How Much Does it Cost to Build a Custom Home on your own Lot
Updated: Mar 19
The most common question we get asked when people call us is “ What is your Price per Sq Ft?”
This is always a great question but is not easily answered until we get more detailed information. When building custom homes, every home is quite unique and there are hundreds of things to consider to price a home fairly. It is easier for production builders as they only offer 5 or 6 floor plans in each community and keep repeating the same home with limited options to change or upgrade. When custom building it is difficult for most homeowners to understand and compare homes and cost to build from one builder to another. There are so many variables, options, quality levels, building practices, materials, among other differentiating services to consider. If building on your own lot, we have to also consider site prep, tree removal, utilities on site or need to be included, length of driveway, along with a few other items.
The overall cost of a project will depend on a whole parameter of factors that we both need to consider when it comes to calculating price. Perhaps unsurprisingly, there isn’t a set price for building a custom luxury home with so many moving parts and variables.
Where to start ? For transparency , the most important decision you will make for any new construction home is who will build your new dream home. Reputable builders you can trust will offer you realistic bids on your custom home based on your plans and specifications. Expect to receive a significant difference from each builder. We suggest you base your decision on your expected quality, level of experience and expertise the builder can provide, along with level of customer service. The biggest mistake we hear about all of the time is the customer who based their choice on price alone.
Ultimately, if you’re trying to decipher whether a custom luxury home is within your budget, you need to reach out to your builder of choice and inquire about costs. The more specific you can be about exactly what you want, the easier it’ll be to determine an accurate bid. Once we see your floor plan and all your design ideas, then our detailed price system helps us itemize and calculate the true cost to build. You’ll be able to get a better idea of total costs or cost per square foot.
Generally speaking, increasing the size of a project will increase the total project cost but not necessarily result in an increase in cost per square foot.
As you can see, the cost of building a custom home varies enormously based on numerous factors. This is one of the reasons we advocate being upfront about your budget and forming a partnership with you from the beginning. There is nothing worse than falling in love with a design, only to find out later that you cannot afford it. By involving the builder from the start, your team can work together to build your dream home while staying in budget.