TYPICAL COSTS TO EXPECT WHEN HAVING A NEW HOME DESIGNED AND BUILT

What can you expect to pay for the services required to design and build a new custom home? I get asked by people all the time ..."what will it cost?"  

Well, no project is the same, no architect, design firm or drafting company is the same, no builders are the same, so the best way I can break it down is this:

 What level of final product do you want, or can you afford? I compare it to buying an automobile.

If you want a standard economy car expect to pay far less than if you want a Rolls Royce.

With that, here goes an attempt to help you understand the differences. I know many areas of the country, let alone the world, will be significantly different, but this is the norm for the Southwest (Arizona California, Utah and New Mexico) based on 30+ years of designing here and across this great nation.

You expect Kia or Economy sized Chevy quality:

PLANS: You won't hire and architect, too expensive, you will hire a drafting company or maybe a professional design firm. You will pay between $3 and $7 per sq. ft. for the livable area of the home which gives you the design and plans then figure on another $5,000 to $10,000 for engineering.

PERMITS: Each area is different. Arizona between $4500 and $7500 for smaller homes. California can exceed $25,000. New Mexico and Utah vary from $2500 to $10,000 depending on what part of the state. 

BUILDER: Some builders will do a cost plus, some will bid the entire job with their profit and overhead already in the price. Either way you will typically pay between 8% and 12% of the total cost of labor and materials for smaller homes.

Now, let's say you want something a little bigger but not too expensive, maybe a Dodge Charger or Chevy Malibu, or a Genesis.

PLANS: Now you might still find a drafting service that can handle this level of design but be careful, the more likely choice would be a professional design firm, architects are still a bit out of your price range. You will pay between $5 and $10 per livable sq. ft. for design and plans. Engineering will be a bit more $7500 to $12,000.

PERMITS: Permits will be slightly higher but not significantly, so I'll skip listing the approx. amounts.

BUILDER: The fees for builders will remain about the same as for smaller homes.

Okay, now we are jumping up to Mercedes E Class, Jaguar, Lexus, Cadillac.

PLANS: Now you want a Professional designer or Architect and the fees should be about the same for those who design this level of home. You don't want bigger is better, you just want better. The fees shift, for the most part to a percentage of the construction costs from the before mentioned per sq. ft. fees. You can expect to pay between 6% and 12% of the cost of building the home, not counting the land. Understand that most of the time, the higher the fee, the better the talent and experience of the person or firm you are considering will be, but do your research, because that is not always true. You will almost always get far superior talent, experience and quality at these fees, which homes at this level require. That percentage almost always includes all the engineering required to complete your project as well, an all in one price so to speak. In addition at this level of home bringing an Interior Designer is a good idea. They will save you in time and cost savings almost as much as they charge, typically $15,000 or so.

PERMITS: In some cases permits are included at this level in the plan fees, but expect that to push the fees to the higher end of the scale. Homes in this bracket are usually 5,000 sq. ft. to 8,000 sq. ft and permits will run between $12,000 and $20,000 in most areas, California in some places double or even triple that amount.

BUILDER: Now you are entering the realm of the better quality builders. In this price range, which will typically be between $1 million and $4 million expect to pay the builder 15% to 20% of the construction costs as their fee either separate or included in the total contract price.

Time for the big boy and girl pants...You want it all, you want the Rolls, or the Lamborghini. Your budget is close to unlimited. You want the best and know you'll have to pay for it.

PLANS: Now you are in the exclusive club of Architects and professional Designers that are the best of the best. Like art, sometimes that is in the eye of the beholder. You'll find someone who designs homes that speak to you, that call you, that make you weak in the knees and you are willing to pay whatever it takes to have that person or firm design your home. Supply and demand Dahling.... no pun intended. These projects can take well over 2 years to design and create the construction documents. You will be paying 15% to as high as 25% of your construction budget to these firms and individuals. And, if this is truly the level of home you demand...they will be worth every penny if you do your research. That is an all inclusive fee that covers design plans and engineering. You will still want the perfect interior designer and that can run you between $15,000 and $75,000 depending. I have shown a couple of my designs here for this category, my fees are not in this group, they are in the last group, but I am a small office and do not have to pay overhead or wages for a big staff.

PERMITS: Permits can be off the charts in some So. Cal locations for homes like this just suffice it to say, if you have to ask you can't afford it. In other areas $20,000 plus at least.

BUILDER: The short list of builders in this rare air are typically in the 20% of the project cost area. It can vary widely, but the bigger companies that can handle homes of this level have big staffs, lots of employees, and lots of overhead. Since a build like this can be two even three to five years, they charge accordingly. These are the homes that, all in, will cost you $700 to $1000 per sq. ft or more in most areas. and $1500 and far more per sq. ft. in S. Cal. The high end of this is so ridiculous I won't bother but One Malibu house I know of was listed for $85,000,000.00 for 16,000 sq. ft. That's well over $5,000 per livable sq. ft. Of course that did include the lot valued at about $15 million.

I hope I have clarified a few things and not made them clear as mud. This is not intended to be a guaranteed expectation, because as I said, every home/project is different.

If you have questions, feel free to contact me through LinkedIn messaging.