Why Do Different Builders Have Different Costs Per Square Foot?
The cost per square foot is a rough “ball-park” figure used to calculate approximate building costs. Each builder bases the cost on actual materials and fixtures to be used. Obviously if one builder uses only hardwood flooring and another always uses economy grade carpet the “cost per square foot” will differ significantly. Another factor that people don’t realize is what is included in the cost per square foot. You have to be careful when you get low numbers as these builders may not be including things or using equipment that is cheap to buy but very expensive to maintain and operate.
Some builders allow unrealistic costs for light fixtures, flooring, counter tops, and appliances. The best thing to do: check out the cost of the light fixtures, floorings, counter tops, and appliances you’d like in your new home. (There shouldn’t be too many other allowances.) Then compare these prices to the allowances your builder is giving you for these items and you’ll know if the contractor you’re considering is giving you a realistic square foot bid.
The cost per square foot is a rough “ball-park” figure used to calculate approximate building costs. Each builder bases the cost on actual materials and fixtures to be used. Obviously if one builder uses only hardwood flooring and another always uses economy grade carpet the “cost per square foot” will differ significantly.
