If you look online or talk to a friend, this is the question that pops up more often than not.
It’s not an easy one to answer.
As always, it’s helpful to look at the time the article was written and the area you are considering building. I am writing this in June 2022, and we live and work an hour south of Jackson Hole, which has long been one of the most expensive places to build or buy a home in the country. That being said, I went on a hunt for articles that try to answer the question, and most said that luxury building would come in at $180-$210 a square foot.
That is not what we’re experiencing right now.
The luxury custom home you are wanting will start at $350 a square foot.
When people hear that number, they usually don’t believe us.
After they build, they tell us they should have listened.
How come homeowners estimate too low?
It’s complicated, but I’ll try to hit some of the main factors on the head.
INFLATION
Right now, inflation is the story. You are seeing it everywhere from gas to groceries. My small bag of “good” flour has gone from $5 to $8…we’re almost close to doubling. That’s the obvious. But there’s more to the story.
CONTRACTORS CALCULATE PRICES DIFFERENTLY
When you hear square footage prices, some contractors could be averaging the whole house (which includes the much cheaper areas of garage and/or basement) and some could be omitting those cheaper areas and be telling you about the main level living. As you’d expect, that could make a huge difference in what prices you hear. And without knowing what you want, they are taking a shot in the dark, nothing more. So don’t think those numbers are very accurate.
PLUMBERS ARE ALWAYS QUOTING FIXTURES IN CHROME
Even after you figure out your house plans and you ask for a plumbing estimate, if the plumber doesn’t know what you want they’ll quote a very transitional faucet in chrome (usually Moen Brantford) per area. Chrome faucets are consistently $200 or more less per fixture than other finishes , and that can add up quickly. I’ve yet to meet a client that wants their entire home done in chrome, so just know ahead of time that you are getting zero special features and all chrome when those estimates drop.
CABINET QUOTES NEVER INCLUDE HARDWARE
Cabinet knobs and pulls have jumped significantly with inflation, and if you start adding up each item per door, it can take your breath away. Know that it’ll make a huge swing in cost at the end, and it’s never quoted by tradesman simply because they don’t know what you want.
THE HOUSE OF CARDS
Do you change your mind a lot? If so, it will cost you. Framers aren’t going to frame and then reframe for free, even if they gave you a quote. They have to be paid to stay on the job. And one decision affects the next, so make sure you have as many decisions done as you can before you start. Then stick with it! It’s “easy” to change your mind on paper. But once construction starts, it gets much more complicated (and expensive).
TRADESMAN SHORTAGES
This is the story across the country, but in Star Valley, we’ve always been short on tradesman. If you are coming from an area where big companies could schedule tradesman exclusively to their own interests…get ready to throw that out the window when you move to a small town. There are only a few plumbers and electricians; roofers and painters. They are being pulled from job to job to job, and they are stretched very thin.
As I type, there is a 2-3 year backlog with all the reputable builders. When homeowners jump in and try to run the project without a general contractor to get things going, they’ll find it gets even harder. Tradesman don’t like those jobs because they are usually chaotic, and they’ll give the organized projects under a general contractor priority. At this time, some have stopped taking homeowner-run projects because they are too much of a headache and there’s no end to the work in sight with GCs (general contractors).
WHAT TO DO
I know some of these thing are hard to hear. Building a custom home can be a hard, messy world.
Being equipped with knowledge is your best bet. Talk to a trustworthy person in the area, and then BELIEVE what they are saying. Learn terminology and take your time. It may sound counterintuitive, but if you are kind and patient, the people you hire will move heaven and earth for you. We understand this is one of the most stressful things you’ll ever do.
Get your plan put together as best you can on paper. Hiring an architect for your plan is recommended, a contractor will help you understand pros and cons of the plan for your area (as well as keep the project organized with quality control), and an interior designer can help you select items and get your home details figured out so you can get accurate quotes…not just a shot-in-the-dark number. Once you have accurate numbers, you’ll know what to keep and what to cut.
If you can’t hire an architect or designer to help with your new home or remodel, take the time to find a good contractor at a minimum. (And if you are a person that thinks that’s outlandish, we live in an area with only a few spec homes. Almost every home in our rural area has to be custom). Waitlists are a million times better than shoddy craftsmanship. Decide as many details as you can before you start, from plumbing fixtures to flooring to cabinet door styles, so you get accurate numbers.
As always, this topic is more complicated than one blog post can answer, but I hope the limited information here helps someone.
Have more questions? Feel free to send them via my contact page.
This is such a great post Tawna, because as you pointed out, doing an online search will most definitely result in inaccurate information. We love that you pointed out the regional aspect. Being in the Pacific Northwest, we are seeing even higher costs, and it has become painful to relay this information to our clients, so we have a similar post on what it costs to build in our location. It certainly varies from region to region, and will continue to fluctuate. We often refer to the “Cost vs. Value” report because it reflects regional pricing and is updated annually!