More house for less money?
When it comes to building a new home, bigger might not only be better, but cheaper too when you work out the math.
Call it simple supply and demand. When people don’t buy houses, the price goes down, and when it comes to building your home from scratch, developers say you can get more bang for your buck, by building a larger home.
“It costs more to build out than it does to build up, because you can consolidate all those flooring and roof costs,” said Jeff Hilton, the vice president at Southern Home Builders.
Every house has fixed costs. You need a kitchen, living room, bathrooms and plumbing. Adding more living space isn’t that expensive once you’ve got these basics, that is, if you build up.
The minute you add width to a home, you’re talking additional roofing, ceilings and flooring which all cost more.
“Inherently, each home has the same components, you’ve got walls, ceilings, roof, flooring, and if you can consolidate any of those components, you can reduce your cost,” Hilton said.
Building up doesn’t have to mean adding a second floor; it could be as simple as finishing a room over the garage.
One developer in Leland said the dollar amount per square foot in a larger home is less, than in a smaller one, but that doesn’t include amenities like hardwood flooring or additional cabinets.
Hilton added, “The buyer needs to be aware when they go shopping for a home by square footage, the price can be dangerous.”
At the end of the day, the price tag on a larger home is more than a small home, but builders simply say based on price per square foot, a bigger home is a better value.
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