“Look before you leap.”
This should be a very good statute when entering the daunting process of building homes. To avoid potential problems in the future especially in financing, type of home construction, and so on, an individual has to consider a number of issues.
A budget has to be created before any concrete is poured. Because the economy is unstable, it is not a good idea to rely on estimates. Figures can change anytime, but a reliable contractor can give you a reasonable calculation of home building prices and overruns. Home design, site, and local costs for labor and transport of materials are the main factors that determine home building prices.
Not able to know the factors that determine home building cost can make determining home building costs complicated and difficult. In this scenario, one can calculate a reliable estimate. Just like how we determine the market value of homes, the same goes in determining home building costs – find similar houses in the area that has similar overall look and size of one that you wanted to build. We can get a good estimate by following the basic rule. Say the home is selling $350,000 including the land which is $20,000. The home cost is around $330,000.
It is safe to put away around 10% to cover any overrun cost. Take note that home building costs can increase as much as 3 to 6% due to some other factors like land, and home features. This percentage might look like just a small portion but it could be thousands if you convert it to dollars.
Materials are important, the interior design, quality of materials needed, the flooring, carpeting, the size and dtyle, and location contribute in the home building prices. It’s hard to pinpoint estimates because every year, home building costs increase. However, one can do so by being meticulous in the planning stages.
Home building can be too overwhelming for a regular home owner who wants to invest his or her money on something lucrative. In this case, consult your real estate agent to guide you in choosing the right location for your Real Estate in Raleigh North Carolina investment. Visit Charlotte Real Estate for more property options.