10 Things you need to know before comparing new homes and the cost per square foot
1 • Methods Used DIFFER
An all brick home may be hundreds of square feet bigger than the same home with siding! Was the second story high entry foyer included? It’s heated space but it isn’t “walkable” square footage. Such differences dramatically impact the homes reported square footage and thus its cost per square foot.
2 • What square footage was the price based on?
Basements? Attics? What if due to a sloping ceiling, you can only stand up in small portion of the attic? What porches, a deck, patio or the garage? If the garage space doesn’t increase a home’s square footage, why not build a 4-car garage? OK, a silly exaggeration, but any cost per square foot comparison is meaningless if the square footage of these areas is counted differently by various builders.
3 • What’s included in the price?
Builder A includes hardwood flooring, Builder B figures carpet. Builder C includes full sod and a generous landscaping allowance, Builder D’s price only includes grass seed. Was the concrete driveway included? It’s TRUE! Such factors don’t affect the size of your home but affect the COST per square foot.
4 • Land Costs
Did the cost per square foot include the homesite? A $25,000 lot represents $12.50 per square foot for a 2,000 square foot home, but $30 per square foot if built on a $60,000 lot! Subdivision covenants (i.e, full masonry front elevations) and community amenities such as walking trails and open space all have costs which are passed along to each homebuyer as higher lot prices.
7 • Your choices …
Because of expensive cabinetry, countertops, faucets, tile floors, appliances and plumbing fixtures, your kitchen selections alone could increase your home’s overall cost by $10-$20 per square foot! Also increasing cost without increasing square footage are: fireplaces, lighting, window treatments, and even paint- many charge $100 or more each time you change the paint colors.
8 • COST IS DRIVEN BY DESIGN
Since sophisticated roof lines and dramatic entryways don’t’ increase the home’s square footage, such homes cost more per square foot. Homes with higher ceilings or artful ceiling details cost more per square foot than homes with standard, 8-foot high flat ceilings. Carpet comes in 12’-wide rolls, so designing a room 12’-8” wide is more expensive due ns to the added labor costs for cutting and seaming the carpet and increased material waste. Pre-drawn home plans might cost $1000, or about $.50 per square foot for a 2,000 square foot home, while custom-drawn plans typically range from $2-$10 or more per square foot.
9 • The TYPE of home you build impacts cost
By stacking its two levels, a two-story home will have a smaller foundation and smaller roof than a one story home of similar square footage.
10 • The TOTAL size of the home
Costs such as permits, government fees and utility hook ups are constant regardless of the size of the home. Smaller homes still have a kitchen sink, dishwasher, range, microwave, etc- just like larger houses. Therefore the smaller homes are generally more expensive per square foot.
Moving forward …
We’ve all heard horror stories of builders who quote a low price per square foot and then hit the buyer with extras after the job is started. Have you thought about the cost per square foot of your new home warranty? Warranties vary by builder. Contact your builder for references!
So … do you really want the cheapest?
Even if it was possible to get fairly comparable cost per square foot info from multiple builders, are you going to automatically take the lowest price? how do you suppose the builder with the lowest price per square foot was able to do it?
When it comes to building, or even remodeling a home, like with most of life’s major purchases, you get what you pay for. So … if you choose to, use preliminary cost per square foot numbers to help you know if you;re “in the ballpark” budget-wise. But understand it’s just not a good way to compare builders and their homes.
We can give you a detailed and accurate cost per square foot … but
Since we offer a variety of home designs, building sites, personalization and finish selections for your home we invite you to visit us. As you make decisions, the variables are addressed and the ultimate price per square foot comes clearer into focus. THEN we can give you a cost per square foot!
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