We all have a dream home in mind. It’s something that’s been on our mind for years, maybe even decades. If you’re reading this article, there’s a good chance that you plan on turning this dream into reality. But before that happens, you have one very important question in mind…
How much is it going to cost me?
That’s understandable. A new home is a massive investment. In fact, it’s probably the biggest investment that you’ll make in your life. Simply put, you want to know if you can afford to turn this dream of yours into reality right now, or if you should wait and save a bit longer.
How Much will it Cost?
Unfortunately, there’s no single answer to this question. A contractor that can give you an exact price upfront will just create problems for you and his company. This is because there are several factors to consider including the following:
- Labor wages.
This is a labor-intensive industry. Your chosen contractor will hire workers, and the labor industry will dictate how much they should be paid at the time of your project. This means that a home constructed last year may be cheaper than a similar home constructed this year simply because labor wages are higher this year.
- Cost of materials.
What are your chosen materials for the walls, flooring, tiles, etc? You’ll have several options for materials and their prices range from low to high. This is why if you’re on a budget, an experienced contractor should be able to recommend a more affordable material.
Your location also plays an important role. What’s the soil condition in your location? What’s the overall construction site condition? In addition, are the materials readily-available in your area or do they need to be shipped?
- Project duration and schedule.
The longer the project duration is, the more expensive it can become. There’ll be additional indirect costs and inflation can also kick in. This is why when talking to a contractor, talk about the project duration and schedule.
- Plans and specifications.
There’s a good reason why you should pay good money for plans and specifications. A well-designed plan with very specific specifications will improve the efficiency of the project as it’s done. Execution at the site will be top-notch. Confusion and miscommunication will be minimized, if not eliminated.
- Permits and insurance requirements.
These cost money as well. Depending on the requirements for insurance and permits, the cost of your home construction can be higher.
What’s a Good Estimate?
Based on our experience, we’ve put together the following estimates that should give you a good idea as to how much your home construction is going to cost. For more details, you can download our Probable Construction Cost Computation for free. Click here to get it!
You can also contact us for more details. Talk to you soon!