• ‘Are You Negotiating With Your Builder? Then Here Are The Things You Must Know…’

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What Does it Cost to Build a Home?

By Rick Jarvis

Obviously, these costs vary by size, style, area, overall conditions in the marketplace and a host of other considerations, but generally speaking, most home builders follow a version of this economic model.

ever wonder what it costs to build a home?
Lot costs can be higher in homes that are located on specialty lots (such as waterfront) or that abut other value enhancing features. Different markets will also have different lot costs as a percentage of the overall costs

Builder Costs (21%)

  • Sales Commissions
  • Closing Costs
  • Deferred Marketing
  • Advertising
  • Contingency
  • General Administration Cost
  • Profit
  • Income Tax
  • Warranty

Land and Lot Development Costs (25%)

  • Raw Land
  • Site Preparation
  • Financing
  • Zoning/Permit/Fees
  • Site Development
  • Miscellaneous

House Construction Costs (54%)

  • Site Preparation
  • Excavation/Foundation/Basement
  • Framing & Finish Carpentry
  • Plumbing
  • HVAC
  • Electrical
  • Interior Finish
  • Exterior Finish
  • Financing

 


Other Articles on New Home Values

  • Examining the Dollar Per Foot Metric
  • Beware the 'Unique and Expensive'
  • What Does the Lot Offer?
  • The Popular Plans
  • Hardwood Floors
  • Aging in Place
  • HOA/POA or Civic Association? Does it Matter?
  • Builder Warranties - Mandatory or Elective?
  • Track Versus Custom Builders
  • Which Comes First? The Purchase or the Sale?
  • What Does 'Stick Built' Mean and Why Does it Matter?
  • EarthCraft Homes and Appraisals...Friends or Foes?
  • Lot Pricing in the Metro
  • Grey Oaks and Nuckols Road
  • Look at Models
  • Bad Lots
  • Investments versus Expenses

Other Articles on New Home Process

  • The Dreaded Change Order
  • Building a New House from A to Z and then back to D.....
  • Builder Warranties - Mandatory or Elective?
  • Track Versus Custom Builders
  • Which Comes First? The Purchase or the Sale?

Related Posts

Filed Under: Insider Perspective, Process, Values Tagged With: Process, Value

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Link to One South Realty's New Homes Team Bios

How Do I Schedule a Showing or Find Out More?

I am Kendall C. Kendall, Client Care Coordinator for the team. I am a licensed Realtor and it is my job to answer questions and schedule showings for the properties shown on our sites. Here's our call policy.

kendall@richmondvamls.net

Sarah Jarvis, Founder One South Realty

Working With Buyers

I love new homes...always have. In my 20+ years in real estate, I feel lucky to have seen nearly every aspect of the building business close up. From design and permitting to development and finance, I have been involved in every facet of the new construction process. If you are considering building a new home, don’t go it alone. Spend a moment on our blogs to understand the depth of our knowledge about Richmond's new home market.
sarah@richmondvamls.net

Some of Our Thoughts

The Dreaded Change Order

By Rick Jarvis

Buyer – “All we did was add a $100 ceiling fan?!?” Builder – “You didn’t just add a ceiling fan.” What really happens when you want to make a change? When contracting to build a new home it is very important to get all the upgrades and changes to the standard house plan agreed to […]

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