Sometimes, buyers want to compare the cost of building a new, custom home in Denver with buying a used, resale home. After all, new homes have better technology, better floor plans and less maintenance. But, how much more do you have to pay for a builders new home, really?
While there are no hard and fast rules about how much a new luxury home in Denver will cost to build, there are a few general guidelines which might give you a little better grasp on what costs are involved.
Pick a Builder and a Floor Plan
Talk to friends and your Realtor about various builders reputations. Choose one after interviewing interviewing several custom home builders. You can ask perspective builders for sample floor plans from previous clients. That way, you can better understand the options. After you choose your new Custom home builder, go back and pick a floor plan. This doesn’t have to be your final plan. It’s just a good starting point to help you begin to narrow in on the size, quality, and overall layout you want. This builder should have a great reputation for building homes in your desired neighborhood similar to the one you want, and be able to give you a general idea of total costs based on the floor plan you pick.
The cost-per-square-foot conundrum
To get a rough idea of this elusive number, divide the estimate given to you by the builder by the total number of square feet in the floor plan you’ve selected. That’s pretty simple, right? You can do rough comparisons with homes in your desired area that are of similar size, quality and features. First, find out the sold price of the home. Then, subtract the cost of the land to get just the home price. Then, divide that number by the total square footage in your floor plan.
It’s important to note there are other cost factors just as important as size. Did you know that rectangular homes and homes with two stories rather one story are less expensive to build? Special architectural touches such as spiral staircases, cathedral ceilings, steeply-pitched roofs, balconies, 2-sided fireplaces and more all add to your cost-per-square-foot formula.
The materials you choose are part of the puzzle too. Naturally, better-quality windows, doors, appliances, roofing material, flooring and custom cabinetry will cost more than standard options. Ask questions about the trade-offs between price and value.
There are other things to consider such as what kind of prep work the builder will have to do to the property before construction begins, fees and permits necessary to perform the work that has to be done, weather conditions, and whether or not the builder will be erecting your home during a peak period.
Give yourself a safety net
Whatever you choose for a budget add an additional 10%-15% for unexpected issues that may arise. That way you don’t have to delay progress or make hasty compromises.
Building a new custom home in Denver can be a gratifying experience. Remember, your Realtor can help you though this process and protect your best interests.