Every construction project comes with a unique set of variables and it is important to have a correct estimate of how much the project will cost and the amount of time it will take for completion. A high demand exists in the real estate market since buyers are faced with prolonged search periods, bidding wars and escalating real estate prices. The process of estimating the cost and duration of a new home is generally complex since there are many factors that should be considered before beginning the project. In this article, we will be looking at factors that contribute to the cost and length of new home construction.
Availability of Building Materials
The cost of construction will be low if the building materials are within easy reach of the site. However, you are likely to spend more money if the building materials are being outsourced at a far distance from the construction site. The construction material cost is also an important factor when estimating the overall cost of the project. It is comprised of specific cost of materials, shipping charges, and any applicable taxes. If the building materials are expensive to buy, the overall cost will be higher and you may experience delays if the actual price exceeds your budget.
Condition of the Site
The cost of constructing a new home can increase or decrease based on the condition of the construction site. Some of the conditions that will influence cost include poor soil conditions, conflicting utilities, wetlands, buried storage tanks, and overhead lines. You might also encounter the possibility of eviction if the construction site is home to endangered species, stream or river crossing and archeological site. Using heavy machinery and equipment to dig out stones and wide trenches when building the foundation translates to high costs and duration of completion.
Cost of Labor
The amount of money you need to pay the contracting company or workers may vary depending on the type of work to be done, the structure of the building, and skill level of the laborers. Labor costs tend to be high in urban areas than rural areas because of high demand and competitive pricing in the market. It is important to consider the probable variation in wage rates if the project will commence after several months of estimating the total project cost.
A home that is located in the urban areas or places close to the road tends to be priced at a higher value compared to homes in rural areas or the outskirts. Property location usually stems down to some key factors that impact your current lifestyle. Proximity to local schools and employment opportunities are some of the topmost priorities for most employment-age buyers. Other social amenities such as shopping centers and recreational centers are highly valued by most younger buyers. All these factors play a significant role in the overall price of a new home as it has a positive impact on the life of a homebuyer.
The time taken by the contractor to complete their job has a significant impact on the cost estimates of the new home construction. Labor costs tend to be high when they experience unexpected delays such as changes in weather condition or shortage in supply of building materials. All these situations are more likely to spark up indirect costs that contribute to the cost and length of the new home construction.
Choice of Architect
Professional architects are able to come up with incredible structures that fulfill the dreams and wishes of a homeowner. However, they also have the task of ensuring every part of the building is constructed according to their specifications and plans. Reliable and experienced architects do not cut corners in an attempt to lower the costs of construction because all they care about is delivering their best quality. Hiring a reputable professional architect means that you will have to splurge more money since they follow the construction process meticulously to ensure everything is done perfectly.
The overall pricing of a new home construction is deeply cyclical and revolves around other factors that are beyond your control. Before you start your project, it is important to have a solid plan based on your presumed budget and the incredible work of a professional architect. Lastly, never compromise on the quality of your building materials, as this can have a negative impact on the value of your property and its durability.