Estimating Home Construction Costs Can be Difficult

Estimating home construction costs can be an intricate and complicated process. Whether you are utilizing a software program or a pocket calculator, the work and considerations involved are typically the same. In order to estimate the cost of construction, the "soft" costs and lot price must be ignored. This includes appraisals, inspections, permits and developmental impact fees. The final cost of work will generally be limited to the actual materials and labor associated with building the structure.

Step 1 - Take the time to view recently completed home construction projects that are comparable in style and size to the one you are interested in building. Take location out of the equation. Figure out what the sale price is and subtract land costs and "soft" costs from the total. As an example, say you find a 1,500-sq. ft. home selling for $300,000, the sq. ft. cost will equal $200. Let's also say that the lot price was $50,000 and total "soft" costs totaled $10,000. With these figures, your total will be significantly less. The process above will provide you with an idea of what size home you will be able to afford and which materials you should use to suit your budget.

Step 2 - Make certain to make a list of detailed notes when you are viewing these homes. Take a look at the wall materials, flooring and kitchen materials along with the number of floors, the type of roof and the various types of appliances that come included. Speak with a home construction contractor and inquire about which materials come standard as opposed to extras that might happen to be included with the structure you are currently viewing.

Step 3 - Educate yourself in regard to home construction design plans to help you obtain an idea of the style you are interested in building. These days, there are literally hundreds of online sites to help you determine your needs, style and budget.

Step 4 - Find estimates for materials and labor from subcontractors. Get in touch with plumbers, electricians, drywall installers, carpenters and window services to obtain quotes based on your initial design plans. You may even consider choosing a general contractor to take care of the entire project. If you end up going this route, be sure to have them break down the project into individual jobs to help you compare the costs.

Step 5 - Once you've gathered all of your information, plug it into a cost-estimation software program. Many of these programs come with myriad high-end to low-end options complete with cost estimates. Some will ask for specific materials dollar amounts. Others might provide estimates specific to the types of materials chosen. These programs can also take additional factors, such as climate and location into account to help you gauge potential insulation costs.