Can You Afford to Build Your Own House? Here’s How to Decide

Have you ever dreamed of building your own home? If so, you may have shaken that dream off thinking it was out of reach, but what if it’s not?

As home values soar across the country, it may be the best time to build your own house. The cost to build differs greatly depending on a large number of factors, and looking at numbers from groups reporting the average cost adds confusion.

For example, Home Advisor places the average cost to build a home at just $297.953, while the National Association of Home Builders puts that number higher at $485,128. With the figures being so different, it is important to look at individual needs and costs.

And that is exactly what this article will help you to do, so read on to learn whether it is right for you.

Custom House Cost

There is a lot to consider when you are planning to build your own home. The individual expenses for everything you will need add up, and if you aren’t prepared, it is easy to become overwhelmed.

Costs include:

• Plot of land
• Electrics, plumbing work, water
• Building permit
• Excavation and foundation work
• Architect and engineer drawings
• Hiring builders and equipment/heavy machinery
• Land inspections
• Exterior work
• Interior work
• HOA fees, insurance costs, and taxes

With all this in mind, the custom-house price tag is likely to start shaping up to an accurate estimate of what the total cost will be.

Is it Cheaper to Build Your Own House?

If you have totaled up costs and estimates for the previous list, you should have a clearer idea of what you will be expecting to pay. Of course, be prepared for this number to change as work progresses because outside factors are often unavoidable.

Take a look at some realtor sites and try to get an idea of the average price for square foot for properties in the region you are planning to build. This will help you to see whether building your own house will be a cheaper option.

Keep in mind that many older homes are not built as large as more modern homes today, so this will have an impact on total house costs versus building your own.

And importantly, when considering building a home versus buying a pre-built home, price differences are most apparent in two distinct areas: upfront costs and maintenance fees.

The upfront costs on a new build will be more as you need to put forward more of your own money and secure necessary loans prior to having any actual work done. But the maintenance costs will be virtually nill with the property being new and everything in it.

Some builders even provide a 10-year warranty on the building, meaning you will have a decade of freedom where you won’t be spending on maintenance of your home.

Build Your Own House?

If you are considering building your own house, there are a few more essential tips for you to consider when weighing up your options.

How you use the space is important. Bathrooms are the most expensive rooms to build, so consider if you really want or need to have more than two in your new build.

Help will save you money in the long run. If you take on every aspect of building your home alone, it is likely that mistakes will be made. It doesn’t matter how much experience you have, having multiple eyes and arms to lend help will ensure everything goes according to plan and in good time.

Dan Peterson Construction Inc also recommends paying attention to your HVAC system when building a home, as the failure to do proper HVAC planning can lead to the development of mold.

Negotiation is your best friend in building a new home. It is fair for you to try and bargain on prices of most aspects of building a new home, from materials to employing building services.

With all of these steps in mind, you will save a considerable amount of money, so don’t be afraid to implement them.

Ready to Dive In?

We hope that this article can give you a good foundation when it comes to determining how affordable it is to build your own house. If you need more help, revisit this post.

And for more details on how to build your own house and more, take a look at some of the other articles on the blog.