4 Tips to Help You Figure Out the Cost of Building a New House

If you are going to build a new home, you may be wondering how much it would cost you. This is a difficult question to answer as there are a lot of factors to take into account when figuring out the construction cost. Therefore, let’s take a look at 4 tips that can help you estimate the cost.

1. Determine Your Floor Plans

First of all, you should put together a floor plan. Some builders offer a lot of floor plans for their clients. Based on these plans, you can determine the quality, features, style and size you desire. This will help you lay out the base of the project.

Your next move is to look for the right builder. Make sure you work with an experienced builder. This is important for proper budget, timeline and execution of the build. With their assistance, you can calculate the cost to build a house.

2. Figure out the Costs Per Square Foot

It may not be realistic to figure out the exact construction cost, but you can get a ballpark idea. For this, you should get the total figure and then divide it by the number of square feet. Let’s take an example. Suppose your home measures 2,000 square feet, and the total cost of construction is $350,000. Now, you need to divide this amount by 2,000 to get a figure of $175.

3. Consider the features, Style, and Quality

The total cost of construction won’t depend upon the size only. You also need to consider the features, quality and style when making your calculations.

Style

Style determines the architecture of the building. If the available space is a square or rectangle, the construction cost will be less.

Quality

Quality depends upon the materials used for the construction. This may include a lot of choices, such as windows, doors, appliances, built-ins, cabinetry, shingles, insulation, paint and flooring, to name a few.

Features

Features include design factors like staircases, roof pitches, and vaulted ceilings. These additions are important and can have a great impact on the price tag of your new house.

4. Additional Construction Costs

While figuring out the cost, don’t forget to consider the primary expenses. Often, these are overlooked by many people. Given below are some of the most common ones.

Site Preparation

Site preparation involves clearing many trees and removing large rocks, for instance.

Permit Fees

Local restrictions, zoning laws and building costs should be obtained as well. Based on the area, know that these permits can cost a lot of money.

Time of Year

Time of year can also has an impact on the construction cost. When the cost of labor is high due to economic growth of low unemployment, the construction costs are higher. Therefore, you should consider this point when making your calculations.

Long story short, if you want to have an estimate of the total cost of your new house, we suggest that you follow these 4 tips. Hope this helps.

How to Figure a Mortgage Payment – A Quick and Easy Way to Calculate Payments in Your Head

There are several ways to calculate monthly mortgage PITI payments. PITI stands for Principal, Interest, Taxes (property taxes) and Insurance (home owner’s insurance).

o You could use a long, complex formula like: P = L[c(1 %2B c)n]/[(1 %2B c)n – 1] Does that sound fun to you? Me neither.

o You can use an on-line calculator. They are all different, though. Some are good, some are not. But if you are out house shopping and do not have internet access – not an option.

o You can even use a special, hand-held realtor calculator that will prompt you step by step to enter all the variables like: home price, down payment amount, interest rate, length of the loan, etc., then it will calculate the monthly mortgage PITI payment. However, these calculators are expensive, and unless you are a realtor, you will no longer need it once you find your home or refinance – not a cost-effective option.

You need a quick and easy way to figure your payment in your head, or maybe with the calculator in your cell phone.

Believe it or not, there is a way. It is very straightforward and will give you a ballpark estimate of your PITI payment.

Are you ready for this? It is super simple – just a one step multiplication problem. OK. Here it is. To estimate your monthly mortgage PITI payment multiply the amount of your loan by .008 . That’s it…seriously! (As long as mortgage interest rates don’t change drastically from what is available in Jan 09)

o If you are going to buy a $200,000 house, and you can pay $10,000 down, your loan amount will be about $190,000.

o The math looks like this: $190,000 x .008.

o Plug those numbers into your calculator.

o Your monthly mortgage PITI payment will be about $1520 per month.

Be advised, this figure is only an estimate – a simple way to get an estimate when you are not able to get to a computer. If you are in contact with a realtor or loan officer, they can give you a much more accurate idea of your monthly mortgage PITI payment.