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Last week, our focus was the punch list and how to work with the construction team to get it right. This week, we'll shift back to planning and look at ways to save on the cost per square foot for your home.

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How to Save on Cost Per Square Foot

If you're planning to build a home, you've probably heard the term "cost per square foot". This is one of the most useful ways to estimate the cost of a home's construction before any plans are drawn. It provides a ballpark estimate for answering the question: what can I afford for the size of home I need?

The equation is simple. An example:

• Expected square footage of the home: 2,500
• Cost per square foot: $300
• Then 2,500 X 300 = expected cost of $750,000

When you get serious about building, you'll hear estimates from builders and others that reflect their "going rate" for construction. That's the $300 per square foot example above. You may ask: where does this number originate?

The number often comes from looking back at a completed project and calculating the cost per square foot that was required to build it. This number is then used as an estimate for future projects.

This can create confusion because every project is different and the cost number inevitably reflects, inflation, changes in the local market, and more.

What You Can Do

If you're hearing cost per square foot numbers that seem too high, there are a few things you can do:

• Talk to a number of builders and architects about the cost per square foot they are experiencing. Ask them what is driving the costs and how to control for it.
• Consider the difference between wants and needs. You may want five bedrooms and a pool, but you may need (and be happy with) three bedrooms and a garden.
• Reduce complexity. Complex and difficult-to-build designs cost more. This could include choosing curved walls, unconventional shapes, intricate trim work, and large spans. The golden rule for budgets: be square.
• Look closely at materials and finishes. A home with the finest materials and finishes can double the cost per square foot compared a home with more conventional finishes. See also: wants vs. needs.

Keep Learning

I explain these ideas more fully in the video below:

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👉 All Issues of Owner Notes​

That's what I have for now. See you next week!

Lee LeFever, Build Livable​

• Build Livable helps homeowners navigate custom home construction. Learn More.
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