Cost per square foot

The cost per square foot in home building is typically calculated by dividing the total cost of construction by the total square footage of the home. This number is mean for a simple understanding of cost at a high level.

To calculate the total cost of construction, you would need to consider all the expenses associated with building the home, including the cost of design, permitting, utilities, labor, materials, and any other expenses incurred during the construction process.

Once you have determined the total cost of construction, you can divide it by the total square footage of the home. For example, if the total cost of construction is $550,000 and the home is 3000 square feet, the cost per square foot would be $183 ($550,000 ÷ 3000 sq ft = $183/sq ft).

It is important to note that the cost per square foot can vary widely depending on factors such as the location of the home, the site conditions, the complexity of the design, the quality of materials used, and other factors that can affect the cost of construction. Therefore, it is important to consider all these factors when calculating the cost per square foot for a home-building project. We have estimators who can guide you through the cost-estimating portion of home building.

To calculate the total cost of construction, you would need to consider all the expenses associated with building the home, including the cost of land, labor, materials, permits, and any other expenses incurred during the construction process. Cost per square foot only works if the size is the only thing that affects costs. While size is a major factor, there are many other facets to consider when calculating costs.

Shape of the house

The shape of a home can have a significant effect on its cost. A more complex or irregularly shaped home can be more expensive to build than a simple rectangular or square-shaped home. This is because irregularly shaped homes may require more complex framing, roofing, and foundation systems, which can increase the cost of construction.

For example, a home with multiple rooflines or curves may require more complex framing and roofing systems, which can increase the cost of construction. Similarly, a home with an irregularly shaped foundation may require additional excavation and foundation work, which can also increase the cost of construction.

In addition, the shape of a home can also affect the amount of exterior walls and roof area, which can impact the cost of materials and labor. A home with more exterior walls and roof area may require more siding, roofing, and other materials, as well as additional labor to install these materials.

Site Conditions

Access to the site: If the site is difficult to access, such as if it is located in a remote area or if the road leading to the site is narrow or steep, it can increase the cost of transportation and delivery of materials and equipment.

1. Soil conditions: The soil conditions on the site can impact the foundation design and type, which can affect the cost of construction. For example, if the soil is unstable or requires significant excavation, it can increase the cost of footing and foundation work.

2. Topography: The topography of the site, such as if it is steep or has significant elevation changes, can also affect the cost of foundation work, as well as grading, excavation, and drainage work.

3. Utilities: If the site does not have access to utilities such as water, sewer, and electricity, it can increase the cost of bringing these services to the site.

4. Zoning and building regulations: Zoning and building regulations can impact the design and construction of the home, which can affect the cost of construction. For example, if the site is located in a floodplain, it may require additional construction measures to protect the home from flooding.

Overall, site conditions can have a significant impact on the cost of construction. It is important to evaluate the site conditions and factor them into the cost estimation to ensure that the final cost of construction accurately reflects the unique challenges of the site.

Is building cheaper than buying a used home? Maybe. Here are a few reasons why:

1. Control over costs: When you build your own home, you have control over the cost of materials and labor. You can shop around for the best deals on materials and find contractors who are willing to work within your budget.

2. When you buy a used home, you may need to pay extra for upgrades or renovations to make it suit your needs. When you build your own home, you can include the features and finishes you want from the beginning, without having to pay extra later.

3. Fewer hidden costs: With a used home, just like a used car, there may be hidden costs that you are not aware of until after you purchase the home. For example, you may need to replace the roof or repair the plumbing. When you build your own home, you can plan for these costs from the beginning and budget accordingly. Resting easy they are brand new and warranted.

4. No need to pay for someone else's improvements: An used home may have features or finishes that you don't want or need, but you may end up paying for them anyway. When you build your own home, you only include the features and finishes that you want, which can save you money.

Overall, building on your own lot can be a cost-effective way to create the home of your dreams while avoiding the extra costs and surprises that can come with buying an existing home. Reach out today to talk with our sales manager about how Keel Custom Homes can help you bring your dream home to life!

Let us know what questions you have, we’d love to discuss more.

Fixed Cost vs. Cost-Plus Contracts

A fixed-price contract in homebuilding is a type of agreement that outlines the total cost of a home construction project before work begins. This type of contract specifies a set amount of money that we will charge to complete the project, regardless of any changes in materials or labor costs. In this agreement, builders add on a profit in the 20% to 35% range, then another 5% or more for variances in this type of agreement.

This type of contract offers homeowners the advantage of knowing the exact cost of their homebuilding project upfront, which can help them budget and plan accordingly. But, it puts more risk on the builder, who is responsible for completing the project within the agreed-upon budget, and any cost overruns are their responsibility - hence the 5% or more variance charge.

A cost plus home building agreement is a type of contract where the builder charges the homeowner for the actual cost of materials, labor, and other expenses, plus a fee or percentage for the building service. The fee is negotiated upfront and can be a fixed amount per item or a percentage of the total cost of the project.

Unlike a fixed-price contract, a cost plus agreement does not specify a set price for the project, which means the final cost can vary depending on the actual costs incurred during the construction process. This type of agreement can offer flexibility and transparency, as homeowners can see exactly how much is being spent on the project.

Keel Custom Homes operates very efficiently with lower profit margins than larger building companies. We do this because we do not hold large amounts of land inventory, build model homes, have standing inventory, advertising programs, etc. Our overhead is mainly just the staff it takes to build homes and provide its customers an excellent experience.