Building vs Buying: The Ultimate Guide to Homeownership in Vermont

When it comes to homeownership in the picturesque state of Vermont, the decision between building a custom dream home or purchasing an existing property can be a tough one. Both options have their merits, but they come with their own sets of considerations, costs, and timelines. In this comprehensive guide, we’ll break down the average costs, key factors, and financing options for building a house in Vermont. We’ll also explore whether building is truly the right choice for you.

Average Cost of Building a House in Vermont

The average cost per square foot to build a house in Vermont is approximately $154. This figure, however, does not include additional expenses such as land costs, permit fees, excavations, and other related costs. The overall average building cost in the Green Mountain State ranges between $300,000 to $500,000. Here’s a breakdown by square footage:

• 1,000 sq. ft.: $154,000
• 1,500 sq. ft.: $231,000
• 2,000 sq. ft.: $308,000
• 2,500 sq. ft.: $385,000
• 3,000 sq. ft.: $462,000

Key Considerations for Building a House

1. Material Costs: Building materials account for approximately 50% of the overall building expenses. Costs for materials like flooring, drywall, siding, and lumber range from $2 to $12 per square foot.
2. Contractor Charges: Hiring a contractor is crucial for overseeing the construction process. They can hire various professionals, such as electricians, plumbers, and carpenters. Contractor fees typically range from 10% to 20% of the total construction value.
3. Electrical Costs: Expect to spend between $7,500 to $12,500 for electrical work, which includes both rough-in and finishing.
4. Roof Installation: Roofing costs vary based on materials, ranging from $192.80 to $2,169.00 per 100 square feet.
5. Plumbing Costs: Installing plumbing fixtures costs around $4.50 per square foot, or an average of $4,080.
6. HVAC Installation: Homeowners pay between $1,500 to $12,500 for installing a new HVAC system, depending on factors like size and type.

Land and Permit Costs

1. Land Purchase: The average price per acre in Vermont is $7,439, with additional costs for land preparation ranging from $1,500 to $3,000.
2. Permit Costs: Building permits, essential for construction, vary by county. These can include building, HVAC, plumbing, and electrical permits, ranging from $10 to $2,000.

Financing Your Home Construction

If financing your dream home is a concern, consider the following options:

1. Construction-to-Permanent Loan: This covers both land purchase and construction costs, converting to a conventional mortgage after completion.
2. Construction-only Loan: For financing construction only, not land purchase. The full amount is due upon completion.
3. Personal Loan: Use a personal loan for specific construction costs, like landscaping.
4. Home Equity Loan: For existing homeowners looking to finance new construction based on their existing property’s equity.

Conclusion: Build or Buy?

Building a home in Vermont offers the opportunity for a custom-designed, brand-new living space. However, it’s essential to factor in the time, costs, and considerations involved. Purchasing an existing home can be more cost-effective, but may not offer the same level of personalization.