Originally Posted by joasis
Sounds very high to me...I think I would explore a few more bids before buying into that expense...I don't care how many people say costs are in line for a given area, but material costs DO NOT vary that much across the country. Unless framers and others are making 200% more then a lower market, there is no reason for a small shell to cost more then a finished custom home..anywhere.
Aftwer talking with other GC's across the land and following many forums on building costs, it seems the market labor and land costs (lots) are the primary reason for seeing skyrocketing home prices. I can build and sell a 1200 sq ft home here for 95k, but the lot only cost me $3000...same home in OKC, 145k....
I used to live in Rockville, Md., and I wonder what 2x4's cost there now compared to what i am paying for them?
Real estate pricing has nothing to do with material costs, it's mainly features and location. i.e. a House overlooking Puget Sound in Everett, will run you about $150k for a 1200 square foot home. Same house up in Stanwood overlooking puget sound with a view of the islands and overcast of the sun, will run you $300,000
Or you can go into Monroe, have no view of anything, and same house will cost $100,000. Or up in Sedro-Woolley, same house will run you about $85,000.
Assuming the land is the same for each (size of yard) same floor plans, everything.
DO not at anytime assume custom homes are cheaper than renovations, when there are far too many factors that determine the price of a home on a real estate market that veries every 10 miles. LIterally.
Also, if you're in a neighborhood, all the houses are $300,000 houses, one of your neighbors sells their house for $250,000. That neighbor devalued your home $50,000, meaning when you go to sell your home, or buy a brand new home in the same neighborhood, and it has the same floor plan, that home cannot exceed $250,000 because its value has been declined because of the neighbors.
Real Estate is a big family biz in my family.
That said, regarding the cost of $125 to $150 psf, in my area, you're talking $250 to $300 per square foot for an addition.
What also factors into the price, is manpower (how many employees) timelines, materials (to include how long it will take to get them, how much materials will cost, what type of materials, etc) and code conformaties (recepticle every 12 feet, etc) and then how much that person is paying each member of his/her crew etc. etc. etc.
Overall, $125 to $150 is a steal.
But do not EVER compare a homes cost to remodel vs buying new, nor EVER compare home values, when home values DRASTICALLY change every 10 miles. Is there a gas line by the house? is it by a highway? is it by a city access point? is it in the boonies? is there water nearby? does it have septic? sewer? what kind of siding does it have? does it have a swimming pool? what size garage? how many rooms? what kind of light features does it have? deck? how big? what shape? built in barbecue? how big? does it work? does it look nice?
Too many factors to discuss on the internet.
I will agree, you DO need to get multiple bids, you should always get at least THREE bids minimum. Also, consider costs of having inspectors come in to check the work. etc.