first contractor you meet. Meet with several and get bids from each of them. That way, you can compare their rates and the work they do and choose the right person for the job.
Consider a Small, Open Space
It might be nice to have a big home. If you want to save money, though, bigger is not necessarily better.
One way to reduce the cost of your home is to build a smaller home and focus on an open floor plan. That way, it will still feel spacious even with relatively low square footage.
Use the Right Credit Card
Apply for a zero percent APR credit card when you’re getting ready to begin the home building prices. You can use that card for some of the purchases related to your house, but you won’t be charged any interest.
Use Online Retailers and Wholesalers
Shop online for furniture and appliances as much as possible. There are tons of deals available online, especially if you shop through online wholesalers. When you shop online, be sure to look for coupon codes, too, before you make any final decisions.
Source Your Own Materials
Talk to your contractor about sourcing your own materials like lumber and paint. Contractors often get good deals on materials, but it might be worth it to do your own research and try to get lower prices, too.
You might be able to get especially good deals if you buy at certain times of the year, such as during International Construction Week (ICW) 2019.
DIY When You Can
Finally, try to do as much as you can on your own.
Projects like the sink and toilet installation and laying your tile can really cut down on costs. You’ll also get to enjoy the pride that comes from doing home renovation projects on your own!
Learn More About Building a House Today
As you can see, there are a lot of factors that go into determining the cost of building a house.
If you’ve been wondering, “how much does it cost to build a house?” be sure to keep the guidelines discussed above in mind.
Do you need more advice on building your home?
You can save a lot of money by doing some of the renovations and construction yourself. Check out the DIY remodeling section of our site today for tips on how to handle these kinds of projects.