I actually saw a few builders in when he mentioned the categories. I found it very informative too. We're planning on building in a couple years and we are going with a custom builder.
Thank you for your comment! We are going to be releasing a video soon talking about the recent increase in the cost of lumber so look out for it this week.
as you move up cost/sq foot ladder is it necessary to move up the total square footage? what if one wants high quality medium size home? custom plus 3000 sq ft is not possible?
As you move reduce the size of the home, the cost/sf starts to go up - so it can be a balancing act. The majority of the costs for homes is in the kitchen and the baths. Once that number is fixed (#beds/baths), and you start to increase the size of the home, the cost/sf starts to go down. The opposite is true when reducing the size of the home. With that said, you don't have a necessarily raise the size of the house as you move up the cost/sf ladder.
If I'm an architecture Can I manage my budget with the expenditures. Do I have a right for that? Which means that I can build my own house with any materials and facilities.
We have people wanting to do this, but you have to watch out where you end with the total $/sf number (including land and house) If houses resale in your area for $400/sf, be careful not to build a house where you come in at $600/sf. Some people don't mind doing this knowing they will be in the house long enough for the area to catch up with their higher $/sf (and the lender will ask for you to put more money into the project for the loan) But keep this in mind when doing your planning
@@daltonrichards5723 congratulations man I’m looking for 4 acres just 40 min away from the city never liked the suburbs they have no land at all and all the houses look the same good to hear young people doing great things wish you good luck
Is there anything wrong with wanting to build a 2600’ - 2900’ custom plus home if this is all the house you want. Or, is it inefficient to build custom plus at this size.
There's no problem building a smaller home, in essence what we would call a jewelry box. Small with high-end finishes. Just remember, the smaller you go the higher the cost/sf goes. The majority of the costs for homes is in the kitchen and the baths. Once that number is fixed (#beds/baths), and you start to increase the size of the home, the cost/sf starts to go down.
This is such a helpful video! Some custom builders tell me they charge 15% as their profit. Is it common they charge 15% for even appliances? I understand materials and labor they make 15% but if appliances and lighting are also charged 15%, seems like it would be better for me to purchase it than the builder?
Usually appliances you have to buy like a fridge. But builder mark up is how they make money at the end of the day. Find a builder that lets you have creative control in what you buy, like free standing tub, the entry door, ceiling fan etc. If they tell me I can buy after the build, I look the other way cause then you’re financing an overpriced item for 30 years. That tells me they’re too greedy.
correct. The pricing mentioned is just for the home, not for the lot or any extra site preparation like lot clearing, demolition, etc. - which can vary depending on location.
When you say a custom home costs say, $200psf, based on a 3,500sf house, does that sq ft price include the cost of the garage, decks, patios, etc? Is that calculated at a different rate?
Good question. The per square foot price is for living area or AC area, and doesn't include the garage, porches, etc. Now, if you have a 3 car garage and oversized porches, that can cause the $/sf to increase. We are assuming a 2-car garage and around 450sf of porches.
Since these prices don't include the lot, are they independent of location? I'm in Austin, TX and home prices are skyrocketing here. If a custom builder can build for $200/sf in Houston, can it also build for $200/sf in Austin?
It depends on what type of home & size you’re trying to build. I live in San Antonio. I did talk to a few building designers to draw up plans up there in Austin and they’re crazy expensive. Material cost up 100% so expect to pay more for lumber during the build
There is nothing wrong with building a smaller ultra custom home. We call these jewelry boxes, because they are smaller homes with incredible upgrade features. What you have to watch out for is where you end with the total $/sf number (including land and house) If houses resale in your area for $400/sf, be careful not to build a house where you come in at $600/sf. Some people don't mind doing this knowing they will be in the house long enough for the area to catch up with their higher $/sf (and the lender will ask for you to put more money into the project for the loan) But keep this in mind when doing your planning.
You can do modified versions of a modern ranch style in the "custom" category, but you have to watch your costs. Essentially, modern homes just require a level of precision that’s not required in more traditional spaces. The more modern you go, the higher the costs go - mainly due to the large window and door systems (that are typically custom sizes), wide open floor plans needing steel to be involved in the framing and custom wall finishes like stone and wood that would typically be sheetrock.
Great question. The pricing mentioned is just for the home, not for the lot or any extra site preparation like lot clearing, demolition, etc. - which can vary depending on location.
My parent's built a 12,000 Sq. Ft. ultra-luxury Georgian Colonial in Potomac Maryland in 2012 and they've since paid off the property in 2016, and recently they gifted me the home for my 21st birthday in January of 2021. They have also been kind enough to buy me 3 Mercedes GLS 580 4matic SUVs all from the Mercedes dealership in Germantown. so I'm very grateful to be adopted by them from starving/freezing conditions in Tula Russia in 2003. can you do a video specifically on the ultra-luxury category of property's I have a family friend who's looking for that kind of information right now I'll reference you if you can if not I won't hold that agents you.
It's scary how much prices have changed just in one year. I'd be lucky to build a custom home at $200/sq ft.
As someone looking to build a home in 2021, this was super informative. I think i'll stay in the $150 range :)
Wood is insane right now good luck !
I actually saw a few builders in when he mentioned the categories. I found it very informative too. We're planning on building in a couple years and we are going with a custom builder.
So happy I found your channel. Very simple and well explained.
Does basement square footage go into these numbers? Or should we just add in the estimated value to add a basement to the upstairs sq footage?
Very detailed!👍🏽
Thank you!
Great, new information to learn. So, incredibly helpful. Thank you for sharing.
Thanks for the info and your effort.
Watching this video in March of 2021 wondering how much the cost of lumber has increased the costs of building you covered?
Thank you for your comment! We are going to be releasing a video soon talking about the recent increase in the cost of lumber so look out for it this week.
as you move up cost/sq foot ladder is it necessary to move up the total square footage? what if one wants high quality medium size home? custom plus 3000 sq ft is not possible?
As you move reduce the size of the home, the cost/sf starts to go up - so it can be a balancing act. The majority of the costs for homes is in the kitchen and the baths. Once that number is fixed (#beds/baths), and you start to increase the size of the home, the cost/sf starts to go down. The opposite is true when reducing the size of the home.
With that said, you don't have a necessarily raise the size of the house as you move up the cost/sf ladder.
Great video! Very informative. Do you all build in Florida by any chance?:)
Thank you we are glad you found our video helpful! Right now we are only building in the Houston Texas area.
If I'm an architecture Can I manage my budget with the expenditures. Do I have a right for that? Which means that I can build my own house with any materials and facilities.
Good information. Do you ever build a custom plus home Thats only about 2000, sq ft. Want a nice house, with what I want, but just don’t need huge.
We have people wanting to do this, but you have to watch out where you end with the total $/sf number (including land and house) If houses resale in your area for $400/sf, be careful not to build a house where you come in at $600/sf. Some people don't mind doing this knowing they will be in the house long enough for the area to catch up with their higher $/sf (and the lender will ask for you to put more money into the project for the loan) But keep this in mind when doing your planning
I’m 22 bout to buy a land I want to build my own house in about 5 years from now hopefully and I’m in Houston
Do it! I’m 21 and just bought a 8 acre piece of property from my grandparents! Getting ready to build in about 2 years!
@@daltonrichards5723 congratulations man I’m looking for 4 acres just 40 min away from the city never liked the suburbs they have no land at all and all the houses look the same good to hear young people doing great things wish you good luck
Is there anything wrong with wanting to build a 2600’ - 2900’ custom plus home if this is all the house you want. Or, is it inefficient to build custom plus at this size.
There's no problem building a smaller home, in essence what we would call a jewelry box. Small with high-end finishes. Just remember, the smaller you go the higher the cost/sf goes. The majority of the costs for homes is in the kitchen and the baths. Once that number is fixed (#beds/baths), and you start to increase the size of the home, the cost/sf starts to go down.
Do these cost include the land or are these just building cost? Do they include site prep?
This is such a helpful video! Some custom builders tell me they charge 15% as their profit. Is it common they charge 15% for even appliances? I understand materials and labor they make 15% but if appliances and lighting are also charged 15%, seems like it would be better for me to purchase it than the builder?
Usually appliances you have to buy like a fridge. But builder mark up is how they make money at the end of the day. Find a builder that lets you have creative control in what you buy, like free standing tub, the entry door, ceiling fan etc. If they tell me I can buy after the build, I look the other way cause then you’re financing an overpriced item for 30 years. That tells me they’re too greedy.
Good points. Thanks
Good info, great video
Thank you! That means a lot!
Enjoyed video ! Is time and material done very much in pricing now ?
We see that sometimes used, but buyers prefer fixed price arrangements.
Fast good info
Are these price ranges for just the home itself assuming the lot is extra and hook up to public utilities?
correct. The pricing mentioned is just for the home, not for the lot or any extra site preparation like lot clearing, demolition, etc. - which can vary depending on location.
The prices don't include the land right ?
correct. land isn't included in the pricing.
I'm 17 years old. What do I have to do to afford a custom plus home?
When you say a custom home costs say, $200psf, based on a 3,500sf house, does that sq ft price include the cost of the garage, decks, patios, etc? Is that calculated at a different rate?
Good question. The per square foot price is for living area or AC area, and doesn't include the garage, porches, etc. Now, if you have a 3 car garage and oversized porches, that can cause the $/sf to increase. We are assuming a 2-car garage and around 450sf of porches.
Thanks 🙏
You're welcome and thank you for watching!
Since these prices don't include the lot, are they independent of location? I'm in Austin, TX and home prices are skyrocketing here. If a custom builder can build for $200/sf in Houston, can it also build for $200/sf in Austin?
It depends on what type of home & size you’re trying to build. I live in San Antonio. I did talk to a few building designers to draw up plans up there in Austin and they’re crazy expensive. Material cost up 100% so expect to pay more for lumber during the build
What if you want to build a ultra custom house but don't need a 7,000sq ft house but 3,000-4000sq ft instead?
There is nothing wrong with building a smaller ultra custom home. We call these jewelry boxes, because they are smaller homes with incredible upgrade features. What you have to watch out for is where you end with the total $/sf number (including land and house) If houses resale in your area for $400/sf, be careful not to build a house where you come in at $600/sf. Some people don't mind doing this knowing they will be in the house long enough for the area to catch up with their higher $/sf (and the lender will ask for you to put more money into the project for the loan) But keep this in mind when doing your planning.
What would one of those modern ranch style homes fall under?
You can do modified versions of a modern ranch style in the "custom" category, but you have to watch your costs. Essentially, modern homes just require a level of precision that’s not required in more traditional spaces. The more modern you go, the higher the costs go - mainly due to the large window and door systems (that are typically custom sizes), wide open floor plans needing steel to be involved in the framing and custom wall finishes like stone and wood that would typically be sheetrock.
Does the cost include the lot
Great question. The pricing mentioned is just for the home, not for the lot or any extra site preparation like lot clearing, demolition, etc. - which can vary depending on location.
My parent's built a 12,000 Sq. Ft. ultra-luxury Georgian Colonial in Potomac Maryland in 2012 and they've since paid off the property in 2016, and recently they gifted me the home for my 21st birthday in January of 2021. They have also been kind enough to buy me 3 Mercedes GLS 580 4matic SUVs all from the Mercedes dealership in Germantown. so I'm very grateful to be adopted by them from starving/freezing conditions in Tula Russia in 2003.
can you do a video specifically on the ultra-luxury category of property's I have a family friend who's looking for that kind of information right now I'll reference you if you can if not I won't hold that agents you.