It’s exciting to build a home. You will finally be able live in the house of your dreams, with all the features and comforts you desire. Now you’re ready to start getting bids. That’s when you run into an unexpected, seemingly-unexplainable puzzle: The cost-per-square-foot conundrum.

This is why it’s so mysterious. It’s simply the fact that it doesn’t make sense to compare the cost of building two new homes based on square footage. A 1800-square-foot house might cost $100 per square foot. However, a house of the same size could cost between 10-20% more or less per square foot. Although they look identical, why is their final cost so different?

It is possible to break down the answer into three parts. The first is the question of square footage. The second concern is that of materials. The last consideration is buyer personality and needs.


SQUARE FOOTAGE – NOT ALL SQUARE FEET CREATED EQUALLY

The square footage of a property is a raw number. The square footage of a residence usually reflects a combination of many factors.

  • The design for the home. Cost will be affected by offsets and the complexity of the roof or spans.
  • This is the area of your above-ground, livable space. This could be your first, second, or third floor. A family room with two-story ceilings is often included by builders on the second floor.
  • This is a percentage of your garage’s square footage. Some builders add this to their total square footage, while others do not.
  • You can include a percentage of your underground spaces like basements. Sometimes, a finished basement or an unfinished basement is included in the total square footage.

This is why it can be so difficult to compare one new-built home to another, even though they have the same square footage. There’s an additional aspect that you should keep in mind. It’s how the home is laid out.

Individuals and families who are building a home will appreciate the variety of layouts available. This can have a dramatic impact on the cost per square foot. For example, adding a bathroom to the second level by using space from a hallway, room or closet, will undoubtedly make the space more functional and increase the cost per square foot. Bathrooms require more work than closets. A home with two-and a half bathrooms rather than one bathroom may have the same area, but a different cost per square foot.


MATERIALS – FOUNDATIONAL Elements and THEIR ROLE in SQUARE FOOTAGE COOST

Take a look at these two classic suits for men. Both are single-breasted and blue. Both have side vents, similar buttons and pockets. They are the same size and can be worn off the rack. Are they really the same size?

One suit is made from premium wool while the other is made with a wool blend. A closer inspection could reveal this. The suit made with premium wool has a slim lining while the suit made from a cheaper blend of wool has no lining. The wool suit is more comfortable and doesn’t have any synthetic scratchiness. Both suits will still perform well, but you may have to replace your second suit sooner or hire a tailor to do repeated repairs.

You would expect to pay more for a first suit, even though it uses the same amount fabric as the second. This principle applies to new homes.

As with fabrics for suits and other clothing, the foundational materials used in new home construction are varied. There are high-end products, middle-level products and low-quality products. Every builder will have a preference for the materials that are best suited to your home. Two homes of 2,000 sq feet could be constructed identically but with a different cost per square foot due to the materials used in construction.

This doesn’t mean you have to choose the most expensive square footage or you have to compromise to get lower-cost materials. However, these are important thoughts to keep in mind.

  • Premium materials are more durable and will protect your home without any problems. This will reduce your annual cost of maintaining your property in top shape.
  • Excellent warranties and other guarantees are a hallmark of high-quality products. These guarantees give you confidence and save you money in the event of a repair.
  • Because they are more thoroughly tested, better materials can mean less headaches. You’ll see the benefits year after year, even though they won’t be visible (mostly hidden).

Ask about the options and materials available to you when discussing your dream home with your builder. This will allow you to understand the cost per square foot.


PERSONAL PREFERENCES – THE FINISHING TOUCHES TO YOUR HOME

The last consideration in price-per-square-foot cost discrepancies is the way you want your house to appear and function. A high-end chef’s kitchen with marble countertops and top-end appliances will be more expensive than one with less bells and whistles.

Your cost-per-square foot may fluctuate with every aesthetic or utilitarian choice you make. You must not only stick to your budget but also love your home. People who build a home hope to stay there for many years. It may be a good idea to invest in more luxurious finishing touches and better materials if you plan to live there for at least 20-25 years. This is a cheaper option than remodeling later. It will be part of your mortgage amortization schedule and not a separate loan.


LOOK ABOVE SQUARE FOOTAGE TO OVERALL COOST

The cost of your new home’s sq footage is important, but it shouldn’t be the main deciding factor when choosing a builder. You should instead take the time to interview the builder and ask about the materials. Also, think about the amenities that you want.

It is best to consider the total cost estimate and not just the cost-per square foot. This will make you a more informed consumer and allow you to understand what you are getting for your hard-earned money.