In order to get an accurate estimate for your project Blue Ridge Custom Homes LLC will need to meet with you and interview you to determine how all of these conditions will effect cost. Having said that, here are some general guidelines:
Cost per square foot
Generally, when we speak of cost per square foot, we are talking about finished square footage. However, it is important to consider that unfinished square footage is not free. Generally, with a typical two-story home, an average price per square foot will allow for a deck, reasonable front porch, and 2-car garage. As we use custom finishes like synthetic decking, stamped concrete, larger garages, lots of outdoor living space, screened in porches, etc… additional costs will occur.
Generally, turnkey costs will start at around $90 a square foot. At $125 we are building a custom finish. At $150 a square foot, we have used many of “the best” finishes available (items like theaters, specialty flooring, custom appliances, etc..). In a cost-plus scenario (see cost-plus below) the cost of construction is going to start around $70 per square foot and $100 for a custom house. These costs are for the home only and do not include lot costs.
Shape/style of house
A two-story house will save approximately 10% compared with a ranch that has the exact same square footage. This is because large structural elements such as the footing, foundation, framing, roof, insulation, etc… can be used to cover twice the square footage without increasing their costs. Similar economies can be found with the use of basements and finished attic spaces. These areas are often constructed unfinished and then finished later in order to allow us to meet your budget now but allow you to have more space later without moving to a new house or performing expensive additions.
The more square a house is as opposed to long irregular shapes, the smaller the foundation and roof will be and the more cost-effective the design is. The more “bump-outs” or projections the house has, the more the price per square foot will increase.
Cost-Plus Construction
Cost-plus construction is generally the least expensive way to build a home. In cost-plus construction, we build a home for actual builder cost plus a percentage as our management fee.
The customer will see every invoice and every cost that is used to build their house without any mark up for the builder. The customer gets “contractor” pricing. Then, Blue Ridge Custom Homes charges a 15% fee for overhead and profit.
In a “fixed price” scenario, a builder will add on overhead and profit of around 25%, then another 5% or so for variances from the budget. So, in cost plus, the customer can save 15% or so. These gross profit numbers are common knowledge and can be verified by searching public records over the internet for homebuilders.
The reason that we can cut our profits on cost-plus is that the profit is guaranteed. In a “fixed price” situation, the builder will absorb any variances, price increases, etc…Since the actual gross profit will only be determined after everything is complete, the builder must plan for some worst-case situations in his budget. In cost-plus this uncertainty does not exist. Since the builder has less risk, less profit is also appropriate.
Cost-plus is not for every project and it is not for every customer. We would like to speak with you in further detail concerning this approach. In addition, we can refer you to past cost-plus customers so you can see how well it worked for them.
