The building and construction of your personal custom-built home is a significant project to undertake, depending on your preference and budget, there are several factors that can influence the cost of this project.
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1. Home Location
Your preferred home location is one of the primary determinants of construction costs. The price of material, labor building permits and relevant taxation fees vary from region to region. Moreover accessibility and proximity to certain benefits like lower crime rates, good school rates etc., are also things you pay for in a property.
Apart from the non-physical prospects of your preferred housing site, the physical state of the land is also a cost driver. Costs from site preparation via tree removal, backfill for rough terrain, installation of well and septic are activities that could potentially drive up your overall construction cost.
2. Size of Home
It goes without saying that in a normalized setting, a bigger house will cost more to build than a smaller house. There are various construction components in the house that are priced per square feet: slab, framing, roofing, most electrical, drywall, interior trim labor, and paint.
An increased size means more cost incurred via higher construction fees due to increased add-ons, fittings and components costs.
3. Home Design
This is another cost factor leveraged on your house structure, building complexity, building style and other layout arrangements. The more complex your home design gets, the higher the cost of construction.
An emphasized elaborate design almost certainly results in a lot of wasted space; bigger and longer hallways, complex bathroom and toilet structures, and traffic dedicated areas are examples of wasted spaces.
Except in special scenarios, wasted spaces means more square footage which is equivalent to more construction costs.
4. Quality of Materials
The overall quality of your custom home is dependent on a host of factors, however, the pivotal factor that drives construction cost is the quality of materials used for building the home.
The costs of construction materials is arguably the principal determining factor of your home construction. The type and quality of materials you choose can wholly determine the overall cost and value of your home.
Materials that majorly impact construction price based on their extensive range of quality are:
- Framing Lumber
- Cabinets and Countertops
- Windows and Doors
- Sliding
- Roofing
- Flooring
High end options for these materials will result in an exponential increase of building costs, however their inclusion will comprehensively drive up the value of your home down the road.
5. Supply and Demand
This is a non-physical economical factor that influences construction costs as a whole. When demand is higher than supply, price surges, if your custom home is to be constructed in a rapidly developing area, construction costs will most likely spike due to high demand.
Increased demand in your preferred location means that more houses are being built in the area. The higher number of construction projects in that period will stretch the labor force thin, effectively driving up labor costs.
The cause and effect cycle will summarily drive up construction costs due to available market constraints.
If you are contemplating the building of your custom-built home, ensure that you understand all five factors and how they fit into your vision.