Is finding the exact home you want proving to be difficult? Maybe it is a tough market. Or maybe your tastes are very particular.
Whatever the reason, the process can be overwhelming when you start to research where to even begin.
Here, we go over everything from cost, the timeline, financing, and much more! Read further to gain some more insight on how to build a new construction home.
First things first
The beauty of building a brand-new home is just that – it is BRAND new and has never been lived in before.
Not only do you get to tailor the floor plan to your needs, but you will not have to worry about bad plumbing, wiring, or other common issues that older homes bring.
According to the National Association of Home Builders, new home construction was up 10% in November of 2020.
Keep in mind that due to this high demand, materials may be difficult to source and builders are swamped.
You may have to stretch your timeline a bit, but the end result will be well worth the wait.
Cost of building new
According to HomeAdvisor, the typical range of building a house is $158,572 – $478,600. That is an average of $303,373, or $100 – $200 per square foot. Labor tends to take up about 40% of the build cost.
There are three things to consider when building a new construction home:
- The cost of land to build on
- The cost of building the house (materials and labor)
- Possible closing costs
If you are building in a new construction development that has already been started, a lot of the work may have already been done for you.
If you bought a piece of land that is not being offered directly from the developer or builder, there may be some more cost involved. This can include:
- Land clearing
- Land surveying
- Permits for zoning
- Utility and septic mapping
- Soil testing
As far as closing costs go, you can expect to pay between 2 and 5 percent of the total price in these fees.
However, some builders may offer a package where you can get a discount on these costs or roll them into the price of your home.
Read more here about new construction financing.
New home timeline
According to Realtor.com, it takes anywhere between three and six months to build a house.
Factors that can affect this timeline are:
- Building material delays
- A rise in new construction demand
- Permitting and zoning
- Change orders
The easiest way to make sure your new home is built smoothly and quickly is to plan the build out from start to finish with an experienced contractor.