Hi I've been moderately successful as a rehabber and looking to make my first foray into development. I have a plot of land to build on. Still doing lots of research, but I'm wondering:
What has been your experience in construction costs on a per square foot basis? I would like to know the range that's out there. What does the range depend on?
I've built for as low as $60/sf and am currently helping a friend build for what will be about $275/sf. So, that's my range.
Depends on location, style of house, finishes, types of contractors, GC or self-managed, time of year, permitting costs, local codes, utility requirements, your negotiating skill and about a dozen other factors.
If you just want to get a general idea you can ask locally. You can ask General Building Contractors, Architects, Local Building Unions, you local Building Department and other sources. However to know specifically I would not start pricing a project until you have approved building plans. Meaning after all of your soft costs such as soils engineer, architect, and structural engineering then submitted your plans to your local building department for approval and permits. Once you have the actual plans for the building then you would proceed to getting quotes from contractors. They will all quote you on a per square foot basis. I would get prices from individual contractors so I would have a way to compare those figures with the figures a General Building Contractor will quote you.
Prices depend on area, materials, and finishes you desire.
I see brand new homes in Indianapolis for example for a 1500 square foot home selling for $160,000.00. I know in my area I could never build a 1500 square foot home that I could sell for $160,000.00 because the prices per square foot in my area are starting at $200.00/sq. ft so the minimum I might build a 1500 square foot home is $300,000.00 and that is just the house itself not including all other costs. So what it will cost you first of all will be area dependent then you will include other factors and of course the market value of your home will be dependent on area comps.
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