Is it cheaper to build a home if you already own the land?
Building your dream home is an exciting and fulfilling experience. For many people, a surprisingly difficult part of custom home building is finding the right place to build. So you might feel lucky if you already have a plot or acreage. While it may be cheaper to build a home if you already own the land, you still have other costs to consider before getting started.
The Cost to Build a House
Building a home requires a financial investment, though the cost varies widely. The average cost of building a home in the United States is about $300,000, with some buyers spending as low as $100,000 or as high as $1.5 million or more. The biggest factors affecting home building costs include:
- Location: Where you build your home significantly impacts the cost. For instance, building in a rural area may be less expensive than in an urban setting due to lower land prices and construction costs. The exact site conditions, including the amount of preparation required, are also major factors.
- Size: The size of your home contributes significantly to the overall cost. Larger homes require more materials, labor, time to build, driving up the price.
- Design: More complex designs and features such as vaulted ceilings, custom cabinets, and intricate trim increases the cost to build a house.
- Materials: High-end finishes and materials drive up construction costs, while more basic selections save money.
Building on Your Land
If you already own the plot or acreage where you want to build a home, you avoid paying land acquisition costs, but you must still consider several expenses associated with building on your land.
- Site preparation: It’s vital to prepare the site before construction begins. Site preparation includes clearing and grading, soil testing, land surveys, driveway construction, and utility hookups. This can cost anywhere from $5,000 to $50,000 or more, depending on the lot size and location.
- Design and planning: Designing a floor plan is not a do-it-yourself job. Partner with a build-on-your-lot home builder who can customize a floor plan to meet your needs. Be aware that design and planning costs range from $5,000 to $20,000 or more, depending on design complexity and build location.
- Construction costs: Construction is the most significant home-building expense, with costs typically ranging from $100 to $500 per square foot.
- Landscaping: Once construction is complete, the final step is to landscape your property, which includes planting trees, shrubs, and grass, as well as installing hardscaping and outdoor lighting. This may cost $5,000 to $20,000 or more.
Build on Your Lot in Oklahoma City
If you’re ready to build a home on your land, turn to Landmark Fine Homes for assistance. We’re the ideal partner whether you already own a lot or need help finding one in your preferred location. We also offer custom and pre-built homes in planned communities around the Oklahoma City metro area. To learn more about your custom home building options, please call 405.400.8616 or contact us online.