19 Jul 2018

When debating whether to buy a home or build a new home in London, Ontario, for most one big question comes to mind: How much is it going to cost to build a new home?

Perhaps you have viewed one too many homes, and have decided building is the way to go. Or perhaps building your own home has always been a dream of yours. Whatever the case may be, it is important to assess the costs and fees associated with building your home before diving in headfirst.

Let us break it down for you. We’ll look at builder lingo and costs that many often don’t consider.

First off, what do builders mean when they say ‘price per square foot’? What does this include?

When builders quote a price for your new home, they will give an estimated cost per square foot. Evidently, a bigger home will cost more. But, what is included in the ‘price per square foot’? This price includes construction costs, building permits, architecture fees, and so on. However, it does not include the cost of the land itself.

The land price is separate and may depend on a variety of factors. The price of your land lot depends on the size, the location, the type of land, the accessibility of it to amenities, and the demand and supply. Take these things into account when choosing your lot of land.

While you can shop around for your land, what should you consider for the rest of the cost or the ‘price per square foot’ cost? Let’s take a look!

  1. Building Permits, Regulation Fees, and More

These fees and costs may differ depending on where you live. Surprisingly, regulations and that can add up to over $80 000 per new home. However, researching them beforehand can save you headaches and financial panic later. Planning helps you budget. Look up what you will need before you build. Look up the average cost. Know what permits you need, what inspections you may have to pay for or have, and what fees tag along with those (don’t forget about insurance, either!). Plan so nothing comes as a surprise. If you are unsure, do your research or discuss these things with your home builder.

  1. The Style and Size of Your Home

As previously mentioned, a bigger home will likely cost more overall. Further, having multiple stories on your house can also add to the price tag. Yet, building upward is actually cheaper than building outward. With multiple stories, you do not need more foundation which means it can lessen your cost. If you want more room, add a second storey. You can also avoid finishing off attics or basement rooms during the initial build to save. If they aren’t spaces you will immediately use, you can wait until you have extra cash again.

Another thing to keep in mind is that any custom or special designs or shapes can, also, up your home building price. On the other hand, if you are building a home, you might want to spend that extra little bit to make it yours. It entirely depends on the person and their budget.

  1. Consider Your Furniture and Appliance Costs

With a new home, comes new furnishings and new appliances. Don’t forget that once your home is built, you will want to decorate it and make it yours. As part of the building process, you get to choose countertops, bath fixtures, and cabinets. Weigh the pros and cons of having that extra bathroom and that extra cost. Again, it comes down to what you and your family may need and what you can work into your budget.

  1. Recurring Costs of a Home

Luckily, a new home often means years before you have to repair anything major. But a home does come with energy, water, and home insurance costs. Prepare and plan for these. Know that eventually, the roof will have to be replaced. With wear and tear and time, other aspects may need fixing. But first, enjoy your new home – one step at a time!

Know your costs. Plan a budget before building. If you have any questions regarding your home build, contact us at Forever Homes. We can help you build your new home in London, Ontario. And would be more than happy to answer any questions you may have.

Looking to build a new home in London, Ontario? Contact us at Forever Homes. We can help get you there.

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Suggested Reading:

7 Ways To Save When Building A Home

Why You Should Make Your New Home Smart

The Best Places to Build A Home In London, Ontario





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YOUR DREAM home worksheet

Use this worksheet when going through the building process to help identify the priorities for your dream home!