Many people decide to build a home instead of buying an already built house. But what are the steps? How much will it cost? Can you afford to build? Today we will look at these questions and give you home building facts.
What are the steps?
Both Dave Ramsey and I recommend hiring a real estate agent first. Needless to say, consider hiring Mike Goins. He has a lot of experience helping clients find land, sign contracts with builders, and much more.
Whether you work with a builder immediately or you start from scratch on your own, you still have many decisions to make before you even break ground. A starting point is working with a draftsman to create the plans for your home. Many builders already have plans from which you can choose, but now is the time to make any changes or adjustments. To do so later will cause delays and costs to increase.
Then work with your builder or contractor to create a schedule for the build. Have them line up all the needed sub-contractors, too. Know there can always be delays. However, a detailed schedule can help keep the builder on track and enables you as the home owner to know what to expect to be completed depending on the schedule. In other words, a schedule will help keep your expectations realistic.
Once these steps are completed, then the building site needs to be prepared. Then the foundation needs to be laid. Next comes the framing. After that step, the exterior goes up. Then the interior is installed. This part always seems to drag, but think of all the details that go into this phase. Lastly, the outside yard and landscaping is installed. Before you close, do your final walk-through to fix any minor details and/or issues.
How much will it cost?
We all know that inflation has affected everything we purchase. Lumber, roofing materials, cabinets, appliances, and everything that goes into the home all cost more than just a few years ago. Thankfully the Dave Ramsey team has updated data for 2023 on the costs of home building.
These averages are based on a 2,600 sq ft, single family home.
- The average cost per square foot is $150.
- In Texas, the final cost comes to $264,000 on average.
These averages will help you estimate from the get-go how much you can expect to pay for a new house. Of course, higher end finishes, upgraded appliances, and more customization will most likely increase your final costs.
Can you afford to build?
According to Dave Ramsey, you need to first figure out how much your take-home pay is. Then do some simple math to find out what 25% of that number is. Next, add up your principal mortgage payment with your property taxes, homeowner’s insurance, and HOA fees. This total needs to be under the 25% of your take-home pay. If it is, then you can afford the house.
Hopefully, these home building facts have been helpful if you are considering building a new home instead of buying an already established house. Understanding the basic steps to home building, figuring out how much the home will cost, and then checking to make sure that you can afford to build the house need to be done before you start the project. If you are ready to get started, reach out to Mike Goins at 936-444-5929. He would love to help you build the house of your dreams.