Can you build a house for less than the 100,000?
It is possible to build a house for less than $100 thousand. In today’s market, it is difficult to find a home built for less than $150,000 and building can be a cheaper alternative to your dream home.
If you’re looking for a new home on the market, the current seller’s market can be intimidating and even frustrating. Homes are selling out in record time and you may have to get into a bidding war if you find a home you like. Building a home can be a less stressful option, especially if you discover the cheapest way to build a home.
Is it cheaper to build a house or buy a building?
According to Bankrate, construction is cheaper. The median current home price is $309,800 and the median cost to build a home is $302,817. But keep in mind that these costs are national averages. Every market is different.
If saving money is your biggest concern, you’ll want to research home prices versus building prices in your area. And if you decide to build a home, there are ways you can cut costs. Let’s take a look at your options for the cheapest way to build a house.
Be your builder
Roughly 40% of your home building budget will go to labor, including 5%-15% to a general contractor. You will save thousands by being the building owner.
Each state has different laws, but you will usually need to apply for an owner building permit, available through your local government. This will effectively make you the general contractor in your home.
How much the work will you need to do
The more work you can do on your own, the more you will save. Of course, not all the owners are qualified to handle every aspect of the home building process, which means you’ll still be paying for some labor costs.
If you are particularly skilled, you can build the majority of your home yourself. Interior work, in particular, is one of the things most people feel most comfortable completing. And even if you have very little experience with craftsmanship, you can do some of the easier tasks: filling in nail holes, sanding, painting, etc.
But even if you have extensive experience in construction, there are some specialized jobs that you will likely have to do without. These are the ones that require either years of study or special licenses.
- Architect
- Plumber
- electrician
- Bishop’s owner
- HVAC installer
- concrete contractor
Benefits of being your own builder
Being a builder yourself might not be the easiest job you’ll ever get, but there are quite a few financial benefits.
Saving Money
Of course, the biggest benefit is the saving money on labor costs. At the very least, you will save money that you would have paid the general contractor. Then, depending on how much construction work you’ve done, you’ll also save money on subcontractors.
If you are confident in your knowledge base or comfortable with your research skills, being your own builder is the cheapest way to build a house.
Greater cost control
As your own builder, you will also have greater control over every part of the home building process. You will be the one who selects the materials, appoints vendors and subcontractors, and decides where to cut costs. This will give you more control over how much you spend.
This may work to your advantage. For example, if the general contractor tends to work with some of the subs, they may not be the cheapest in town. You may be able to find someone to do this work at a lower cost. At the same time, without long-term relationships, the seller may charge you more than the general contractor.
How to reduce construction costs
No matter how much building you decide to do, there are a few other choices you can make that will help you cut back on expenses as you try to find the cheapest way to build a home.
build a box
A simple square or rectangular house will be the cheapest to build. By not having any elaborate corners or protrusions, everything from slab to walls to ceilings will be faster to build and therefore less expensive to build. Then, you can use landscaping and outdoor elements to add visual interest.
Build instead of out
When you are trying to figure out the cheapest way to build a house, consider building a taller house instead of a larger one. By increasing the space through the second (or third) floor, you’ll reduce expenses on two costly components: the foundation and the roof. So you get the same square feet of space but at a lower price.
Revisit the material
Some materials are naturally more expensive than others. If you are looking for the cheapest way to build a house, then you should compare the prices of the materials you use. Brick walls, for example, will be more expensive, as will tile roofs and hardwood floors.
If you are building your dream home, you will have to figure out the right balance between budget and value.
Skip customization
The more you customize, the higher your expenses. This is especially true in the bathroom and the kitchen. With an average price of between $500 and $1,200 per linear foot, custom-designed cabinets can really raise your costs. In contrast, stock cabinets from your local home improvement store will cost an average of $60 to $200.
Stick to a simple roof
The slope of the roof can also affect your costs. The steeper the slope, the longer it takes for framing and lathing, which leads to higher costs. For a 1,500-square-foot home, a nearly flat roof with a low slope will cost between $6,000 and $15,000 on average. A gable roof will the cost between $12,000 and $18,000.
Source: custom homes
