What is Your Price Per Square Foot?

Pricing by the square foot of a new home can be very misleading.  It could be compared to purchasing a car by the pound:  A Farrari vs. Honda 2000.  Both are sports cars and their weight is similar.  Yet, the cost per pound would be tremendously different. 

The same is true when designing and building a new custom home. Each home has different conditions:  the site and/or the amenities.  These items include fixed costs.

Fixed costs are features such as fireplaces, appliances, cabinets, light fixtures, baths, site conditions, etc. These would also be considered your interior amenities.

Examples of site conditions include:

    Utility runs – from street service to home
    Trees – more or less, large or small
    Elevation
    Length of Drive
    Location – far out in the country vs. in town

Most homes in the same price range will have the same quantity of these items.  There is usually only one kitchen per home and therefore a similar number of appliances and cabinets.  Many homes have 2 baths even though they may have 3 or 4 bedrooms.  Therefore, the cost is the same for those baths even though the square footage of the 4 bedroom home is probably more.

50% to 65% of the cost of a home is made up of fixed costs.   If this is spread over fewer square feet, obviously the cost per square foot rises. For example:  If those costs are $200,000 notice the difference in price per square foot

These two homes could be next door in the same subdivision, but yet the smaller home’s cost per square foot of living area is $9.53 higher. 

Also, if living area only is used, the cost of porches and garages is included in the per square foot cost.  The cost per square foot of this area is substantial.  As the size of garages and porches increase the amount per square foot increases even though living area is the same.  For example:  a home may have a front porch and rear porch where the home next door has only a rear porch.  In this case the cost of the front porch area in the first home will be spread over the same square footage as the home next door without a front porch. 

The cost per square foot varies according to the incremental size of the “All Other” areas.  Assuming that an additional porch in the front in the example above costs $10,000:

Again, for example, the subject home’s cost is around $3 more per square foot than the home next door without a front porch.

We are not suggesting that we should not build porches.  Today’s relaxed lifestyle lends itself to more use of the porches and other areas.  Therefore, we are suggesting that pricing a home per square foot does not always give you the true picture.  Each individual has his own way of expressing himself in his home thru the use of amenities and space. 

At Hearthstone Homes by Ron Lee and Ron Lee Homes we use a great deal of custom amenities in each home.  Therefore, there are times when our price may seem a bit higher than our competition.  We pride ourselves on creating a home that functions in every way and in every square foot.  Not just one or two splashy extras.

Some of Our Extras You Need to Compare with Other Builders:

A Watchful Eye on Construction

Higher Quality Lumber

Top-Notch Bracing

Tight Envelope – Insulation, Sealing, Mech. Equip

Secluded Bedrooms Without Wasted Space

30” Ovens

Upgraded Media Wiring

We like to ask these 3 questions in order to understand where you need to be and how we can help you create your new home:

1.  How much would you like to spend?
2.  How much could you spend if you pulled out all stops?
3.  What would you be willing to spend to get most of the amenities and finishes you want in your new home?

We encourage you to consider this information when you are ready to buy or design a new custom home in the St. Tammany Parish area.  For More Information, Contact Us Directly at 985-626-7619 or e-mail info@ronleehomes.com.