The Numbers: A Breakdown of the Building Process
With the right team, the costs are surprisingly comparable between purchasing and building a home. Let's walk through a simple breakdown of the building process.
ESTABLISHING A BUDGET
To set a budget, most people enter a comfortable monthly payment into a mortgage calculator. Then, they take that loan and divide it across the cost of the alnd, the cost of preparing that land for building, and the cost of building the home itself.
LAND COST
Land prices vary depending on where and when you buy. An experienced real estate agent can help you select property that suits your lifestyle and goals.
LAND PREP COST
Preparing land for building is the most variable cost of the homebuilding process. Some land is forested and needs to be cleared, while former pasture fields may only need light grading. This property improvement process also incorporates establishing utility lines including sewage, creating access from the home to the existing streets, and completing all the research, surveying, and permit applying needed to begin home construction. An experienced builder can determine how much preparation your particular land will require.
HOME COST
The costof the home itself is the final piece of the budget. This varies by your desired square footage, finishes, and features. Working with a builder who adapts their existing plans to your specifications provides an efficient system to create a unique home without unexpected budget expenses.
How much do you need to budget for your land, preparing the site, and finally, building your house from the ground up? An experienced home builder will be ready to help answer all of these questions.
