How to find Construction & Renovation Costs

What will new construction cost you?

When you are going to build a new house, a cost calculation in advance is a guide for many people about what awaits them. There are many ways to calculate the approximate cost of a home. This is often done in square meter (m2) prices or cubic meter (m3) prices.

 

Pitfalls

What is important, you should realize that when it seems too good to be true, it is often. If the offered m2 or m3 price is many times cheaper than that of the competitor, there is a good chance that you will have to pay much more in other areas, such as additional work or finishing.

Every construction company wants and has to earn money by building a house. Every decision you make has a cost. This is not bad at all. However, it is annoying when you receive the final offer for the construction, also known as the contractor budget, and it no longer fits within your financial picture. If this is the case, you will have to change the construction plans and save money thoroughly.

The costs start in the ground

If you are going to build new, you will have to buy the land first. This is often a substantial part of the total budget. The final price is determined by the municipality that issues the lots and can therefore vary greatly per location. After the land costs come the construction costs. This includes all the costs necessary to actually build the house. Think of the ground and excavation work, the structural work, finishing, finishing, installation work and plumbing. You have great influence on this. The greater the wishes and the more luxurious the finish, the higher the costs will be.

The last split of costs is all additional costs, the costs that are not yet mentioned above. Think of notary fees, applying for a building permit, but also involving an architect. In addition, you also have to pay to be connected to, for example, the sewer. It is also wise to reserve a jar for unforeseen costs. In total, when building a new house, between 8 and 15% of the total amount is needed for the additional costs.

Prices per part

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Differences to calculate the price

You can choose to have the costs calculated exactly in advance. Another option is to estimate the costs first. Which one best suits your situation depends very much on the step in the construction process you are in. The closer you are to the construction phase, the more specified and more precise the costs. See also the diagram below:

Costs per m2 and m3 per segment

As can also be seen above, there are a number of phases in which the prices still have to be interpreted with some margin. A quick calculation example: if you have a house with a budget of $300,000 calculated in the first phase, the final amount will be between 255,000 and 345,000 dollars. Calculating the price in this way is therefore not recommended. The table below is clearer and more precise. Compare the finish level with that of the surface and come up with a more realistic estimate.

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