Real Estate Investor · Austin, TX · Member since 2010 · 14 posts · 1 vote
Does anyone know of a resource that provides the average construction cost for a new SFR in a given market?
I'm working on some marketing material and I've been asked to pull together ballpark construction cost data for LA, Las Vegas, and Phoenix.
Please help!
Why not hire a general contractor who offers free estimates then use those in your marketing piece?
For reference, I doubt a GC is going to be willing to undertake the cost estimation of building a brand new house without serious consideration for actually getting the job (it would be a good bit of work). And without providing the GC detailed architectural drawings and details about the finishings, most GCs would realize that the investor isn't serious.
If you don't already have designs, I would suggest talking to some local home-builders in the area, who can likely give you an idea of per-square-foot prices on different types of construction and design. If nothing else, it will get you in the ballpark.
Why not hire a general contractor who offers free estimates then use those in your marketing piece?
For reference, I doubt a GC is going to be willing to undertake the cost estimation of building a brand new house without serious consideration for actually getting the job (it would be a good bit of work). And without providing the GC detailed architectural drawings and details about the finishings, most GCs would realize that the investor isn't serious.
If you don't already have designs, I would suggest talking to some local home-builders in the area, who can likely give you an idea of per-square-foot prices on different types of construction and design. If nothing else, it will get you in the ballpark.
Why not hire a general contractor who offers free estimates then use those in your marketing piece?
For reference, I doubt a GC is going to be willing to undertake the cost estimation of building a brand new house without serious consideration for actually getting the job (it would be a good bit of work). And without providing the GC detailed architectural drawings and details about the finishings, most GCs would realize that the investor isn't serious.
Agreed. There is nothing more frustrating for contractors than investors assuming they are entitled to a contractor's time without compensation. They don't work for free.
Why not hire a general contractor who offers free estimates then use those in your marketing piece?
For reference, I doubt a GC is going to be willing to undertake the cost estimation of building a brand new house without serious consideration for actually getting the job (it would be a good bit of work). And without providing the GC detailed architectural drawings and details about the finishings, most GCs would realize that the investor isn't serious.
If you don't already have designs, I would suggest talking to some local home-builders in the area, who can likely give you an idea of per-square-foot prices on different types of construction and design. If nothing else, it will get you in the ballpark.
Agreed as well. Certainly you can arrange for a contractor to estimate some repairs for free with the understanding that he gets your work once you get the deals, but a full blown SFR is asking way too much.
Jason provided the best advice which puts you in the ballpark. Ask GC's what the "average" cost per sq. ft is to build a home in the size range you want (for instance 1500 with 2 car garage attached) also provide him/her with your expected finishings. High grade carpet and granite will run more per sq. than laminates and tile countertops or less quality.
Your area is a huge factor in determining average costs. In some areas of the country, you can build a 1200 sq. ft home for X per sq, and in other areas, it could cost you 3 times that.
There are so many variables involved. Land costs, quality of construction and finish details are just a few. Is it 2 x 4 construction or 2 x 6? Is it energy star or green built with extra attention paid to the building envelope, and conservation? Square footage cost does not always tell the story. A 1500 square foot home with 2 baths is going to have a higher cost per square foot than one with 1 bath. Are you factoring in landscaping, patio, deck?
I do agree that it is unfair to ask a contractor to do a detailed estimate, if there is no hope they will get the job. I would suggest browsing the local MLS for new construction. That will give you a pretty good idea of cost per square foot, and you will be able to see the amenities and finishes that are included in that cost. It will also show you what is expected in that area. Another good resource is builder / developer websites. They often include plans, construction features and prices.
I would suggest browsing the local MLS for new construction. That will give you a pretty good idea of cost per square foot, and you will be able to see the amenities and finishes that are included in that cost. It will also show you what is expected in that area.
That has to be the simplest, smartest advice I've ever heard on this forum about this topic (my apologies if it has been suggested before and I missed it). Just look at non reo listings of the type of home you want to build and divide the selling price by the number of square feet and you have a general per square foot cost of new construction.
It's posts like this that really make me appreciate the ladies of Bigger Pockets. :D
You could try using the RS MEANS square foot estimating catalog. I haven't used it for residential estimating but I know they have a large section on houses. It's not a cheap book but you might find it handy if you have to do this sort of thing a lot.
I would suggest browsing the local MLS for new construction. That will give you a pretty good idea of cost per square foot, and you will be able to see the amenities and finishes that are included in that cost. It will also show you what is expected in that area.
That has to be the simplest, smartest advice I've ever heard on this forum about this topic ..............It's posts like this that really make me appreciate the ladies of Bigger Pockets. :D
Thanks for the kind words, Tim. In addition to doing short sales nationwide, my husband Bill and I are Developer / Builders. I get asked all the time about square foot pricing from prospective buyers, and constantly have to explain that it's a lot more complicated than that, and the price per square foot does not tell the whole story.
I agree this is good and simple advice, but would remind all that this would reflect the "retail" cost per sq. ft and not what it would cost the builder necessarily. The land acquisition cost and when it was acquired also has bearing on the final "retail" price.