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Frequently Asked Questions
Thanks for asking!
- How much does a custom home cost?
This is an often asked question...and the answer is it depends!
The question is kind of like asking, "how long is a rope?" or "how much
is a car?" Get the idea?
The cost of the home will depend on several factors:
- Relative location of the home to the metropolitan area. A long trip is going to
cost more and take longer to build.
- Difficulty of the site. Is it flat or a hill? Is it rock or sand?
- Location of the nearest utilities. How far do we have to go to bring them in?
- Typically, the bigger the house, the lower the per square foot cost associated with the
home. Why? Because the dollars (numerator) spent on the home is divided by a
larger denominator. Hence, a lower square foot cost. However, a bigger home
sometimes means more expensive fixtures and finishes thus brining the cost per square foot
back up. Also remember, the square footages are normally the "air
conditioned" areas of the home. A 3,500 square foot air conditioned house could
have a 4 car garage and a couple thousand square feet of patios. Thus easily
reaching 6,000 square feet under roof.
- Square footage--size. There comes a point in the size of the home that adding
square footage doesn't necessarily add dollar-for-dollar square foot costs.
For example, let's say a house is going to cost $100 per square foot to build.
Then, let's say you want to add 75 more square feet to your living room. You might
think that you'll need an extra $7,500 ($100 x 75-sf). However, that extra 75 square
feet won't cost $100 per square foot to add because your not adding stoves, bathtubs,
windows, sinks, etc. All these costs are included in the $100 per square foot
price. Basically, you're only adding more concrete, ceiling and roof, framing,
paint, floor covering, and perhaps a little more air conditioning requirement (but excess
capacity might already exist in your unit!) These variable cost items might add up
to $30 per square foot. Therefore, the added 75 square feet might only cost $2,250
and not $7,500! PLEASE NOTE THESE PRICES DEMONSTRATE THE PRINCIPLE AND NOT THE
PRICING OR RELATIVITY! THERE ARE MANY OTHER FACTORS TO CONSIDER...i.e. engineering.
- Market conditions. If in your local area the construction industry is very busy
you're going to pay more for the home. It's the old supply and demand concept from
basic economics. P.S. paying more doesn't mean it will be done any quicker.
Busyness tends to translate to a labor shortage which in turn raises prices.
- Material Prices. Fluctuate regularly with the world economy these days.
Hurricanes on the east coast, saving owl habitats in forests, strikes, wars, rumors of
wars, and politics play havoc with pricing. I've seen lumber prices jump $400,000 in
three days on an apartment project because of these things. The exact same house
built two years later jumped $10 per square foot in what would be considered a stable
local market.
- Okay, Okay. In Tucson, during the summer of 1999, homes are pricing out between
$97 and $110 per square foot depending on finishes (tile, granite, gold fixtures etc.)
This doesn't include the lot purchase, landscaping, pool or any major site work.
If you've got a question please send it along to david@corbanenterprises.com
Feel free to submit your experiences, comments or opinions also...learning is a
life long experience.
TOGETHER, WE CAN!
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