Really dislike this question; cost per sq. ft. does that include lot? Developer fees, city impact fees also real estate fees can vary. Hereâ€™s the example: 200,000 home at 2000 sq. ft. Breaking it down: lot 40k, developer fees 2k, city permit 6k, city impact fees 2k, builder profit 20k, real estate fees 14k, bank fees to builder 6k, labor and materials 110k, so what is the price per sq. ft.? Labor and materials 55.00 a sq. ft. or the total cost of 100.00 per sq. ft.? Maybe the worst question in real estate since there is no standard criteria for answering the question. But I hope this helps you. Find a RealtorÂ® which truly understands new home construction and has been there and done that to guide you through the process.
In response to Melissaâ€™s â€œit cost you nothingâ€ comment I get so tired of it cost you nothing to have representation answer. It does usually cost you indirectly, as a builder when I have an unrepresented client and when they ask directly, I deduct 3%-6% off the cost of the home depending on the subdivision. The money is â€œbuilt in for agent commissionsâ€ but it is a fee just like all other fees & cost associated with building a home. (See above) Now having given you the truth about costs let me give you the pluses of having a good RealtorÂ®. If you are doing a new construction build job the RealtorÂ® can be the perfect teammate; they will offer sound advice and give you guidance into finding other team members which can help the process go smoothly. The good ones usually know price is not negotiable but upgrades are and can help you get a better deal. Also since they are familiar with new construction they can help protect you from gouging from subcontractors and assist you in keeping a budget. They also will make sure your interests are protected since they have a fiduciary relationship with you. This requires a ton of work (at least 10 meetings) so interview several RealtorsÂ®, pick one with new construction experience, and finally pick a FULL TIME RealtorÂ®. In addition if you are interested in an inspection from a third party expect to pay 1500.00-2000.00 dollars for an inspector/ architect / engineer to be at all city inspections and be active during the process of building the home (this is a good idea), the builder should have no problem with this type of inspector but they may have a huge problem with a non-credentialed inspector coming in after the home is complete and making judgment calls about items they know little or nothing about. RealtorsÂ® love home inspections because it reduces liability to the RealtorÂ® if a problem arises. In our state we make clients sign a waiver if they do not want in inspection CYA. Good Luck!