Pricing building costs for new home construction in Central NJ

[Grace G.]

I am seeking bids for a duplex or a single-family home for investment purposes.

The lot sizes vary from 0.47 acres to 1.3 acres and the asking prices for the vacant lots are between 150 K up to 300 K depending upon the town.

How can I determine what is a reasonable building cost for a side-by-side duplex that has 1400 sf on each side or a 2400 sf SFH with either a daylight or walk-out basement?

I have received one quote from a builder that was very detailed and thorough, but it was very high, including profit and overhead fees of about 20%.

Thanks,

Grace

[Steve Tucker]

Quote from @Grace G.:

@Steve Tucker, thanks for your reply. I have done one prior bid but it did not go far because the asking price for the property was too high. I am not sure what is meant by code, are you referring to after repair value? I searched for home builders on Houzz and also used referrals. I contacted 4 builders who all said they were happy to provide a quote but so far only one has done so. The plans are architectural drawings. 

 A few things:

- I asked about code/zoning bc of the size you noted.  I like to work backwards and see what my maximum allowable envelope is then size down or  up based on design and need.

- You can take your maximum allowable and  see what a builder will charge to build from an architectural plan that is proportionately similar to the maximum allowable square footage then understand what their materials and labor ratio is - if you can.  This can give you a base line of cost per square ft...

- Then turn around to them and ask them for a bid / quote for the exact project size and plan you actually want.  

- From there you can have a better understanding of how to analyze a bid

- You can also consult with an estimator which should give you a nice breakdown of the cost to build from a market standpoint.  You can then use this figure as your base/prime bid number that might be more sound to pitch and see* how close bids can align with that.