How do you know what percentage of your financing to spend on land compared to building your house?

Question

Is there a resource that tells you how much your house will cost to build based on your location and desired square footage?

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Answer 1

That's a pretty subjective Q. It may largely depend on WHERE you purchase land, and what you build on it. I understand very well how real estate has exponentially outgrown our abilities, but assume, that depending on where you purchase land,,, and how much land it is,,, you might find an acre for $25,000 and build a multi million dollar house of it,,, Or oppositely you might find rural land for less per acre and build a $60,000 cabin on it.

An example I personally have experienced is Atlantic Beach Front property and housing. In the early 1980's I purchased a modest ranch style house here in Florida, on the coast. At the time beach front was selling for $50,000 a front foot, plus whatever a builder could charge for a house. In 2006 it could be as high as $500,000 a front foot? Just for land, there?

I suggest a more personal exploration in seeking land, where you wish to settle, and searching contractor info for their varying fees. Certainly if you buy tract housing the prices are pretty much set in concrete (no pun intended) and depend on what they paid for the entire tract, how many homes they can LOAD onto it, and in the end,,,What the market will bear.

Rev. Steven

Answer 2

The simplest way is to call a builder. They should be able to give you a general price range, x dollars per square foot. As for land cost, that varies so wildly, it would be difficult to standardize.
Begin with your total budget, research cost for land in your area, and then begin balancing land cost versus building cost. (and don't forget lawyer fees, development charges, taxes, zoning issues, etc.)