If you’re looking into purchasing a new home, you’re likely wondering how much it costs to build a new home. Many clients shy away from building a new home as they’re unsure of the costs and how the payment structures work. Building a home should be an exciting time as you get ready for a new adventure, so we’re here to remove any uncertainty in the home buying process. Here’s everything you need to know about how much it costs to build a home!
In Edmonton, it typically costs between $170 and $200 per square foot for the construction costs of a home. However, these construction costs can vary depending on the upgrades you may choose to add to your home. If you’re building a single-family home in Edmonton, you can expect to pay anywhere from $450,000 to $600,000 for your average home – depending on the size, location, and other factors. The average cost of buying a resale home in Edmonton came to $485,739 in 2023, according to the Realtors Association of Edmonton.
The cost of building a home is very dependent on the individual house. Some of the primary factors that determine the cost of building a home include:
- Where you’re building
- What kind of lot you have (amenity lots, size, etc.)
- Elevation type of your home
- Size of the home
- Finishing upgrades
- Floor Plan changes
- Fees and Permits
- Time of Year
Depending on the community in Edmonton, the cost to build a home can fluctuate greatly. Amenity lots in some communities have cost over $300,000 for the lot, whereas more modest lots can be anywhere from $135,000 to $250,000. If you’re looking to build a home more affordably and you don’t have a specific community in mind, TroiWest can help you find a lot that fits in your budget!
The elevation type you choose can impact the cost of your home, some elevations such as prairie styles cost less to build than a craftsman style, for example. Some primary factors that impact the cost of your home are the size, upgrades, customizations, and specialty materials used. By upgrading your home or choosing to customize certain features, it can greatly increase the cost to build a home. Other factors that impact the cost of your home that can’t really be controlled are the fees and permits (ensuring that your lot is able to be developed legally) which can be time consuming. Although fees and permits won’t cause the cost of your home to fluctuate (they are a set price), it is something to consider as an added cost for building your home.
If you’re looking to build a new home, here are a few tips for saving money and sticking within your budget!
- Use existing designs
- Choose a quick possession
- Reduce upgrades
- Get pre-approved for a mortgage and work with that budget
- Give your builder a budget first
- Avoid scope creep
- Focus on what’s important
One of the best ways to save money on the cost of building a home is to use the existing designs from your home builder. This will allow you to know exactly what kind of home you’re building without needing to pay for additional engineering, custom materials, architectural designs, or approvals.
2. Choose a Quick Possession
Quick Possession homes are a fantastic option to let you save money on building a brand new home. With a quick possession home you get all the benefits of a newly constructed home, but because the home is already built or mostly built, you will know the exact cost of the home and won’t be changing anything or adding on upgrades, making it often more affordable than building a home from scratch.
Upgrades can lead to a more and more expensive home. Although it can be tempting to upgrade your floor plan, finishes, materials, elevation, etc., if you’re looking to save money, the base model version of a new home will still allow you to build something beautiful while still reducing your added costs.
Getting pre-approved for your mortgage allows you to know the right budget to stick within. That way, you’re not getting caught up in a mortgage you won’t be able to comfortably afford, and you can buy a house without spending more than you want to. You can read more about mortgage pre-approval on our blog!
Before even looking at other home designs or upgrade options, ensure your builder knows what kind of budget you’re working with. Getting pre-approved will greatly help with this! This way, your builder will be able to help you come up with a plan on how to stick within your budget while still building the home of your dreams!
Scope creep can happen without us even noticing – that’s why it’s called scope creep, not scope cannonball! It’s easy to find ourselves adding more and more things to a home build to a point where we’re over budget and have no idea how to scale back. Try to be incredibly conscious of your budget and keep track of all expenses to ensure you’re not creeping over. It’s much easier to say no to upgrades at the beginning of a home build than it is to backtrack and make cuts!
When you’re building a home be sure to come up with a list of your top priorities. If you’re most important rooms are the master suite and kitchen, try to avoid any upgrades or extra purchases related to the landscaping or garage, for example. When you know what is most important to you, it’s much easier to build out a reasonable budget.
The age-old question when it comes to real estate. Should you build a new home or purchase a resale home? There are benefits to both options; however, when you consider average upfront costs of building new homes versus buying resale homes, as well as maintenance and renovation costs, we truly believe that building a new home is the best value! Building a new home is a large investment, but you’re guaranteed to have a modern home with new infrastructure and design, plus it will be fully catered to your tastes! Building a new home lets you avoid costly and uncomfortable renovation periods and there is typically much less home maintenance needed for the first several years. Here at TroiWest, we think it’s always better to build a home!
TroiWest has homes for every budget! Whether you’re looking for an affordable, quick possession duplex or a luxury single family home, we can build you an amazing home you’re sure to love! Check out our existing models we have to choose from, or we can even work with you to create a custom floor plan and design! For all your home building needs, contact TroiWest!