HOW TO ESTIMATE THE COST OF YOUR NEW HOME

How do you estimate the cost of your New Home?

Of course it is not easy. Here is some tips for you to know how much your dream house will cost. That can help you modify your plans to meet your budget.

1. Contact Local Builders

Meet with builders who construct houses that are similar in size, quality, and features to the home you want. Builders will tell you how much per square foot they usually charge for home construction. They can also give you a ballpark idea of what your dream homemight cost. However, it is important to know exactly what is included in the price. If you ask, some builders will provide you a list showing the materials they will use.

2. Count the Square Footage

Look at newly constructed homes that are similar in size, style, quality, and features to the home you want. Take the price of the home, deduct the price of the land, and divide that amount by the square footage of the home.

For example, if the home is selling for $230,000 and the land costs $30,000, then the construction cost is around $200,000. If the home is 2,000 square feet, then the cost per square foot is $100.

Use several new homes in your area to get an approximate square footage price. After you have calculated an average square footage cost, you can multiply that cost by the finished square footage of your house plan to get a ballpark estimate.

In Kenya, you can make use of the Official Journal of the Institute of Quantity Surveyors of Kenya to obtain the rates (Cost per Square Metre) for building works excluding site works for Central Region (Nairobi), Coastal Region (Mombasa) and Western Region (Kisumu). The Journal is titled The Quantity Surveyor

However, care should be exercised in comparing costs of various buildings without considering other factors like:

• location
• specification of building material
• wall to floor ration
• floor to ceilling height
• site topography
• type of joinery fittings
• quality of electrical installations
• quality of Mechanical installations etc

3. Expect Some Features to Cost More

The most expensive areas in a home are usually the bathrooms and the kitchen. The number of windows and the size and quality of windows can also affect the cost. Vaulted ceilings and high roof pitches can increase the cost of a home. When using other homes to calculate an estimate, be sure the home has a similar style and features of the home you plan to build.

The cost per square foot is often higher for a small home than that of a larger home. When building a larger home, the cost of expensive items (such as a furnace or kitchen) is spread over more square footage. Consequently, a larger home may have a lower square footage cost than a smaller home. Also, it usually costs less to build a two-story home when compared to a one-story home that has the same square footage. This is because a two-story home will have a smaller roof and foundation. Plumbing and ventilation are more compact in two-story homes.

Small details in the design of your home can make a big difference in the price. To save on costs, begin estimating construction expenses before you select your final blueprints. Here are important factors to consider:

* Size of Home
When building a home, it’s best to work with even numbers. Have your home size rounded up or down to increments of two feet. This reduces wasted materials. Also, it’s most economical to build a home which is no deeper than 32 feet. If the depth exceeds 32 feet, then your roof trusses may need to be specially designed and will be more expensive.

* Shape of Home
Homes that have a rectangular or box shape cost less to build. Having more angles and corners in the shape of your home can increase the amount of labor and materials needed to build a home. Dome shaped homes also make efficient use of materials and tend to cost less than other shapes.

* Site Preparation
Preparing a site for construction can have a big impact on the cost of a home. Building on a flat lot will usually cost less. If you have to haul in lots of dirt, do a lot of grading, clear trees, or blast through large rocks, then site preparations can become more expensive.

* Cost Overruns
Usually the finished cost of a home is more then the original bid price. Cost overruns occur from overspending the allowances, making changes, and encountering unforeseen problems. Proper planning can greatly reduce cost overruns. In general, it is a good idea to allow an additional 10% to cover unexpected costs.

* Inflation and Market Conditions
Usually the cost of building a home increases around 3% to 6% per year. If it will be several years before you begin construction, remember to include inflation into the cost estimate for your home. When using other homes to compare prices, try to use homes that have been built within the last six months.

Consult Building Professionals

At all times it is important to work with professionals in the building industry for guidance. This could be an Engineer, an Architect or a Quantity Surveyor (Cost Consultant). All the best!

Kind regards,

Qs.David Nahinga | @Ujenzibora

ACKNOWLEDGEMENT: I found this blog too accurate, beneficial and a good lead to my readers, Original post can be found at MAKE DREAM HOME