500 Sq Foot House Design

a blueprint for a new home

As building material costs rise, homebuyers are wondering what to do: Build new, or purchase an existing home? The decision often comes down to finances.

The median price for a pre-owned home in May 2021 was $356,600, according to a news release from the National Association of Realtors; the Census Bureau reported the median sales prices of new homes for the same period was $374,400. So where does that extra $20,000 or so come from in new builds? Here's a breakdown.

Cost per Square Foot of a New Single-Family Home

Traditional brick home on green lawn surrounding by trees
Region Average Cost per sq. ft. Average Home Cost
South $110 $275,500
Midwest $129 $322,500
West $158 $395,000
Northeast $155 $387,500

Source: U.S. Census Bureau

These averages can give you a rough estimate in devising a budget, but the final tally will fluctuate according to these factors:

  • Regional labor costs
  • Cost of the land
  • Building materials – standard or top of the line
  • Square foot size of your home

Cost per Square Foot to Build a Custom Home

An aerial shot of a custom home from Daniel Barnes on Unsplash

In comparison, the price for building a custom home can be as high as $550 per square foot, depending on what you want. Upgraded interior finishing can easily tip the scales toward the million-dollar mark overall.

Percentage Breakdowns

Different aspects of building a custom home are going to cut more into the overall budget. Here's a loose outline from HomeGuide that shows how much of the budget different factors can cost:

Site Work 7 Percent
Foundation 11 Percent
Framing 18 Percent
Exterior 14 Percent
Major Systems (electric, plumbing, etc.) 14 Percent
Interior Finishes 29 Percent
Final Steps 7 Percent

Those with expensive tastes will quickly notice how the interior finishing percentages can swell, carving out a larger slice of total costs. As you design your new home, review the costs of adding molding, granite countertops, high-end faucets, and top-of-the-line appliances with your builder—before you buy.

A more cost-effective route is to purchase a home the builder has already designed. These do allow some flexibility to ensure the home fits your needs, and even if you toss in a few upgrades, the grand total won't rise through the stratosphere.

Should You Hire an Architect for a Custom Home?

There is no hard and fast rule that states you must retain an architect to design your custom-build home, and they can add a significant expense to the overall budget (fees range from $60 to $125 per hour). For a cost-friendlier option, you can purchase a custom home plan pre-designed, and then have an architect weigh in to ensure it meets local building codes.

Be Sure to Plan Ahead

Whether you're going with a production home or a custom home, make sure to establish a realistic budget with your builder and stick to it. Don't be enticed by nicer looking designs to add to your home if it puts you way out of budget; having a plan ahead of time will save you a lot of money and stress.

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500 Sq Foot House Design

Source: https://www.newhomesource.com/learn/cost-to-build-house-per-square-foot/

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