Building a new home can be a very rewarding experience. You can create a home catered to you with everything you need and could want. However, one of the drawbacks is definitely the cost. New home construction costs can really add up, and being unprepared for a price tag can leave you disappointed, and a builder out of a sale. Here’s a look at what building a new home could cost you, and how to get the most out of your money.
NuStar is Utah’s premier home builder. We have been around for over 10 years, meaning that we have the experience and expertise to build you the home of your dreams. We strive to provide you with a quality home that is build right, the first time. We don’t take shortcuts, and have no limits for what we can do for you.
Home Values in Utah
Utah’s housing market is on the rise, meaning great things for homeowners. Values are likely to just keep increasing, making it a great time to buy in Utah. Utah is one of the fastest growing states in the country. As the state grows, sales of homes and cost will increase until the demand has been meant. According to Zillow, the median listing price of a Utah home is $334,900 as of July 2017. That is up almost $100,000 up from 2014.
Unfortunately for someone looking for a home, the demand for Utah homes will likely not subside. Since trends are looking up, it is best to buy a home now, so it can accrue value as the demand for homes continues to increase with the increasing population.
Building a Home
The cost to build a home in the state largely depends on the land you choose to build on, and the size of the home that you want to build. Obviously, a large home will cost more than a smaller home with less square footage.
Make sure that you include the price of the lot when calculating a cost. Land in Utah can vary from $50,000 to over a million dollars. Again, the size of the lot greatly determines cost, along with the location. Around Salt Lake City, lots will be small, and cost more than a similar sized lot in say, Tooele or less developed areas.
In Utah, you can expect to dish out about $120 per square foot of house that you intend to build. Using this formula, a 2,000-square foot home will cost you 240,000 to build. Building costs can be pretty standard, but depending on the upgrades that you choose, housing costs can skyrocket. Adding granite, state of the art appliances, hardwood floors, crown molding, and maybe even an extra sink in the garage can really add up. Take time to decide what upgrades you want, and calculate them into your budget before you build. An extravagant house is going to cost you more. Work with a builder that is going to give you a fair price for these upgrades in your market.
One thing that you might not be able to guess, is that it is not likely that a builder will budge much on a list price in a developing neighborhood. Instead, you will get a lot further by negotiating upgrades. Negotiating with upgrades allows a builder to keep a steady listing price for future buyers of houses in the development. If they lower the price for you, then they will drop the value of homes in the neighborhood, costing them potentially hundreds of thousands of dollars.
Before you make your final deal, make sure you:
- Research the value of your future home. How does it stack up against similar homes in the area and in the neighborhood?
- Research the builder. Are you getting the best price for the home you want built?
- Hire a representative to provide expertise on properties and values in the area, and a lawyer to read and explain the legal language to you.
If anything sounds questionable throughout the process, make sure that you clear things up. A mistake or a misunderstanding could cost you thousands of dollars. You are beginning a potentially decades long process to buy your home, and you want to make sure that you are confident in your purchase.
NuStar is ready and waiting to build your dream home. We will help you along, every step of the way and make sure your house gets built right, the first time. Give us a call today at (801)523-8499 or contact us here. We’re looking forward to building with you.