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How to Estimate Construction Costs for a New Home

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Summary: Estimate new home construction costs by getting written bids from several construction companies outlining exactly what materials will be used. Consider the cost of flooring, light fixtures, exterior siding and appliances when building a new house. Make use of this information from a real estate broker in this free video on house financing.

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By Penny Smith
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Penny Smith has been in real estate for more than 14 years. She has a degree in architectural design and has received buyer and seller associate training, as well as CMA Training. She...read more

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Video Transcript

"Hello my name is Penny Smith and I am a North Carolina real estate broker. Today I'd like to talk to you about how to estimate the construction costs for building a new home. I highly recommend that when you decide to build your own home that you get multiple different builders quotes. Ask them to put it on paper. Ask them to put down on paper what they are giving you for this cost, what they are going to provide for you whether it be laminate floors or hardwood floors, stainless steel appliances that are all electric or stainless steel appliances that are gas. There is a huge difference between the cost of all of those and when you are estimating your cost know what it is that you want. Also know what it is that you are not willing to negotiate on and know what you are willing to negotiate for. There is a big cost difference in lighting fixtures. Go and recommend that you go and price what type of lighting fixtures you want. You can buy ceiling fans that cost $50 a piece or the expensive Hunter fans that cost $300 a piece and that will make a big difference in your construction costs. I highly recommend that you go in to as much detail as to even what the exterior walls will be made of, whether they are 2X4's or 2X6's. It will make a difference on the windows, the window sills, as well as the doors that you buy for your house as to what size exterior walls that you have. So when you are going and getting estimates be sure to know what it is that you want in that house and what type of siding that you want on the exterior. That is my recommendation to get at least four if not seven different builders to give you prices on building your home for you. Thank you and I hope you have a good day."

eHow Article: How to Estimate Construction Costs for a New Home

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