Constructing a house is an exciting endeavor but one of the most important steps is to Estimate the Cost of Building a House. Cost estimation is the cornerstone of a profitable project.
There are numerous financial factors to consider while predicting cost. You must have the necessary knowledge such as the scope of the project, prices of materials, etc so you can navigate through the estimation process smoothly.
Professional Residential Estimating Services use advanced cost estimating software to increase the accuracy of their predictions. SMA Estimating LLC is one of the best-estimating agencies that use Planswift, Bluebeam, Quest Estimating, Stack, and much more. You can calculate manually if you don’t have access to advanced software. Or you can get professional help.
Average Cost of Building a House
According to Forbes, the average Cost of Building a House in 2024 in the United States is somewhere around $329000 with an average range from $42000 – $900000 which is primarily based upon size and location. In other words, a simple house with 2500 square feet will cost $2,75000 – $5,50000. The average cost according to square footage is from $110 – $220 per square foot.
You may have noticed that there is quite a variation in average cost. That is because there are a number of external and internal elements that can affect cost. Let’s take a look at them.
Estimate the Cost of Building a House Accurately!
When doing estimates, certain important factors impact the overall cost of a house. These 3 major factors are as follows:
1) Geographics
Where a house is located, matters a great deal when the task is to estimate the Cost of Building a House. It might involve factors such as the price of the land, surroundings, local building codes, regional price variations, transportation costs, etc.
2) Scale and Layout
These two are directly proportional to the estimated costs and a larger size and complex Layout will require more material, labour, or equipment leading to more costs.
3) Design and Architecture
Customized designs and architecture for either interior or exterior will include more features with enhanced details which can significantly increase the overall cost.
By considering these important and all other essential variables.
How to Estimate the Cost of Building a House?
It will include the main components in which construction expenses are divided which are as follows:
1) Pre – Construction Phase
This phase takes up to 15% to 20% of the overall budget as this phase lays the foundation for the complete groundwork. This phase’s outline is as follows:
● House design process (interior and exterior)
Detailed House plans start from $250 and can go as high as $10000, if there are any customized interior or exterior design demands
● Acquirement of the land and site
- preparations
- Land acquisition costs vary from area to area and can range from $50000 – $200000.
- Connection to Electrical Grid’s average cost is $1000 – $30000 or more depending upon the distance from the main power lines of the area
- Water and sewer connection’s average cost is around $1000 – $10000
- Excavation and grading costs around $1500 – $10000
- Testing of soil costs fall in the range of $1000 – $2300
● Acquiring Other Essential Permits
Costs of permits differ when rural and urban areas are compared but a general pricing range falls somewhere between $550 – $2200
2) Construction Phase
To estimate the cost of building a house, the cost of construction involves the structure of a house without any finished touches. A general rule of thumb is that the total cost will be 50% material and 50% labor, but it depends upon various other elements. Some of the most important constructional cost estimation components are as follows:
The foundation depends on whether you want a concrete slab or if there will be a basement. It typically ranges from $6000 – $33000
Framing
One of the most critical factors is that it is considered the backbone of a house. In 2024, the estimated cost of framing a house falls between $22000 – $55000
MEP System
Mechanical, Electrical, and Plumbing systems expenses average from $35000 – $85000 as the prices are constantly increasing because of the increase in demand for labour and materials
Exterior
On average, exterior expenses can range from $33000 – $66000 for elements like roofing, siding, windows, etc.
3) Interior design costs of a House
Interior design is one of the significant expenses as it involves a lot of customizations. That is why it ranges from $44000 – $165000. Some of the primary elements in interior designing costs are:
- Cabinets and cupboards $3500 – $33000
- Doors $5800 – $22000
- Flooring $10000 – $43000
- Lighting $2200 z $14500
- Paint $4400 – $12400
Common Mistakes
What to avoid to optimally Estimate the Cost of Building a House
Some common mistakes can cause trouble in the long term if not properly tackled and can also compromise the profitability margin. Following steps the mistake that must be avoided:
Make sure not to underestimate expenses, as it can lead to creating a false budget. Similarly, avoid overestimating your investments, as it will result in an unrealistic budget. Ensure that contingencies are in place to address any uncertainties.
Bottom line
In the end, to properly Estimate the Cost of Building a House, a professional must adopt certain guidelines to acquire success. Only then a realistic budget will be created and financial pitfalls will be avoided. Therefore, this article discusses in detail some of the major cost drivers that are involved in a house estimation process. It is important to note that a well-planned accurately estimated project is more likely to succeed than an unplanned one.
