“The first thing you need to get an accurate price for your new home is a good set of plans and specifications. You need these to be able to get individual cost estimates for the different aspects of your home.”
A New Home Cost Calculator Works
You want to build a new home, but you have no idea what it’s going to cost. It’s important that you get the number right so you don’t run out of money or you borrow enough.
Here are your options calculate the cost of a new home:
- get accurate quotes for all labor and material
- visit identical new homes on the market and deduct land and realtor cost
- use a magic calculator that allows you to enter one number and it figures out the rest
- throw a dart at a dartboard filled with possible numbers
- guess wildly
Two of the methods are foolish, one’s very hard, one’s risky, and one will generate a fairly accurate price.
But which is which? The third method is the fastest and can produce an accurate total-cost estimate.
Is a New Home Cost the Sum Of It’s Parts?
Each major part of building a home represents a small part of the total cost. This is basic grade-school mathematics.
New cookie-cutter houses are the easiest ones to calculate. The houses are often similar in size and have the same components. It’s important to realize many use the exact same subcontractors who charge the same per house, for the most part, to do what they do.
You can determine what each part of your home costs after you move in once you know the final bill. For example, let’s say your new home total cost, not counting the land, is $485,000. You know the footings and foundation cost $45,000. That means this part of your home was 9.2 percent of the total cost.
The issue is you want to know the total price while you’re in the dream phase and it’s not easy to get all the individuals bids for every aspect of the house.
What is the First Thing I Need to for a New Home Cost Calculator?
The first thing you need to get an accurate price for your new home is a good set of plans and specifications. You need these to be able to get individual cost estimates for the different aspects of your home.
Where Can I Get a New Home Cost Calculator?
I happen to have a new home cost calculator. You just enter one number and the spreadsheet fills in all the other numbers. Here’s a partial screenshot of what it looks like:
It works BEST if you get bids on the mundane aspects of your project like:
- electrical work
- lumber package
I would then enter just one of the above numbers in the spreadsheet and allow it to calculate all the others and total cost. Write down what the total is.
Then do the same process with the other three numbers. Add up the four total-cost numbers and divide it by four.
This should give you a fairly accurate total cost number.
What Causes The Cost Number to Be Inaccurate?
Specialty items like extravagant kitchen cabinets, countertops, exquisite lighting fixtures or anything NOT normal will yield inaccurate total cost numbers. My cost calculator works best on cookie-cutter houses, but it will work well for custom homes if you use it as I say above.