How Much Does It Cost To Build Your Own House?

There are many people who dream about being able to build their own house from scratch one day. But setting aside a budget for that purpose can be difficult. How much should one expect to spend on building their own house?

The total estimate of building a house with 2,561 square feet of floor area comes out to be around $642,241. This includes everything from laying down the foundation, the interior finishes, and the miscellaneous costs.

Read below for a detailed breakdown of the costs involved in building your own house.

How Much Does It Cost to Build Your Own House?

The cost of building a house for you will vary depending on a number of factors, like the size of the home, its location, the amount of labor and materials required, and the current trends in the housing market. With so many variables at play, it’s tough to provide a universally accurate estimate for the price of a new home. But our estimate comes out to be around $642,241.

Costs Outside Construction

The entire construction cost for a house with a floor area of 2,561 square feet is $392,241. Other costs, which come out to be around $250,000+, cover things like the land price, additional costs, financing fees, sales commissions, and the builder’s profit.

The following is a breakdown of some of the other costs that are unrelated to the actual construction:

Sold Lot Value

A finished lot, as opposed to raw terrain, already has the necessary infrastructure in place, such as water, electricity, and sewage lines, ready for you to build your home. A piece of undeveloped land may be cheaper to purchase, but it will still hurt your wallet if you pay to have utilities connected.

Estimate: $114,600

General and Administrative Costs

The construction firm’s administrative costs, legal fees, and personnel costs, including benefits and insurance, are all included. This comes out to be about 5% of the house price.

Estimate: $33,000


To obtain a mortgage, you will need to pay various charges, including closing costs and other finance costs, unless you plan to pay cash for your home. This is typically around 2% of the buying price of the home.

Estimate: $12,200

Gross Profit/Sales Commission

If you hire a real estate agent to sell you a lot, you’ll still owe them a sales commission whether or not you build the house yourself. Moreover, contractors expect a profit, often around 10% of the home’s selling price.

Estimate: $88,400

Costs Related to Construction

Now, let’s take a look at the construction costs and the percentage of the overall budget that they account for.

Site Work

The term “site work” refers to a variety of tasks, including acquiring the necessary building licenses, passing water and sewer inspections, and architectural and engineering work. Site work is required before any construction can begin.

The first step is to hire an architect or draftsperson to create the blueprints for your structure. Once that is done, you’ll need to pay for any necessary permissions and inspections before your builder can begin. 

Estimate: $29,200 

Percentage: 7.4%


This covers the pouring of concrete and the building of retaining walls in addition to the excavation work. Houses that have basements often cost more than those without because they necessitate additional work (digging) and materials (concrete).

Estimate: $43,100 

Percentage: 11%


By “framing,” we refer to the process of constructing a building’s skeleton out of lumber and the labor that does this work. The amount of wood required to construct a typical home can easily fill a truck. During the framing stage, you can see the first signs of your home taking shape.

Estimate: $80,300 

Percentage: 20.5%

Exterior Finishes

This covers everything that may be found on the exterior of the house: roofing, siding, windows, doors, and garage doors are all examples of exterior work.

Estimate: $46,100 

Percentage: 11.8%

Systems Installation

The cost of this one is fairly high. Plumbing, electricity, and heating, ventilation, and air conditioning (HVAC) are all major systems. It takes a group of skilled craftsmen to bring your house to life by installing all of the pipes, cables, and ducts that are necessary.

There isn’t much room for cost cutting here unless you can do without things like indoor plumbing. These expenses do not take into account the actual sinks, toilets, and lighting that are connected to the plumbing and electrical systems of the home. These items are included in the overall cost of the interior finishing package.

Estimate: $70,100

Percentage: 17.9%

Interior Finishes

Get ready to pull out some serious cash, because you’re going to need it for this one. However, the interior finishes you choose are what actually define the character of your home. This covers things like drywall, trim, painting, lights, cupboards, kitchen countertops, appliances, floors, and plumbing fixtures. 

Estimate: $94,300 

Percentage: 24%

Finishing Touches

Your home’s final touches will give it a more attractive exterior. Landscaping plays a significant role in this. Driveways and other outside additions (such as decks, patios, and porches) may incur additional expenses. The price also includes $2,300 for cleanup.

Estimate: $23,100 

Percentage: 5.9%

Other Unexpected Costs

Building a house involves a lot of tiny costs that crop up here and there, and they can add up to a few thousand dollars on average. Be sure to save a little bit of money aside just in case.

Estimate: $6,100 

Percentage: 1.5%

Buying vs. Constructing a House

Trying to decide whether to buy an existing house or build one from scratch? There are a lot of things to think about.

Buying a house already on the market is often considerably easier and faster than building a new one from the ground up. Construction of a brand-new house may take several months, but the typical home purchase may be finalized in just one or two. 

Additionally, home construction typically involves a great deal of stress and numerous choices in the decision-making process. Buying a home could be a less stressful alternative if you want to save yourself months of hassle. And because you won’t have to worry about securing a construction loan, it may be easier for you to get approved for a mortgage.

Lastly, and perhaps most importantly, when you build your own house, you can customize it to your exact specifications, while when you buy one, you have to settle for less. 


There are a lot of things to think about when deciding to build your own house. Luckily, the costs involved in the process will be the last on your list, thanks to our detailed breakdown of the costs.

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