If you’re a DIY type, you may have considered the possibility of building your own house. After all, investing in land for sale near you can show strong returns, and if you build your own home in Andover, you get to make it just like you want it. However, many people end up asking their real estate agent in New Jersey the same question: what goes into the cost of building a house? Here are some important factors to consider.
1. Average Cost To Build Your Own Home
Research of other homes shows that it costs, on average, between $100 and $200 per square foot to build your own home. That means that a 2,400 square foot house will cost you anywhere from $240,000 to $480,000. Yikes! That can be more than you’d pay to buy a house in Andover, and way more than you’d pay to buy a foreclosed house in NJ!
2. Where Your Money Goes
How can it be so expensive to build your own house? The biggest costs are in terms of labor. The land and site development costs should be only a small fraction of your total costs, maybe 5-10%. Setting the foundation, framing your building, and completing exterior work accounts for another 30-40%. Your major appliances and utilities (think electricity, sewage, HVAC and more) eat up 10-15% of the costs, and the final stage hits hard, with 25-30% of your costs typically being the interior finishing, such as drywall, floors, and cabinets.
3. The Hidden Costs and Value
If you see a cheap plot of land, those dollar signs might shine in your eyes! Unfortunately, while land for sale is often cheap, the costs of developing that land are much higher. If cost savings are where you’re at, consider buying a “fixer upper” or call your real estate agent in Bergen County to find out how to buy a foreclosed house. However, if your dream is to build something unique, to know that you are the only person who has ever lived in your house, or you just love that DIY thrill, building your own house can be a great project!
Get started on your next real estate project today with help from Sheldon Neal and his team! They have helped so many people buy and sell homes, source commercial real estate, and make strong real estate investments in NJ, and you can too!
