How Much Does It Cost to Build a Home?

July 21, 2017 2:20 am Published by Leave your thoughts

A house is the most substantial investment that many people will ever make. When considering the cost of constructing a home, it’s important to understand the vast amounts of time and resources that home builders in Tyler, TX must employ to successfully create a living space.

The national average cost of constructing a home in 2017 is $287,370. This cost does not include the price of property, and may vary widely depending on where you live.

Fees of home building

Home builders must go through a complex series of steps in order to construct an abode. The lengthy process is associated with a large number of permitting fees and other expenses that may vary, depending on the jurisdiction in which you live.

  • Permitting fees: Building permits, sewer permits, electrical permits, occupancy permits and other associated items can quickly rack up expenses of several thousand dollars! A large amount of your home building expense will likely go toward the permitting process.
  • Lot preparation fees: In order to prepare your property for use, a substantial amount of work has to be done. Trees must be cleared, the land must be graded and other considerations must be accounted for. This is another noteworthy expense that prospective homeowners should expect.
  • Utility expenses: Utilities, such as electricity and plumbing, will need to be hooked up to your new home during the construction process. This means that you will be on the hook to pay the relevant utility companies to perform hookup and installation services to your property.

Starting the home building process

If you are prepared to assume all the expenses of building a new home, there are a few things that you will need to do to get the ball rolling. Here are some of the steps that need to be taken to begin hiring home builders in Tyler, TX:

  • Find a home builder: Firstly, you should locate the firm that you are comfortable hiring to utilize as your contracted home builder. You may already have a floor plan in mind, which you can use to shop around for estimates, or you can use a home builder to help you determine which floor plan is right for you.
  • Choose your floor plan: Floor plans can either be purchased online fully formed, or you can hire an architect to work to customize your dream home. Either way, it is important to consult with your home builder throughout the process of choosing a floor plan.
  • Secure your construction loan: Lenders must review your floor plan and the builder’s projected construction costs to determine how much they are willing to lend to you. Home construction loans require substantial down payments that are sometimes as large as 25 percent.
  • Close the final loan: Once your home is constructed, you will need to take out a mortgage to finish paying off your construction loan. This will require your house’s value to be appraised again, and may require you to make another down payment.

Since 2011, Canfield Construction Management has been providing area residents with high-quality construction processes. To learn more about our home builders in Tyler, TX and the other services that we offer, give us a call today!

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