Prospective buyers face a major decision when they take their first steps towards homeownership: Buy an existing house or build a new custom home? It often depends on the buyer’s financial situation, budget, and what they want.
The median sale price of single-family homes in the United States in December 2021 was $358,000, an increase of 15.8 per cent from the previous year, according to the National Association of Realtors. The median sale price for single-family homes during the same time was $377,700 according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
The cost difference may initially seem like a major dealbreaker for some buyers. Others may find it worth the cost to build a new home according to their own specifications.
Let’s make it easier for you to decide if you want to build something new.
Cost per Square Foot for a Single-Family New Home
The average cost of building a new house is $284,158. The cost of a new home can vary depending on the location, type of home, size, and desired features or luxuries. While new construction is typically priced between $100-200 per square foot (but customizations can quickly increase the cost to $500 per square foot), it’s not uncommon for costs to go up to $200 or $300 per square foot.
Costs of pre-construction of a Custom Home
It takes a lot of work to obtain the necessary permits, create a home plan, hire a team and prepare the lot before construction can begin. Pre-construction costs can account for between 10 and 25 percent of the total project cost.
Paperwork: Permits, Plans and Cost Estimates
The first step is to choose a house plan. You can choose from a standard design or hire an architect to create a custom-designed home. However, it is important to remember that the more personalized and detailed the blueprints are, the more expensive they will be. The average house plan costs between $2,000 to $8,000.
Once you have purchased your home plan, it is time to contact your custom home builder with the bid set. To give you an estimate on the cost of building your home, the bid set contains all the information that your contractor will need, including the floor plan, exterior images or elevations for each side and roof pitches. To get a complete picture of your dream home, your contractor will review the plans and ask questions.
Before you begin the new home construction, your custom home builder should also be familiar with the local codes and required building permits. While costs can vary, you can expect to pay between $1,200 and $2,000 for a building permits. You may also need other permits such as those for basements, electrical, HVAC, and plumbing.
You will likely work with multiple design professionals depending on the features you want and your home plan. Your general contractor, sometimes the same person as your custom home builder in Myrtle Beach, serves as the point of contact for your project and oversees all other members of your team.
A general contractor typically charges between 10 and 20 percent of the total cost of construction. This is often referred to “cost-plus.” Before starting work, experienced contractors will outline the payment options and plan in the contract. A portion of the project cost is typically paid upfront, with the balance due upon completion. Payments are also made prior to each phase.
Land Purchasing and Lot Preparation
The cost of purchasing land and its preparation will consume a significant portion of your overall project budget.
It is considered unfinished if the site isn’t connected to cable lines, sewer, and utilities. In order to prepare for building on the land you will probably be charged with impact fees ($1,300 to $5,000), city electricity grid fees ($1,000 to $300,00) as well as the city water lines ($1,000 to $55,000).
Additional costs and problems can arise from lots with less desirable conditions. To avoid digging on groundwater or soil that is too saturated, an expert may be required ($800-2100). Tree removal, land excavation and grading may be required for uneven terrain or overgrown trees ($1,500-5,300). To obtain legal documentation about your property’s topography and boundaries, a land survey might be necessary ($400-$700).
Demolition costs for lots with an existing home can run from $3,000 to $25,000. You can save money by using parts of an existing home to build your new home, or selling other materials.
This outline will show you how to build a home from scratch. The costs are broken down into phases.
The average cost of a new foundation for a home is between $4 and $25 per square feet. The type of foundation you choose (slab, crawlspace or basement) will depend on your specific needs and the location.
Framing a new home can cost anywhere from $20,000 to $50,000. Framers typically complete the sheathing, metal work, and subfloor installation. They may also include windows or doors.
The cost of a home will depend on its size. The timeline for a larger home will take longer and cost more.
Exterior finishing costs are similar to framing. They depend on the design and market price of materials as well as the size of the home. On average, exterior home finishing costs between $40,000 to $60,000 These include siding, roofing, exterior painting, and doors and windows.
Major Systems Installation
Now the frame is in place and the structure looks more like a house. It will need to be powered by water, electricity, and air to feel real. A skilled electrician will hook up your home to the power grid.
Major home systems can cost between $30,000 to $75,000. This includes rough-in plumbing, electrical hookups, and HVAC systems ($1,500 to $13,000).
You might have to install a water or septic tank in some cases. Talk to your builder about the options available in your region. On average, septic tank installation costs between $3,000 and $5,000.
Are you looking to be green? Installing solar panels is becoming more popular with homeowners. Installation and equipment costs range from $18,000 to $35,000.
Your home is almost finished at this point and needs the finishing touches to give it a cozy and warm feel. Interior finishes cost anywhere from $50,000 to $175,000, but can easily exceed that depending on what materials you choose. You will see an increase in price if you add more high-end finishes. Keep your budget in mind to avoid spending too much. When your dream home feels close to completion, it’s easy for you to get distracted.
This area is a great place to learn DIY skills and save some money. You can save as much as $10,000 by painting your interior rooms yourself if you have the time and skills. You can tile your bathroom with your favorite colors. Make the move-in process fun for your family by creating a custom fireplace surround or kitchen table together.
Installation of Appliances
New appliances and installation can cost homeowners between $3,500 to $15,000. Although this may seem like a high price tag, it is actually a new appliance with all-new warranties.
Fencing and Landscaping
Professional landscaping can cost anywhere from $3,000 to $16,000 to landscape your property. This will depend on the size of your land and the terrain. The average cost of building a fence is $1,330 to $5,550. It will provide ample space for children to play safely and enjoy the outdoors once it is all done.
Remember to include any finishing touches you might need such as a driveway (from $2200 to $6100) or concrete patio (from $1200 to $4300).
What happens if you have a house that is finished but still has some budget wiggle room? Now is the time to review your wish list. You might consider installing an inground pool ($36,000-$100,000.) or a deck ($4,080-$11,000.300). Or a screened porch to take in the fresh air ($600-$3,500).
Your custom home builder will need to schedule periodic inspections throughout the home building process. This includes the final inspection that will enable you to get a certificate granting occupancy. This certifies that the structure is safe and conforms to all codes. Over the course of the project, inspections will cost on average $5,000.
Call Dawol Homes now and let our team help build your dream home in Myrtle Beach.
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9404 Hwy 17 Bypass,
Murrells Inlet, SC 29576
Dawol Homes Sales Office
3100 Dick Pond Rd # E
Myrtle Beach, SC 29588
We build homes in: Cypress River Plantation, Waterway Palms, Waterbridge, Murrells Inlet, Collins Creek, Bellwood Landing, Carolina Forest, Plantation Lakes, North Myrtle Beach, Socastee, Surfside Beach, Pawleys Island, Litchfield Plantation