Monthly Archives: January 2017

Cost of Home Building Materials – Most of Money But Faction Cost to Build House

How much does it cost to build a house? Everyone wants to start with the cost of building materials. And while it represents most of the overall cost (probably the biggest in most cases), it’s still a fraction of the total cost that should be incurred.

This article is designed to help you, as an owner builder, understand the factors involved in calculating the cost of a home building project. My goal is to present to you the bird’s view of how the cost of materials, while representing most home building budgets, can not be considered an indication of your cost to build a house..

A Home Building Budget is Complex

Let’s put the cost of home building materials in perspective. What have you got when you have a pile of materials? Sticks, windows, doors, cabinets, appliances, tubs, sinks, lights, floor coverings … yeah, lots of cool stuff, but pretty much useless in a pile. The magic comes in how it’s all put together.

It takes a lot of people, talent, time and energy to make a pile of materials a home. This is what we pay for, even when buying materials. But, we’re still only about 30% of the way home once we’ve priced out our materials package.

Your total investment to build will be spread over the following:

  • Cost of land and utilities
  • Coaching and project supervision
  • Building permits and other required fees
  • Home design and architectural work
  • Financing and reserves
  • Professional and casual labor
  • Deliveries, insurance, contingencies

Simplifying the Process of Pricing With Kit Homes

Many owner builders use packaged homes to make pricing a materials package easier. But it still doesn’t remove the need to factor in all the other costs of building a home. Don’t make the mistake of asking for the price of a package and think you’ve got a good handle on the cost to bui.

Home building packages do include more labor than a site built home, but they only slightly reduce the need for all the other building requirements I’ve listed here. As always, I advise the use of a home building coach to accurately assess your project.