Building your own home is an increasingly popular route to homeownership and for good reason. Not only does building your own home provide you with a more personalized homeownership role, but it also gives you the flexibility to design a home according to your dream specifications and preferences.
However, before you begin building, it’s important that you have a detailed understanding of the various costs to build a home in Ohio. To get you started, we’ll walk you through the most important costs and considerations when building a home in Ohio.
Costs of Building a Home in Ohio
The more detailed your home building budget is, the less likely you are to encounter any unexpected construction costs. To ensure that your budget is as exhaustive as possible, we’ve listed three key home building costs below.
Price of Land
As of May 2019, the average cost of land in Ohio is $32,077 per acre. But remember, the average price of land is only one piece of the puzzle. In reality, the cost to purchase a land lot in Ohio will largely depend on acreage, location, and construction suitability.
Materials and Contractors
According to the latest report from the National Association of Home Builders (NAHB), the average cost to build a home in Ohio is $104.95 per square foot of construction. However, just like the average price of land, average building costs should only be used as a guideline for your materials and contractors budget.
After meeting with your building contractor, you’ll be quoted a more detailed estimate of the cost per square foot of construction. This quote typically factors in estimated labor costs, foundation and home structure complexity, interior finishing requirements, and quality of exterior materials. Premium home features, whether it’s a custom countertop or first-class HVAC system, typically add between $30 per square foot and $80 per square foot in additional construction costs.
Ohio home builders will need to purchase at least three building permits before beginning construction: an occupancy permit, a utility permit, and a septic permit. Although the specific cost will depend on county regulations, building permits typically cost between $500 and $2,000. If your land lot hasn’t been built on before, you’ll also need to pay for site inspection and utility connection fees.
How to Save Money When Building Your Own Home?
Building your own home is usually one of the biggest — if not the biggest —investments in time and money you’ll ever make. If you’re looking for ways to save money, here are our top three tips to reduce and cut back on home building costs.
Stick to Your Budget
It might sound obvious but keeping your home construction within budget is the most effective way to save money when building an Ohio home. Building costs add up fast and it’s easy to go over budget if you start adding additional outdoor structures or framing extensions.
Builder Closing Cost Incentives
If you are taking out a loan to build your home, it’s worth checking with your builder if they offer any closing cost incentives. Financing your home construction through your builder’s preferred lender can save you thousands of dollars on mortgage origination fees, construction insurance, and building record fees.
Don’t Forget Your Home’s Resale Value
Understand that your home’s potential resale value isn’t going to have an immediate impact on your home building cost savings. However, in the long run, an awareness of resale factors can both save you money and ensure that you’re getting the best return on your property investment. We’ve listed three key resale variables to keep in mind throughout the home building process.
Enhancing your curb appeal is one of the most common ways to increase your home value. If you want to get the most out of curb appeal improvements, get in touch with a professional landscaper to help coordinate and integrate your home design with the surrounding yard space.
Energy Efficient Design
The uptick in environmentally conscious buyers has increased the resale value of energy efficient homes. Price-conscious home buyers also value energy-efficient homes due to the reduced cost of utilities. If you’re trying to decide how to make your home more energy efficient, consider implementing attic insulation and/or a solar hot water system.
Open Floor Plan
Open floor plans are still a big selling point amongst Ohio home buyers. If you want to capitalize on this high-value trend, we recommend that you keep your home design accessible and compatible with room extensions or renovations. If possible, try to maximize natural light throughout the home interior.
Want to Know More? Contact a Local Real Estate Agent!
If you’re still confused or want to know more about the home building process, it might be time to get in touch with an experienced, Ohio-based buyer’s agent. Not only are real estate agents an excellent resource when it comes to deciding where and how to build your home, local agents may also have access to exclusive cost savings opportunities.
To connect with a top-rated agent in your local area, get in touch with Clever! Agents in the Clever Partner Network offer full-service support and guidance through every step of the buying process, from researching and making offers on land lots to contacting and negotiating with reliable building companies.