Home building is usually more expensive than home buying, which makes sense. If you decide between buying and building a similar house on a similar lot, you will see that the added costs of building a home will make it more expensive. Even so, building your home allows you to customize energy-efficient new construction rather than renovate an existing construction. If you compare building a smaller home versus buying a larger home, you could break even or get an even better deal. With that said, here’s a helpful home-building cost breakdown.
1. Land
Buying the land is a mortgage in itself. In Maryland, land can cost anywhere between $3,000 in the remotest regions to well over $200,000 in prime locations. Land with utilities in place will naturally be more expensive than undeveloped land.
2. Home Design
You could either work with an architect or a home designer in a home building company like Ameri-Star Homes. If you purchase a floor plan online, it can cost several thousand dollars. It’s worth taking your time to finalize a plan you are really satisfied with.
3. Site Preparation
Even if the land already has utilities, your home-building team will need to develop the land so you can safely lay your home’s foundation without it sinking or getting flooded. Site preparation involves clearing, stabilizing, and grading the land.
4. Building Materials
Building materials like wood, concrete, asphalt tile, and insulation all cost something, and that price can fluctuate with the market.
5. Home Construction Labor
Not only do you need to pay for the building materials, but also for the labor to put them together skillfully. You can save money by contributing to its construction yourself.
6. Permit Fees and Other Fees
In Maryland, you need to pay to get a building permit, which could pertain to your home, a fireplace, a backyard deck, etc. Work with your builder to understand all the fees that come with building your home.
7. Landscaping
After the house is built, landscaping will complete the look and prevent soil erosion. Landscaping can cost at least a few thousand dollars, but it depends on the size of your lot.
8. Closing Costs
New home construction companies like Ameri-Star Homes offer a build-to-permanent loan for the best pricing. Whether you buy or build a house, you will need to pay closing costs to finalize your new ownership of the developed property.
Other Costs
When you purchase your new construction home, you will also need to take on property taxes, home insurance, utility bills, and flood insurance if your house is in a flood zone.
Let Ameri-Star Homes Build Your New Custom Home!
Ameri-Star Homes was built on the idea that a home is not complete until the homeowner is 100% satisfied. That’s right, completely satisfied homeowners. Whether you want a home built on one of our home sites or on your own land, count on the same high quality from Ameri-Star. We have set out to exceed all your expectations of integrity, affordability, and customer satisfaction. Build lasting memories for years to come with Ameri-Star Homes.
For more information, contact us today at 410-590-1000 or through our contact page. For more helpful custom home tips, keep in touch with us through Facebook, Twitter, LinkedIn, Instagram, and Pinterest!