Palazzo Estates

Building Expense

The Real Costs of Building

Years, months, weeks, days, even minutes ago, you began dreaming about building a home. A home that not only facilitates your family’s desires, but reflects your personal tastes. After all, it is one of the largest investments you will make for your family. Unfortunately, custom home building is expensive, so it is important to determine how luxurious your tastes are.

expense

Depending upon size of your home, number of bedrooms, bathrooms, options and lot preparation, you should plan on spending between $300 to $1000 dollars per square foot of your living space, not including your lot premium.

Our fee is simple. We charge $100,000 down and once building begins, we charge 15% over the costs for each phase of the construction process. After each phase is finished and inspected by the city and/or the bank, they will release the funds and we pay our subcontractors. Also, It is important to keep in mind that you are also responsible for approximately 9% sales tax for the state and county. And it is wise to add into the budget an additional 10-15% of total costs for contingencies. You will be able to purchase all the goods for your house (doors, wood, cabinets, plumbing, tile appliances etc. at our contractor pricing which is roughly 25% under retail.

During the building process, unforeseen changes in design and décor are inevitable. Also it is important to keep in mind that your material costs can vary 5-25% per year, from the time you get loan approval and permits to the time you actually purchase these items. Before you get final loan approval we will ascertain primary bids for you and help you determine how much you will need to finance, at what interest rate, and for how long of a term.

We have multiple banks that offer very flexible constructions loans and even give draws for deposits on materials. Some will even let the home owner accrue the interest during the construction process.