Easily Estimate Your Cost to Build
ฝัง
- เผยแพร่เมื่อ 12 มี.ค. 2022
- When looking to buy a home it's important to check out every option available to make sure you get exactly what you want. With today's crazy high real estate prices many people are exploring the idea of building their own home. But how much will it cost? In this video a builder shares a quick way to estimate the rough cost to build a new home in your local area.
UPDATE: If you need more details on how to figure the cost number from the sales price...here you go: Use your local sales price number discussed as the "Revenue" number. Use 30% as your markup. Now go to the website below for the markup calculator and plug in your numbers to get your total cost. Remember, you will want to subtract the lot cost (20% of the sales price) from the cost number generated in the calculator. www.omnicalculator.com/financ...
Here's an example. Say your sales price figured from realtor.com is $400k. Plug $400k into the "Revenue" box and 30 into the "Markup" box in the calculator at the link above. Your total cost for the project will be $307,692 and builder markup of $92,307. The rule of thumb lot cost is 20% of sales price or $80k. So $307,692 minus $80k gives us the cost of labor and materials of $227,692. Remember, this is an initial rough estimated cost based on quite a few assumptions. Your accurate cost to build will come after bidding the project out to a minimum of three companies per budget line item. - แนวปฏิบัติและการใช้ชีวิต
![Supernova - aespa エスパ 에스파 [Music Bank] | KBS WORLD TV 240517](http://i.ytimg.com/vi/bepqfR-pxY0/mqdefault.jpg)
![[TH] 2024 PMSL SEA W2D4 | Summer | โอกาสสุดท้าย ของสัปดาห์สอง](http://i.ytimg.com/vi/aswciGrYovo/mqdefault.jpg)
I've been following you recently and you have incredible content.
However, if you have the time, please consider creating playlists so we can parse through your content systematically. For example, a playlist on how to buy land, step 1... A playlist on how to build your first home, step 1... So on & so forth. Cheers!
I'm still trying to wrap my brain around average sales price in the US being basically half a million and that if I wanted to meet that "recommended" 20% down payment that I essentially am dropping far more than the entire mortgage my parents had in the 80s. I definitely make quite a bit more than my parents, but the buying power is not even close.
Bro you only need 3.5%. which is exactly what part of the issue is
@@benchoflemons398 no one is forcing you to live under 30 mind from a city center. Move 45-1hr from the city and commute. It's your choice to have the convenience of a city close by and if you want that you have to compete with everyone else. That's why work from home had decimated the San Francisco bay area
@@benchoflemons398 I'm not sure what your point is. Would a shorter commute, all else being equal, make people happier? I'm sure, but I don't know what you're trying to get at by saying that? Like because it makes people happier to have a shorter commute, everyone deserves a shorter commute?
Your parents generation owned a lot more of the wealth in the population at the same age than ours. It went from over 20% with boomers and went on a trend down to what it currently is at 4%
I live in a very Rural area( Population :3000), and my Median home price is 496,000
Awesome & insightful - Westlake is a beautiful area (by the way) of Ohio! Your videos bring so much value👍🏼👍🏼
I already bought land, but with the knowledge that I'm going to need to sit on it for 5-8 years before I can afford to put a house on it but this is super helpful.
Hey Mike, ive been binging your videos for months now. Great content and thanks for this channel. Were thinking of building a set of 4-5 townhomes. Menards doesn't really have a house kit for that so ive been struggling trying to estimate material costs. Do you know any site that might? Also, would the openbookbuild class work for such a project? Thanks!
Thanks for this great walk-through! This great for making a hard decision, I'm looking into the buiod option for an investment property.
$181/sf. Something is happening here....why then south of the border u pay $35/sf brick n mortar thru n thru, and i mean thru n thru...(no cardboard box allowed)?
Well, i tell ya
...in the States, everything runs on credit and terms , now we r even considering 40 year loans in order to increase the house prices....what have we done to ourselves?
Absolutely love this style video! Can you do more floorplans! My wife and I are looking to build a modern farmhouse style in a few years. Would love to see a cost breakdown on a farmhouse style home.
Agree 💯
Now is the time, prices of services and labor is increasing.
Find the land, store materials, etc.
Save up
Take into consideration if you are looking at listings from companies like a DR Horton, this company uses an underwriter and while the sales price might reflect what the price sold for it will not reflect write-downs which is in effect them subsidizing the mortgage in part for either a number of years or a dollar amount which in effect is a lower sales price. They don't want to lower the price of the sale on the home because then it would create a comparable that then other homes will be compared to and it will continue to bring their homes down in price
Your videos have been a HUGE help to me. I'm in the beginning stages of this journey. I just put a contract on some land. The only issue for me with your course is that is really is geared for someone building in a neighborhood. I'm building on a rural lot on some waterfront property. Unfortunately you don't touch on many things I have questions on not to say your other info isn't transferrable. Thanks for sharing your knowledge!!!
Like what things do you need to know?
I’m doing the same thing as we speak
Same! My questions are more like can I have a well and solar and be off-grid, I’m in SoCal. Can I buy a 5th wheel and live on property during the build?
Good information. Thanks.
I agree with everything you said except bidding. I am fan of fixed cost GC. In my experience they are better to work.
Great video!
Great information thanks
Any idea what % of the cost labour accounts for? I want to build my own house entirely myself and most likely just sub out the basement/foundation work and most likely the electrical. I'm trying to get an idea of what I need to do so.
Thank you!!!
Very helpful ✨
Great video
Great videos
Very helpful! It's good to keep in mind the "30% builder markup" and the "20% land cost" is just estimate and is definitely different per situation. If the land has no utilities, would that be an additional cost added to the rough estimate of what it would cost an owner builder or is that usually included in the "20% cost of land"?
The 20% lot cost assumes utilities are on site…so yes, you would need to add that cost
Yes. I’m building on some farm land in Ohio. It will cost me $40K after buying the land to add utilities. (well, propane, septic system and electrical hookup)
Thank you so much!!
I’m hoping to build a 4 unit hurricane resistant home in Florida. I feel like it makes it a bit more complicated though, correct?
The building codes in hurricane regions do offer up different challenges and costs
If I contract out the excavation, cement, plumbing, electrical, and HVAC, and sheet-rock, but I do all the rest. In other words, I frame it, do the finish work, roofing, and paint and cabinet installing, and siding, how much can I deduct from the builder prices in my area (Denver).
It is a good basis but right now everything is priced so high and unpredictable I wouldn’t even consider building, at least not as a first time builder.
Awesome
Great video! I flew out to Texas this week to price out new houses. It has been very expensive to say the least. What do you mean by owner builder? Would I be the one building my property myself?
An owner builder is a person that chooses to manage the construction of their own new home build. So, you are essentially taking on the general contractor role. Some owner builders choose to do some of the physical labor themselves but for the most part, they hire quality tradespeople to do the work.
@@OpenBookBuild thanks. Where are these day laborers and how do you get them to keep working?
@@OpenBookBuild i have seen that I. A lot of this communities they ask you to go and bring them the builder. How would you handle that if you are the builder? Great videos by the way
@@favored4life Youre hunting in the wrong forest, or in an agriculture field to be more precise- where everything is controlled and run as a process. Theres subcontractors for every step of the build, you hire them
Biggest problem today? Finding trades people esp in some super high demand areas like FL & SFO area.
The projections for lumber prices aren't looking good. Most experts predict it will be around 700 and settle around that until about 2023. Compare that to March when it was like 200 and you got a 3x cost increase still for lumber. Some long estimates which are obviously way far out suggest it may take until 2025 until we start seeing a recovery and houses may be ridiculously high for several years too.
how do we get proper quote for the garage portion of the house ? for example, if the house is 2000-sqft and garage is 500-sqrft. Is it fair to get the same price/sqrft for 2500-sqrft ? or do the contractor separate the garage ?
I have land, electric, septic, and well all installed. I want to build a simple 1500 sq ft or less, single story, one roof line, all basic (nothing custom) home. Hard to find anything like this being built now days to compare. Everything complicated, custom, ten roof lines that drive the cost through the roof. How can you figure the cost of materials to build a simple starter home like this?
Me too. I only want to build a 1,200 sq ft. 3 beds 1.5 bath.
What about the layout and design process? What costs more and what to avoid?
generally these companies have in house architects/designers as single family home construstion doesnt require having a licensed architect (laws vary state by state which determine size and type of house **stick frame or cement**) which is why they charge 30%. A custom build you'd be paying an architect about 10-15% and also the contractor 15% for upcharge thus bringing it to the same. However with the architect, you can really get into the details and custom designs to exactly what you want and also sky rocket your price to build depending on the luxuries and finishes you want ie baseboards vs reglets, flangeless lights vs cans and on and on.
it does not add up 564K - 30%/169K=395K - land 20% /120K=275K . You said 321K. What's wrong with the numbers? The only I see to come up with your number is to reduce the builder markup to 23% =130K
How did you get the 433,800?
$563,900 / 1.3
What if moving to a new state where you don't know anyone. What should be the process to find people to work that won't rip you off? What are all the other things to consider like water lines, electrical lines, sewer or septic tank are there other things we need to consider? 😊
go see the 3 most current jobs they are working on pay only in stages as work is done, never work on a lump sump contract i case you want to fire mid process
@@curtissharris8914 thank you!
@@Victoriahull remeber that good enough is the standard unless specified in the contract. What you think is good enough is going to be completely different than what random guy thinks. Use installed according to mfg specs or better. Most contractors very busy dont be a dick but dont make yourself a target and dont agree to hire someone just because you're struggling to find someone. Busy guys, that are good dont need your work you may have to call them a few times but once on their radar expect them to not be flaky. Get at least 5 bids. Make sure bids specify what is excluded. Learn what a scope of work is. Ask how long , how many guys. Get a commitment as to when completed. I could go on but your best bet is try to find good people and remember that the propmt payment is saying thank you.
@curtissharris8914 Thank you! There are 2 main builders where I'm moving but I am close to Tulsa OK. When I was looking for other builders I did not find any that would go out to the city/town I am moving to. That was on line. What do you think if I call or go to the companies when I get there? Should I have my plans done before talking to anyone but the 2 in Claremore have their own architecs they work with so what do you suggest? I will not need a loan for it but I have heard about a construction loan I think that is what it is called will I still need that? I have a lot of questions I hope they will tell the truth and not just want my business. I bought the land the electric and water IA at the road but will have to put in sewer. I want a cellar but th realtor said the builders won't do it because of the red mud. But they need to dig for the sewer so why not the cellar? I hav more but won't bother you with them.
@@Victoriahull Sounds like you could use a consultant. There's a guy, how to build your own house here on YT.
I am in California. Can homeowners hire a non-licensed person to construct a new room addition (adding square footage to your home) or hire a non-licensed person to construct a brand new home? Is just a normal person allowed to do this job? Your reply would be highly appreciated.
Why not? Unless you are financing.
@@rubyoro0 Could you explain on how the rules and requirements change when financing is involved?
@@balla2828 Well do you have the money to build it without a bank? If not, why bother asking the question unless you want to write some type of thesis paper. Sorry…I don’t wish to be rude.
@@rubyoro0 Well in my original comment I mentioned we are doing room additions on a current home and the 2nd part was about doing a brand new home construction. For the room additions, we are gonna be paying without financing. For the new home construction down the road, it would require financing. That is why I am asking. We have the funds for one project but not the other.
@@balla2828 you can hire whoever you want, just that unlicenced contractors are most likely not as good in their trade and if they do screw up there is no legal recourse. Not that you particularly need to tug on everyones legal papers, a licensed contractor will always be a sharper, better skilled and more professional individual. Also the state might not pat you on the back for hiring non licensed since they pay no tax. For new construction anyone who claims theyre a builder but not licensed, RUN the other way.
Please anyone can tell me , how to find builder to build house in my own land ?
I don’t have an area where I live that I can do this
Can someone tell me how he arrives at the $433,800 given the mark up of 30%?
$563,900 / 1.3
@armchairbuilder 433k isn't 30% of 563k...what am I missing?
I think the mark up he calculated was like 23% not 30%. He did say 30%. I get the jist of what he is saying
Markup is a percentage of costs. So if markup is 30%, and the costs are $433,800, then 1.3 times $433,800 equals the sales price of $563.9k. I did a quick google search to find a markup calculator if you are interested...
www.omnicalculator.com/finance/markup?msclkid=d961aa99a2ec11ecbfdd450fc3425d7a
What percentage is 433k of 563k? Divide 433/563 = 1.3. Another way is if markup is 30% of 433k that equals
433 x 30% = $129.9k. The markup is $129.9k added to 433k = $562.9k ( close enough). I think this is correct.
@@reseller7 makes sense I was thinking 433k would be 70% of 563k...
@@dejeanbrown3298 Agreed. He's talking about markup. Thus $563k is the result of a 30% markup from $433k.
A 50% markup from $433k would be $216,500 + $433k = $649,500.
All I see is SOLD PRICE NOT AVAILABLE.
I shouldn't have performed this search because the prices are insane hahahaha
Do you have an excel spreadsheet to calculate the cost?
Once you know your sales price, you can use a markup calculator to determine the total costs. Here's a link to find your total cost number. Use 30% for markup and the sales price goes in the revenue box. www.omnicalculator.com/finance/markup?msclkid=d961aa99a2ec11ecbfdd450fc3425d7a
No way I’d pay those prices. Im shooting for $50-$60 per sq foot. Breaking ground in a few months. I built a house in 1996 for $15 per foot but oh the inflation since then😵💫
At $47 a sheet for 7/16" OSB. Too much. That's over $5000 additional cost just in 7/16" OSB alone for the small house I'm budgeted for. Prohibitively expensive. OSB shouldn't be over $11 a sheet where I'm at.
I just checked HD and it’s $57 here in Cali.
The shocking thing is that everything is almost FULL back to normal, they say, with almost NO restrictions. The labor force is in full swing and Covid isn't disrupting it, so they can't claim that is the issue anymore due to "lockdowns" which they blamed for the ridiculous rise in prices. There's no reason why it is still 5x higher. I mean I remember buying a 2x4 for a dollar something, now it's like 6 bucks? Come on. My wife wanted me to build some shelves for our basement, and when I finished my cut list and did the math, it would cost over 190 dollars, which would have cost me 30 bucks March, 2020. Just 2 years ago! No excuse.
luckily it is back down to $12 at the Lowes near me. $11.60 when bought bulk. Thank god these prices stabilized again.
Where? 7/16 OSB is $11.95 per sheet right now. I know your comment is a year old but surely it hasn’t came down that much in a year.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
With the US dollar losing value to inflation and other currencies gaining traction, uncertainty looms. Yet, many still trust in the Dollar's perceived safety. Worried about my $420,000 retirement savings losing value, I seek alternative security for my money.
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
“Angela Lynn Shilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
Why are house plans so expensive....
If you've seen a full set of house plans, the cost might make more sense. There's a tremendous amount of detail in a good set of plans from cross sections to specifications, to cabinet layouts...they can make a building project easy if done properly. On the other hand, if they are missing dimensions, details, or specs, the person managing the project will be constantly receiving phone calls from the workers on site asking how to proceed. Or worse yet, they won't call and instead will make a judgement call because information is missing. This is a great way to blow a budget. As my best architect friends will tell you, a lot of time goes into a set of house plans when designed properly.
Yeah I can’t follow this math to save my life. Maybe that’s why Pole get so screwed over on housing prices.
Hi Scott. My description of how to calculate the cost from these numbers was a little sketchy to say the least. I've added an update in the description of the video to help with the math if you are interested. Thx for watching.
@@OpenBookBuild ahhhh see that math makes sense. But I don’t think your video numbers line up that way. Your initial deduction of 30% didn’t yield the right cost to build number. Everything threw me off from there.
As a world traveler, I am considering to build a home in the mountains of Georgia, I have been comparing the prices of building materials, including cabinets, finishing, etc. from China vs the US, the difference in prices are 50%-60% cheaper, considering the cost to ship a container from China to the US. So, you can build a 3,000 sqf modern home for less than $300,000… you need to spend at least two weeks in China visiting suppliers to see first hand what you are purchasing.
out if your goal is to beat your local cost of a home?
im from canada and two years ago my build would've costed me 250k now it cost 435k when are prices going to drop my government is worsening our houses crisis fml
Add 100k in impact fees, utilities, school fees, plans, permits and some more hidden fees