One of the challenges of building a new home is that it can be difficult to estimate your overall costs. The total price tag for new residential construction can vary significantly depending on your location, the size of the home and other factors.

However, despite the challenges involved, estimating costs is a key part of building a new home. Without a good sense of how much your dream home will cost – and how much you can afford – you’re likely to experience frustration and financial stress.

Building Estimate Basics

A building estimate is the projected cost of building your new home. If you’re working with an architect, she will develop a preliminary cost estimate for you once she has drawn up some rough sketches. If you’re not working with an architect, your general contractor will develop a comprehensive construction cost estimate before work begins on your home.

Factors that are considered when developing the building estimate include:

• Equipment
• Labor
• Materials
• Time.

The cost of each of these elements can vary significantly based on where you are located, current market conditions, materials availability and other factors. In addition, these numbers aren’t static, and may change as you proceed with building your home. However, this estimate should give you a rough idea of what your new home will cost.

Determining Home Construction Costs

What if you are in the early stages of planning a new home, and are trying to get a sense of average costs and what you can afford? With the average cost of building a new home ranging from between $80 and $200 per square foot, it can be hard to figure out what your specific expenses will be.

One way to get a better idea of the average building construction cost in your area is to talk to local builders and architects, who may be able to give you a ballpark estimate about the price of materials and labor. Visiting newly constructed developments in your area and inquiring about cost is another way to gather information.

Other steps to take include researching the cost of obtaining building permits where you live, as well as any finding out about any unique code requirements in your area. In addition, you can start to consider what kind of features and fixtures you want in your new home. If you know you want an unusual home design or a top-of-the-line kitchen, you can begin to anticipate the cost.

Software and online cost estimating tools can also be helpful as you develop a home construction cost estimate. Some of these tools may be quite detailed, breaking down all the unique costs involved in building a home, from permits and land to the cost of light fixtures.