House Plans,Budgeting,Blog
When it comes to building a house, buying a house, or selling a house, people are going to look at the cost per square foot. In theory, it's an easy way to compare one house to another. It's like looking for the cost per ounce when deciding what size of mustard or mayonnaise to buy at the grocery store, right?
Not exactly when it comes to houses, because larger houses generally have a lower cost per square foot. Why? Because the bigger the house plan, all other things being equal, there are more square feet to spread the cost over.
Example
Let's say you have a $40,000 kitchen planned for your dream home. That cost includes everything in the kitchen—cabinets, granite countertops, flooring, appliances, lighting, etc. It's your dream kitchen.
Put that kitchen in a house that's 2,000 square feet. That kitchen costs $20 per square foot of your total house. Now put that kitchen in a house that's 4,000 square feet. Same exact kitchen now costs $10 per square foot of your total house.
Here's an insider secret to consider: the last square foot is the cheapest square foot.
You can design a house plan with everything you want, and it comes out to 2,500 square feet. Now add three feet of width right down the middle, and that house is 2,800 square feet. That last 300 square feet is strictly living space. The only materials required are slab, frame, roof, drywall, paint, and carpet (or other flooring).
Square footage that results in strictly living space is the cheapest kind to build, but you're still adding square footage to the house and thus increasing its resale value. That's valuable square footage!
Adding extra square footage will lower your overall price per square foot even as it adds to the overall cost to build. But if you choose basic living space for additional square footage instead of more expensive square footage (like kitchen or bathroom space), the lower cost per square foot works even more in your favor.
1 minute read
I'm Tim Turner, a seasoned home builder with over 20 years of experience, currently serving as the CEO of Turner & Son Homes. My extensive background in the field, coupled with my partnership with my father, Ben, who has been in the construction business since 1964, positions me as an expert in the realm of home construction. Throughout my career, I've honed my understanding of various aspects, including house plans, budgeting, and the intricacies of optimizing living spaces for cost efficiency.
Now, let's delve into the key concepts discussed in the article:
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House Plans: House plans are integral to the construction process, serving as the blueprint for the entire structure. In the context of the article, the size and layout of a house plan play a crucial role in determining the cost per square foot. It emphasizes that larger houses generally have a lower cost per square foot due to the ability to distribute costs over more square footage.
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Budgeting: The article touches upon budgeting in the context of house construction. It explains how the cost per square foot can be misleading, especially when evaluating the expenses associated with specific features, like a kitchen. Understanding how to allocate budget efficiently, such as prioritizing basic living space over more expensive areas, is key to optimizing costs.
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Cost per Square Foot: The cost per square foot is a metric commonly used in real estate and construction to compare the value of different properties. The article highlights that this metric may not be straightforward, as larger houses tend to have a lower cost per square foot. It provides an example of a kitchen cost, demonstrating that the same kitchen in a larger house results in a lower cost per square foot.
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Optimizing Living Space: The article introduces the concept of optimizing living space for cost efficiency. It suggests that the last square foot added to a house is the cheapest, particularly when it results in strictly living space. By focusing on basic living areas instead of more expensive features like kitchens or bathrooms, homeowners can lower their overall cost per square foot.
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Resale Value: The article briefly touches on the impact of adding extra square footage on the resale value of a house. While additional square footage increases the overall cost to build, it can positively influence resale value, especially when the added space is designated as valuable living space.
Understanding these concepts is crucial for anyone involved in the process of building, buying, or selling a house, as they provide insights into cost considerations, optimization strategies, and the intricacies of evaluating property value.
