According to the National Association of Home Builders, over 1.1 million new homes will start construction in the U.S. this year. And people spend an average of $304,268 (or around $150/sq. ft.) to build a home (HomeAdvisor.com).
If you’re considering building a new home, but don’t know where to start, here’s a quick checklist of items to consider for your budget.
- Land. Your land will likely be the first expense for your new home and can vary based on the location of your lot within the subdivision.
- Plans and designs. You’ll need to pay for plans and designs—plus any modifications you make during the design or build process.
- Residential architect. If you plan to do a custom design, you’ll need to hire a residential architect—which can cost up to 15% of the cost of a new home.
- Home builder. This is the company that will actually construct your new home. The more customization, the more you’ll spend on the build.
- City permits and inspections. These are sometimes handled by the builder, so be sure to ask upfront.
- Construction insurance. This protects against situations like theft and vandalism of tools. It is sometimes provided by the builder, so check first before you buy.
- Water and sewer. This is especially important if you’re starting on rough, undeveloped land.
- Plumbing, electrical, gas. Not just your standard utilities, but also consider new “smart” home features—like whole-house wi-fi, programmable lights, and smartphone thermostats.
- HVAC system. Be sure to get a heating and cooling system that meets the size and demand of your home.
- Roof. If you’re considering special materials (such as tile or slate), make sure your Homeowner’s Association approves it before building.
- Appliances. The quality of appliances can dramatically affect your budget.
- Landscaping. Don’t forget the trees, shrubs, and grass—as well as drainage, grading, and sprinkler systems.
- Interior décor. This includes paint, doors, fixtures, ceiling textures, flooring, carpet, and even fireplaces.
- Final inspection. This ensures that the final house meets all municipal building and safety codes.
Building a new home in Kansas City? ReeceNichols can help you get started on your masterpiece.