Gretchen Pagnotta 760-715-0478
Coming from a financial background, there is no disputing that that average cost per sq ft to build is primarily a function of supply and demand. Given the relatively high unemployment rate here in San Diego, contractors are definitely looking for work and willing to do it for much less than at the height of the housing frenzy. As noted by others, there are several other factors such as the area, materials, and choice of builder which weigh into the average cost per square foot. When analyzing adequate home insurance coverage, I generally use $200/sq ft. However, when talking about custom homes, that number moves more to $300/sq ft.
Let's use The Trails in Rancho Bernardo (neighborhood I grew up in and was devastated by the fires in October 2007) as a good example of whether to build or buy an existing home. There are 8 active lots for sale (all are a minimum 1 acre) and range in price currently from $469K-689K. For our sake, let's use $500K and then a 4,000 sq ft home at $250/sq ft. That get's you to $1.5 million, not taking into consideration landscaping. Now if you look at the 12 active properties in The Trails, the average "asking" price per square foot is $328. These most likely come with landscaping, but you are getting a much older home.
The conclusion, at least in this particular example above, would lead one to believe building a new home would cost more than buying an existing home, but there is a certain value to having a new place that you had designed and built from the ground up.
Hope this helps!
Chad Basinger, REALTORÂ®, CPA, CFPÂ®
I would first suggest that you find a good Realtor and have them run a free market analysis for you on the area you will be building in. Then you will have a good idea of what the going prices are so you do not over build for that area.
For good quality finishes and construction my bids are falling in at about $250 Sq. Ft. less landscaping. On one lot, I am going to build a single 2500 Sq. Ft. home as my zoning is RM-1-1 on a 4,800 Sq. Ft. lot. On my second lot, I am going to build two 2000 Sq. Ft. homes as my zoning is RM1-1 on a 6300 Sq. Ft. lot. I anticipate my ONE house to sell in the $1.1 to $1.25M range. I anticipate to sell my TWO houses in the $.8 to $.9M range each.
I hope this helps and as always, if you are looking to buy a home or land, please do don't hesitate to contact me.
Lance A. Schmidt
W Partners, LLC.
lic. #: 01701692
The cost of building and obtaining a lot is usually more expensive than buying a pre-existing home. This of course depend on the area because it will always be cheaper the further East you go. If you like, I'm happy to offer you a free consult where we can analyze it much closer. I'm happy to help! My cell is 858-204-7259.
Have a great week!
Wills Allen Real Estate
Century 21 1st Choice
As a consumer my advice to answer this question is to look for historical data. Historical data is term used in estimating and it refers to the construction company data base of project that they built and documented there costs to construct. The estimator goes to his/her historical data base when bidding new project. that is his/her best source for construction costs.
As one of the post below suggests, the rebuilds of homes that where burned down in the fire are perfect examples of reference construction costs. I would do some research and finds as many homes of a similar quality that where rebuilt within the San Diego city limits. The tricky part is to find out the cost to construct and design. I would contact the city building department and find out who pulled the permit and contact the general contractor who built the home. Or better yet find a contractor who competently rebuilt multiple homes after the fires. With that information you would know who could best answer the question. If you approached them as a potential customer they may be inclined to give you budget cost in the spirit of future business. The question you want to ask is what would the cost be including design fees, permits, construction management and construction costs. Be sure to ask if escalation of cost from past projects is included. If you have any questions related to construction cost estimating feel free to contact me at firstname.lastname@example.org