Buying a home is one of the biggest investments most people will ever make, so it’s a serious decision and one that comes with a lot of questions. The team at Singletary Construction can answer those questions for you.
Question: What determines the price of my home?
Answer: Several factors are calculated to determine the price of each new home on the market.
Cost to prepare the site: Before we can put a house on a lot, the area must be graded to accommodate the structure. This process includes clearing any unwanted trees, rocks or other foliage, leveling out or building up the land based on the features of the home such as a basement, testing the density of the soil, planning for drainage, and installing preliminary components for utilities.
Cost of building materials and finishes: One of the most costly components of the home is the foundation involving block, concrete and gravel. Some essentials such as lumber, which is the framework for the entire structure, can fluctuate significantly based on supply and demand. Overlooked details like nails, doorstops and baseboards add to the bottom line. Exterior finishes such as brick or stone versus less costly treatments like vinyl siding can also impact the cost by several thousand dollars.
Location: Each subdivision has its own set of requirements that each home must include intended to preserve the market value of the neighborhood. Some may require a certain percentage of the exterior be brick or that each home have a wrought iron fence.
Market value: Beyond the actual cost to build the structure, any home new or existing is typically priced in accordance with the market value of the comparable homes in that area. Homes in areas of high demand – those that fall in highly desired school districts, for example – will be priced higher simply because more people want to live there.