A 2021 Analysis Of The Cost To Build A New Construction Home

For some people, their dream home is already on the real estate market. Others want to see their dream home become reality by having it built. If the latter is you, you may be wondering what you will be paying for when you hire a general contractor to build your dream home from the ground up. HomeAdvisor estimates the median cost of building a new construction home to be $314,672. In general, you can expect to pay $125 to $200 per square foot unless you’re looking for a lavish custom home. In this article, Sharrett Construction completes a thorough cost analysis of building a new construction home in Central Florida.

Cost To Build A New Construction HomeCost to build a new construction home explained.

Factor 1: Where your land is located.

Before having your new home built, you first must purchase the land. You can choose to buy from a real estate developer or buy unfinished / vacant land.  Working with a developer means  you will be buying the land with the basic home amenities already in place such as electric, water and cable hookups. Buying vacant land usually means you will need to  run sewer and electric lines from the street to your home at your cost. In some cases, buying unfinished land means you will need to install a septic system, water well and possibly have the electric company erect a power pole. 

Of course, the size of the lot and the proximity to the city are the main variables that will help determine the final price. Make sure to work with a qualified, trustworthy Realtor who can help you uncover all available lots that meet your needs.

Factor 2: Permits and Inspections 

Building a new construction home means you will need to have all the proper permits before any construction begins. You’ll also need to cover land surveys and inspections for water and sewer lines, as well as impact fees. Impact fees are paid to your municipal government to expand services such as water treatment and maintaining accessible roads to your new home. Usually, these costs can be included in your mortgage loan if you choose.

Factor 3: Architecture and Engineering 

Building your home from the ground up means you have final say on each aspect of the end result. It also means you’ll need to have an experienced engineer and architect weigh in on the project. The more complex the project, the more this will cost; think staircases, balconies, etc. Residential architects charge anywhere from $85 to $125 per hour, while home building engineers often have an hourly rate of $100 or more. 

Factor 4: Foundation 

Without a sound foundation, your newly constructed home literally cannot stand. This is probably the most labor-intensive part of the process, but it’s vital. It’s also expensive—representing about 10 percent of the typical cost to build a new construction home. 

Room addition success

Factor 5: Framing 

The foundation has been poured and set, and now it’s time to create the wood frame for your new home. It’s a huge investment of manpower, as well as supplies: lumber, braces, and roofing support. 

Factor 6: Exterior Finishes 

This refers to the costs associated with your doors and windows as well as the outdoor finishes you choose such as stucco, brick, or siding. Roofing materials also fall into this category. Want oversized windows or a high end roofing like metal or tile? Then expect the total cost to build your new construction home to rise.

Factor 7: Interior Finishes 

This is, hands down, the most expensive part of building a new construction home—representing about 30 percent of the total cost. It encompasses everything from drywall to millwork, from flooring choices to backsplashes and the countertops throughout your home. The more custom you want your home, the higher the price will be. 

Factor 8: Utilities 

You need your home’s utilities to function as expected. Your general contractor will get bids from plumbers, electricians, and HVAC specialists to install full systems into your new construction home. (Hint: They all will come with five figure price tags.) However, if we’re being honest – and we always are – skimping or trying to cut costs on these areas is not advised. These systems are what will keep your home functional for the long haul. 

Sharrett Jobsite Pre-Construction - building a custom home jobsiteReady To Build A New Home Construction in Lakeland, Florida? Contact Us Today! 

Buying a home is the biggest investment you’re likely to make in your life—this includes building a new construction home. The fact that you have control over every detail is exciting and overwhelming at the same time. The cost to build a new construction home is in your hands. When you need a general contractor, you can trust the professionals at Sharrett Construction. Our team is ready to walk through every step of the process with you and help you build your dream home. Find out more by scheduling a consultation today. (863) 840-9781

Sharrett Construction offers residential and commercial construction services throughout Central Florida, including the areas of Lakeland, Bartow, Plant City, Brandon, and Winter Haven.