Custom Home Price Per Square Foot

When it comes to building a custom home, one of the first questions that often comes to mind is, “What’s the price per square foot?” It’s a crucial factor to consider in determining the overall cost of your dream home. In this article, we’ll build into the complexities of calculating the price per square foot for a custom home and provide you with valuable insights to help you make informed decisions.

Understanding the Complexity of Price Per Square Foot Calculation

Calculating the price per square foot of a custom home is not as simple as it may seem. While home builders can provide an average price per square foot based on an existing home, the cost will vary based on your preferences and design choices. A simple home plan with basic design options will cost less per square foot compared to a more complex home with luxury building materials.

At Coastal Plains Homes, we understand the importance of a design meeting at the beginning of the home building process. This meeting allows us to understand your design preferences, vision, and goals for your new home. By doing so, we can provide you with a more accurate estimate of how much you should expect to spend on your custom home.

Components Included in the Price Per Square Foot Calculation

When calculating the price per square foot, certain components are typically included, while others may be excluded. The following materials and major systems are often included in the calculation: land, plan drawings, permits, site development, foundation work, framing, exterior materials & installation, plumbing and electrical work, HVAC & insulation, and interior finishes.

It’s important to note that garages and porches are not usually included in the price per square foot calculation. However, they do add some additional cost, albeit not as much as interior living spaces. It’s essential to discuss with your builder what is and isn’t included in their cost per square foot estimate to avoid any surprises.

Transparent Estimations on Construction Costs

At Coastal Plains Homes, we believe in transparency and providing our clients with a clear understanding of what is included in our total cost estimate. While the cost of land and site development can vary significantly in different areas, we separate these costs from our Base House Cost calculation.

The Base House Cost of the homes we build includes essential components such as foundation, roofing, flooring, lighting, framing, exterior cladding, fixtures and hardware, electrical, HVAC & plumbing, drywall & paint, mirrors & glass, insulation, cabinetry & counters, appliances, windows & exterior doors, and trim & interior doors.

Options and upgrades, which can vary based on your design choices, are not included in the initial cost to build. Instead, they are factored in as a separate line item once the house is complete. This approach allows you to have a more accurate understanding of the impact of design upgrades on the total cost of your custom home.

The Significance of Price Per Square Foot

Understanding the price per square foot is essential for two reasons:

Providing a Framework for Budgeting

Knowing the price per square foot gives you a framework to work within your budget. By calculating the total cost of your home based on the square footage, you can determine whether your desired home size aligns with your budget. It also helps home builders provide accurate cost estimates to clients who opt for pre-designed floor plans and standard design options.

Determining the Value of Your Home

After the completion of your custom home, you may need to get an appraisal for various purposes such as home equity loans, refinancing, or resale. The appraisal takes into account factors such as the size of the home, options and features, design choices, location, and market values to determine the value of your home. This appraisal value also contributes to the price per square foot calculation.

For buyers, the price per square foot value helps assess whether the cost and value of the home align with the market. If the price per square foot is too high, buyers may negotiate the price down. Conversely, if it’s too low, they may question the quality or condition of the home.

Custom Home Price Per Square Foot in Texas

The custom home building costs can vary depending on various factors, including location. In Texas, the average customer spends around $275,000 on their custom home. The average cost to build ranges from $170,000 to $345,000 with a median sales price of $257,500, excluding the cost of the land and labor costs.

A quick calculation reveals that the national average cost per square foot to build falls between $130 to $141. However, it’s important to note that total construction cost can differ based on your specific design choices and desired upgrades.

Building Your Dream Home with Coastal Plains Homes

Building your own home is an exciting journey, and understanding the price per square foot is crucial in managing your budget effectively with your down payment in mind. If you are financing a lot, a construction loan will be necessary. Coastal Plains Homes is committed to providing transparent cost estimates and guiding you through the process of building your own house.

If you’re ready to embark on this adventure, Coastal Plains Homes is here to help with many house plans. Contact us today to discuss your custom home project and receive a personalized pricing estimate. Let us bring your vision to life and create a home that reflects your unique style and needs.