Builders, cost per square foot?
 

We are looking for a home in the lakes region and just found a lot that's interesting...whats the average cost per square foot to build in the area right now? Any input/advice is greatly appreciated!

Minimum of 200.00 for basic up to 400.00 for high end.


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Unless you are in no hurry, I would go with a resale rather than new construction. The decent contractors are committed a year or two out, we’re told.

We're building in Dover at 307 sq currently imagine it will go up once we finalize finishes.

I know prices have increased, $200.00/sq ft puts a 2000ft house at 400K for construction costs only, it seems to me that's way over what a basic house would appraise for.

Prices of building materials especially wood and siding have doubled since Covid. Appraisal always depends on location.

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Prefab homes
 

Because of the demand for stick-built and only a handful of quality builders, owners have looked to prefab homes. Just bring your plans to one of the local offices and they will work with you. They can provide project management. They can build to walls and roofs and you finish the exterior and or interior or they can do a turn-key job. They also provide a warranty beyond the 1 yr requires by state law.
Because of the control environment work area, the cost per sq foot is minimal. Often times stick builders leave the materials outside and often get stolen.
Here is a link to a local prefab builder. He works with local suppliers and uses local wood when available. Many of his homes are in the Lakes Region.
https://bensonwood.com/

I hear you - if I subtract my land value from what my house at home is worth I come up with about $120.00 / sq ft vs a realistic valuation based on recent sales. (I've had some friends move recently for price comparison) I'm not doubting you I just don't see how the math can work with a rolled up all in cost vs. what a bank would finance. I'm sure I'm missing something.

Bensonwood does a nice job with their prefabs but they ain't cheap. You could easy pay over $350 sq ft for one of their unity prefab homes. Add the site in and I don't see how it makes financial sense

The build cost is separate from the land cost but remember it all depends on location for the assessed value which is what your ability to finance would be based on. I can tell you from experience 120.00 for a build cost in this market will not cut it at all. Remember this includes everything from excavation and land clearing to foundation to window and siding to flooring to appliances to plumbing fixtures HVAC and on and on.

I have built a few homes and I have been in the construction industry for years this is based on experience and the current market


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As has been mentioned in other posts, nothing is making much sense in this Covid real estate market. If you are coming from out of state and have money to burn, these prices will not dissuade you. It’s the people that are on a tight budget that are going to be squeezed out.

I don't doubt you, I'm only trying to figure out how the numbers work - this is not an argument by any means at all.

A close friend just sold a pretty high end home in Londonderry where I live. Selling price was 750K, the land is worth I'd say 150K so that gets me to a house only price of 600K. The house is 3000 sq/ft, if I divide the 600K by 3000 sq/ft I'm at $200.00 sq/ft on the upper end of the scale.

If I give the land a higher value it drives the house sq/ft price down, if I add the sq/ft of his finished basement that also drives the sq/ft price down

Again I don't disagree with you I just can't see how the numbers would work. If your building a house and using a bank it's all got to balance out. At least that's how my brain works.

You really cannot compare a resale to a newly built house. The numbers do not have to make sense to you, but it’s what people are willing to pay right now.

I don't disagree with you on that

The same person I mentioned is moving to Florida into a new build down there, those details I'm not totally up to speed on but will ask him.

I do know he's paying about 765K for 2600 sq/ft with the pool and Leni right on a golf course around Sarasota. (it is not a 55 and older).

If I do a quick calc based on a guess of 100k for land I'm at 665K for 2500 sq/ft = $266.00 sq/ft.

I'll call it good with this post unless I figure out where I'm going wrong - I'm a numbers guy and just not getting it. I never claimed to be the smart guy in the room....:) Thanks for the good discussion

Unfortunately, the math doesn't work that way. If you find an exact duplicate of that 150K lot and build an exact replica of that 3,000 SF house, it's generally going to cost you more to build than it would to outright purchase the home you're copying. That's part due to depreciation and the fact that, over time, cost of materials and labor increase.

As another point of reference, your homeowners premium may be based on a home rebuild value that significantly exceeds what you could sell the home for.

I say purchasing a resale is the way to go. You are more likely to get what you want, where and at a more reasonable cost. And throw some of the money saved into some renovations to make the home even more perfect.

I’m a CPA and in the construction industry and I get it. As Sue said you cannot compare new and existing.

If your planning on building for 120.00 your going to end up with below contractor grade materials.

A key factor is you are not considering the current demand for builders which drives up prices along with the skyrocketing material costs. In my Development they cannot find enough builders for the lots they want to develop with spec houses.


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I am in Florida and I have been here for six years now. I live in a development that is still being built so there are resales as well as new homes. The resales typically sell for less than the new homes, although right now during Covid, and because of lack of inventory, the prices have skyrocketed. We have gone from at least 20 homes on average for sale down to two right now. Homes stay on the market only a few days if the price is right and with multiple offers.
There is a base price to the new home but you can add as many options and upgrades as you want. This really determines the price per square footage. So in this regard, you cannot compare one 3000 square-foot house to another because each one is different depending on how much extra they spend on add-ons.
And just like everywhere else, there are some lots that are better than others and they carry a higher premium.
So I think you will drive yourself crazy if you try to apply the same ”Formula“ to each property.

I think you would be hard pressed to get even a basic house built for $200 a sq ft today. They say Lumber increases from Covid add an extra 20k to a build and all building materials have gone up.Sent from my SM-G950U using Winnipesaukee Forum mobile app

I agree with you. 200 is extremely low.

I must agree... I think Joey’s higher numbers are closer to a sq ft cost. Having just completed a large construction project at my home, $200.00 per sq ft doesn’t even come close.

Dan

Agree. Based on recent discussions with builders around the lake I would say $325 - $350 is about market.

I agree with your numbers as well.

Dan

It's Variable...
 

Values of houses on Florida golf courses tend to follow variable criteria. :eek2:

Thanks Everyone! I agree that it doesn't seem to make sense unless you have money to burn. If you need a mortgage, there's no way that the house would appraise high enough at those rates to pass the appraisal contingency.

It's too bad, because we like the lot. But, it seems like waiting for an existing re-sale is the way to go.

I really appreciate the discussion!

Again appraisal is about location. If the location warrants you can spend 300 per square but if it doesn’t you are correct you can overbuild for a neighborhood and not be able to get a mortgage.

Without us knowing the location you are considering it’s hard to give you an opinion based on your situation


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I did the math, at 300/sq ft we would be over built by more than 100k in a neighborhood that maxes at 600-ish...so it totally doesn't make sense :(

That’s too bad. [emoji20]


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That's really where I was going with my "calculations"....sorry to hear that. Just make sure your not missing something that swings it your way

If I remember correctly, your original post said that you wanted to spend $350,000. At $300 a square foot, you could only build a 1000 square-foot house, because you still have to buy the lot. And I’m not sure anybody lets you build anything that small anymore.

I'm looking at a new construction listed in Londonderry, $699,900.00 for 3245 sq/ft, been on the market for 82 days which is kinda weird.

I know good lots in town if you can find one is 150K, that gets the house to $549,900 which equates to a sq/ft price of $169.50

Even if the land was free it rolls up to $215.68 sq/ft

Yes for some reason your way better off finding something already built

On zillow.com...
 

You can look up current for sale and past sold properties, new construction spec and resale and it will tell you value/ sq. ft. Although that may include land.

Is that the new house right up next to Interstate 93...?

no it's in a desirable southern part of town about 5 miles from exit 4.

We would bump up our price range to build, just so we could have exactly what we want in a house, so the house would be about 2000 square feet(so a 725k house in a neighborhood that maxes at 600k). Im super conservative with finances, so we would like to buy in the 400k range, but after looking at our desired area, we are going to have to bump up to get what we want.

Again, it just doesn't make sense to build where we're looking. We are much better off buying existing construction than trying to build in this high flying market. I really appreciate the help, and now I understand why a lot in a desirable neighborhood might sit.

The house across the street from me, a 30X40 A frame built in the 60's was purchased a few months ago for 550K. The women was going to tear it down and build a new house but builders were telling her that could take two years.
So she decided to gut and rebuild the place. She told me she got an estimate of 260K but as of a week ago she told me that price has gone up 70K and that doesn't include a new septic which it needs.
The place is going to be about 1600 sq ft not counting the walk out unfinished basement.
I think she's going to have 400K into the rebuild by the time it's finished and it's still an A frame. :eek:

Thank you. Very helpful!
Are talking Mass. or Meredith?
Funny- I'm talking about 60's buildings!

I know you can't know, but I'd be interested to find out how much the current building is insured for.

Meredith, just let me say that she is sparing no expense. They are doing a fantastic job but it's still going to be a million dollar A frame when done. :confused:

Recent sales in the lakes area are a good indicator of cost vs value. I know my home value on Zillow has increased 220k in the past 60 days


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New construction in the Lakes Region for sale on Zillow:

Bean Hill Road on 2 acres, 1924sqft, $339,000 ($176/sqft, including land cost)
Butternut Lane on 0.23 acres, 1738sqft, $369,000($212/sqft, including land cost)
Sterling Drive on 0.23 acres, 1859sqft, $389,000 ($209/sqft, including land cost)

Based on this, if you exclude land cost it seems like per sq ft can be as low as $150-200.

I have deleted my posts concerning costs- I have been using some incorrect information so responses would be moot.
Thanks to you all.

We have been looking at land in Alton and are thinking of building/moving north since there isnt anything that appeals to us on the market. I am struggling with the concept of $300/sqft without land. it just doesn't make sense to me. To build a 3000sqft house and be $900k in? I don't see that is being possible. Yes, I know materials are up a bit, but not enough to push pricing that high. An extra $20-30k in materials and isnt going to push an overall number that high.

Starting to research builders now to get a real feel for it to see if this makes sense.

Bensonwood has been mentioned a few times as a good prefab option. Is it me or is their stuff on the website really ugly? I am looking for a craftsman/adirondack look.

Understand your frustration. I also have a building lot in Meredith. Yes, material costs add to the budget. Building today is all about skilled labor and availability. Builders I spoke with are two to three years out. Pick and choosing their work. I spoke with one and was told they are scheduling nothing under 5k sq ft! With that said, we are waiting. Will it get cheaper. Don’t know

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Bensonwood on TOH
 

I agree that the pix on the website don't look as nice as what I might want to see. Many shot in the dark with lights on instead of bright sunny cheery photo approach. They also seem to favor metal roofing, which I haven't adapted to yet, but if you're going to cover it with solar panels, then aesthetics are less important anyway. Here's a bit on Bensonwood from This Old House
https://www.youtube.com/watch?v=jqXmNeT1uKs. This focuses on construction, not appearance.And the Weston house project a fun video
https://www.thisoldhouse.com/weston-...-house-project

Higher?
 

I think at this immediate moment the cost per square foot is even higher than $300. More like $325 to $350. Which I agree - hard to comprehend how someone justify/afford a 2,500 square foot home for ~$875K but such is the case. I wish no harm to anyone or any business but if we do not see some sort of economic downturn or a crash in the housing market where builders are desperate for work (which is NOT right now) we may not see $200 sq/ft for a long time.

The cost of rules and regulations adds a lot to the price also-a lot!

The people across the street from me have 500K into a 2400 sq ft rehab.

that’s 200 sq ft for a rehab convert that to a new build and you are way over 300/350 sq fy

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In theory, high prices should draw more (builders) into the market, leading to lower prices. At this point, we are paying people, in a sense, to not work, so they aren't moving to other industries. It's like the gov't paying farmers to not plant so that prices will be artificially high.

That is a theory that has never really worked in the construction industry. I’ve been in it all my life. Has far as paying people not to work I do not agree with that either in the construction industry. You need skilled tradesmen which are not the people staying home collecting unemployment

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Incentives?
 

Understood. But if we are paying service and tourist/travel industry people to stay home, there has to be some recognition that these jobs will not all come back. Regardless of the pandemic, we need more people in the trades, and we need apprentices as well as journeymen.

You bring up a good point about the need for apprenticeship and journeymen. NH is difficult for both as I believe they must be licensed as such here in NH. Also, many tradesmen are hesitant in hiring because they get pouched by others once trained. Would like to see something done at the state level to welcome the hiring and training of apprenticeships.

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If you would consider a log cabin, I can give you contact info for the guy that built our log cabin up in Clarksville,
He is from Rumney and has been in the log home business since the 70's. He has built well over 200, from small cabins to full size homes.

He also built the cabin that is Abe's Awesome Armaments
In my opinion he does great work, and his prices are surprisingly reasonable

<a href="https://imgur.com/AQ5jjSO"><img src="https://i.imgur.com/AQ5jjSO.jpg" title="source: imgur.com" /></a>

<a href="https://imgur.com/FYqSW4X"><img src="https://i.imgur.com/FYqSW4Xl.jpg" title="source: imgur.com" /></a>

J, I can't see you in a log cabin...[emoji6]

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No log for us this time. I'd do it but the wife isn't having it. Leaning towards post and beam.

Lumber prices doubled to $1000 BF in 3 months. This will slow down home building a further push up the prices of existing homes this spring.

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Read that same article. Last week, we signed off on a kitchen renovation scheduled for next winter and the raise in lumber pricing was brought up. Still moving forward, but we do have some hesitation. A positive to this could be the way demolitions are done. Reuse of existing lumber should be the priority instead of a dumpster. This being written by someone who has fished in construction dumpsters for decades


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I ripped apart an old deck in November and I was shocked by the prices then so I held off buying the lumber. Now I'm not sure if I should wait some more or buy this spring? It's a back deck that we haven't ever used because it was small and in bad shape so we won't miss it if I wait longer, maybe until fall.Sent from my SM-G950U using Winnipesaukee Forum mobile app

Why ?

Just curious.

Not only has the price gone up it is getting harder and harder to get. It's just not available. If you are doing a project order now because everything is starting to be weeks out.

Just like everything else, supply & demand.Sent from my SM-G950U using Winnipesaukee Forum mobile app

When ever I see a new house being built I will grab the 2x4 cut offs. They are great for getting the stove going in winter and the out door fire pit in summer.

Just saw another report that said lumber could increase another 30 - 35% before leveling off. It also said the price increase as of now has added 25K to the cost of the average new home.

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Revamp an Old thread...
 

Just curious the cost today per sq foot to build, and more important the price to build on the Lake, given all the permitting etc.

Thanks Much

I think today it's, whatever the customers can bare.
Most of the good builders are out 2 years and the ones that aren't, aren't for good reason.
One of my neighbors is having a new waterfront home built. He waited over a year for the builder to start and was told it would be another year to completion.
Sorry, that doesn't answer your question but whatever prices you get you can probably add another 20% to that as the final cost almost always overruns the estimate.

The lake as compared to inland other than land purchase and development costs really don't differ.

It is your expectations that add directly to the cost.

People tend to fall in love with certain ''in'' styles that add either additional cost or require a compromise in the quality of construction to stay within budget.

Some are actually a bit faster now...
But they have a system that keeps the customer on track.
Customers don't always realize the number of decisions that need to be made, and can some times fall into delay and stall a project.

Some builders just want to build, so the customer does the general contractor work... and that can really slow down a project, because they don't have a structure to force them into decision making.
Since they don't have the experience of a seasoned GC, they are unable to run multiple tracks at the same time or understand how lead times need to be scheduled to make a project go smoothly.

The better known contractors tend to be building larger projects with higher end finishes... so for windows or doors the lead goes from three weeks to three months. Those will generally get installed before other phases of a project, and a seasoned GC will have that all scheduled out.

I recently built a house in Lafayette, LA with Gatte Construction, a local company. The total cost for a home around 1000 square feet came out to approximately $130,000. This figure included all expenses related to construction, such as materials, labor, permits, and any additional fees.

I wish we could do that here!

Can't even come close to that in New England.

I would guess the labor costs in the south are a lot less.

And the fact that many are built on slabs, don’t have full hvac and aren’t as well insulated.

totally correct another scenario is when the customer want to buy there own materials thinking there saving money.WRONG. its amazing how many people dont understand wholesale to retail.

I think some of that is going away though as the industry standardizes...
They also have to deal a lot more with things like termite proofing than we do.

I know Florida was CBC with insulated interior stud walls.

But our higher labor costs go through the material supply chain and effect the on-site construction labor... so I think that labor may be the biggest factor.

Another item can be efficiency of the yard and contractor.
Contractor specific yards can be really efficient.