What size house can I build on my lot?

Surprises may be fun on your birthday but they are not fun when it comes to home building. Understanding exactualy what you will get for your money before you build your home is critical. The term “cost per square foot” is often misunderstood and misused. The main issue with this misunderstanding is the vast difference in the quality of construction materials, the quality and craftsmanship of the labor used to install those materials and the overall quality of the finished product. For a quick example. Let’s say you want to buy a car. One guy is willing to sell you a car for $1,000 and another guy is willing to sell you a car for $2,000. Whats the difference? Both work and will get you from A to B. Would you jump at the $1,000 car without first understanding whats under the hood? I found an interesting site online that goes over this idea pretty well - Building Costs. Now, on to our question…

Question:) “I am looking at a home site that is “X” acres. Is it possible to build a house that is “YYYY” square feet for $”ZZZZ” on my land?

Answer:)  This question is a good one and this is defiantly something to have figured out prior to buying that lot. 

In general, as long as the local area/town/county/community rules (such as the HOA or ARB) and regulations allow the building of the square foot size of a home on that lot you should be able to do this without an issue. 

As far as the price per square foot:

What I would highly suggest you do is sit down with the builder/land owner in question before you buy the lot. If you already have a floor plan ready bring that along. If you do not have a final floor plan then at least bring along your notes, sketches and so on. What you’ll want to find out is this…

a) Take into consideration what your wants and needs are on such items as the trim, flooring, appliances and so on (aka finish), and be specific with the builder on exactly what you mean by that (by granite do you mean 1 inch think or 2 inch think, finished edges, standard variety or a special color and so on), what does he feel would be the cost per foot on a home like you describe? Most builders will be able to give you a good ball park idea on this without much trouble. 

b) Cost per foot is a good number to know and understand however it can be misleading at the same time. There is a very large difference in the quality of building materials from the low cost end to the higher cost end. For example, all windows are not created equal. Poor quality windows can lead to higher power costs, possible leaks, poor operation and so on. A less expensive window may get you into the home you want now but you may pay for it later. Find out what sort of material the builder typically uses on his homes and do some research.

c) Even very small sounding items can mean big price differences. For example changing from a standard 30 year asphalt shingle roof to a standing seam style metal roof could be an additional $50,000 to $100,000 on a “normal” sized home. It’s still a roof, and it’s covering the same amount of space, but the price can be drastically different. 

One last thing on this question, and I’m not sure if it applies to your situation or not. I’m assuming that this lot is in a community or subdivision of some sort. I’m also assuming that at some point down the road you may want to sell this home. It’s almost always a good idea to not be the most expensive home in a community and to not be the largest home in a community. Speaking in general terms the largest and most expensive home on the block can be the most difficult to sell. By “most expensive” I mean most expensive per square foot. Many home buyers will use this number in their decision making process, even if at times it hold less meaning than they realize. 

The biggest point I can make here is find out the answers to all of your questions before you make any sort of move, like buying a lot. Be specific when asking those questions as well. Expectations and perspectives can be very, very different between builder and home owner when building a home. Open communication with your builder, real estate agent and attorney is key to making this a fun and exciting experience.