Planning to build a house? Here is where your money will go.
Finding a house that perfectly fits your needs can be challenging, to say the least. Chances are, you’ll have to compromise.
A custom-built home, however, eliminates compromise: Not only will you get exactly what you want, the thinking goes, but you’ll have brand-new materials and systems that won’t need repair in the near future. But how much will it cost — and what will you really be paying for?
A recent survey of residential construction companies by the National Association of Home Builders broke down the cost of building every component of a home, including the builders’ markup and other overhead expenses that are ultimately reflected in the final price.
The results are based on the typical home built by those surveyed — a 2,776-square-foot house on a lot of about 0.4 acres — with a total cost to the buyer of $427,892. Of that amount, $190,132 covered the cost of the lot and the contractors’ overhead and profits.
By Michael Kolomatsky, New York Times