10 Real Estate Construction Costs to Keep in Mind this 2022
How much does it cost to construct a home in the United States today? This is one of the most asked and searched questions online by aspiring homeowners who intend to construct their own homes. Startup real estate developers also aren’t spared in this quest because construction cost per square foot depends on the type of unit you intend to construct, choice of construction materials, and location. This article will discuss the top ten most significant construction costs to keep in mind this 2022.
Cost of Buying Land
Do you already own a piece of land on which you intend to construct your unit? If yes, then you’ve just bypassed one financial cost that you have to keep in mind for that beautiful home or residential property. Once you have identified a piece of land at a location that pleases you, it’s of essence to use the help of a real estate agent and a land surveyor to help estimate, strike a bargain, and buy the piece of land.
Construction Estimate per Square Foot
Knowing the estimates of your construction cost per square foot is critical in determining the overall estimate of completing your entire project. Your construction estimate will be dependent on the type of building; is it an ultra-thin high-rise or medium-sized high-rise building? Or is it a single three-bedroom family dwelling? Costs will also rise or go lower depending on the location. For example, it costs between $100 – $200 per square foot to construct a family home, but the cost may go up if you choose luxurious accommodations like walk-in closets and intelligent lighting.
Building Permits and Regulations
After successfully purchasing your land, contact your local municipal office for the necessary building permits. You’ll be at an advantage if your contractor already has a relationship with your municipality, which will speed up your process. The associated fees will vary depending on your locality; therefore, it is essential to find out beforehand. Some of the permits you may need include; Zoning permits, electric, basement, HVAC, and plumbing permits.
Labor and Contractors Cost
The general contractor is responsible for obtaining your construction cost estimates, hiring subcontractors and a competent labor force, and ensuring that the construction deadlines are met. Most contractors charge between 10%-20% of the total construction cost. However, some will agree to charge you hourly, ranging from $50 – $150 per hour.
The next step is excavating the ground for your foundation. Here the cost is dependent on whether your choice is a slab crawl space of the basement. The slab is the cheapest, followed by crawl space. The foundation is the most expensive of these choices. Foundation construction cost will be between $ 4 – $25 per square foot, depending on your choice of foundation and building materials.
Hvac and Other Major Systems
Electrical and HVAC systems account for most of your construction costs. This is because they are labor-intensive and crucial for the health and safety of the home occupants. The cost of these systems varies with the size and type of the system.
Framing and Exterior Work
The cost of framing and exterior work of your unit involves installing doors, windows, walls, roofing, and windows and is dependent on your choice of materials. The more the complexity, the higher the cost. It’s important to involve your contractor when shopping for these costs depending on your taste beforehand, to get an overall picture of how much it will cost you overall.
The cost of your interior finish will be determined by your taste and choice of materials to use. Special touch and customization of the owner will raise the cost of your interior finish.
Homebuilding Materials Cost
COVID19 made the cost of building materials soar through 2020 and 2021. There’s no indication of the prices going down any time soon. The requisite building material costs to take note of are lumber, concrete, roofing, siding, drywall, and flooring materials. The quality of building materials that you choose will determine their overall cost.
Real estate developers or individuals who have purchased an already constructed house will need to renovate the units to fit their tastes and increase the house’s overall value. Renovation costs will be dependent on the condition and size of the house. Individual choice and preference will also determine your overall renovation cost.