Building your home

Building or Buying a Home in Georgia

Deciding between building a new home and buying an existing one is a significant choice that comes with its own set of considerations. In Georgia, the average cost of building a house ranges from $100,000 to $400,000, depending on various factors. This includes the type of property, construction area, and customizations. However, it’s essential to remember that building a home is not only a financial investment but also a time-consuming process, with homeowners typically spending 9 to 12 months on construction.

Average Cost Breakdown

The average cost to build a house in Georgia is approximately $136 per square foot, excluding additional expenses such as land costs, permit fees, and excavations. The state’s average home building cost is $273,860, with the minimum for an 800 sq. ft. home at $108,800, and the maximum for a 5,000 sq. ft. home at $680,000.

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Cost per Square Foot

For a more detailed breakdown, consider the following average costs per square foot for varying home sizes:

  • 1,000 sq. ft.: $136,000
  • 1,500 sq. ft.: $204,000
  • 2,000 sq. ft.: $272,000
  • 2,500 sq. ft.: $340,000
  • 3,000 sq. ft.: $408,000
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Key Expenses

  1. Material Costs:
    • Building materials make up approximately 50% of the overall building costs, totaling around $50 per square foot.
    • It’s worth noting that material costs have seen a 5% to 10% increase in 2022 due to high demand and longer delivery timelines.
  2. Contractor Charges:
    • Hiring a contractor is essential for overseeing the construction process, with charges ranging from 10% to 20% of the total construction value.
  3. Electrical Costs:
    • New construction electrical costs average between $7,500 and $12,500, covering both rough-in and finishing work.
  4. Roof Installation Costs:
    • Roofing costs vary based on material choice, roof slope, and house size. For instance, asphalt shingle roofs range from $148.09 to $240.64 per 100 sq. ft.
  5. Plumbing Costs:
    • Plumbing installation costs, including fixtures, average around $4,080 nationally or $4.50 per sq. ft.
  6. HVAC Installation Costs:
    • Installing a new HVAC system can range from $1,500 to $12,500, depending on various factors.

Additional Costs

  1. Land Costs:
    • The average land purchase cost in Georgia is approximately $17,200 per acre, not including preparation expenses.
  2. Permit Costs:
    • Building permits are necessary and can range from $1,000 to $2,000, with additional fees for HVAC, plumbing, and electrical permits.
  3. Home Interiors:
    • Budget at least $20,000 for interior furnishings in a 2,500 sq. ft. home.
  4. Home Interior Designer Costs:
    • Consider allocating around $5,400 for an interior designer, depending on your specific requirements.
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Financing Options

If you require financial assistance, several options are available, including:

  • Home Construction Loan: This type of loan covers both land purchase and construction costs. It can be converted to a conventional mortgage after construction.
  • Construction-only Loan: This loan is specifically for financing the construction and does not cover land purchase.
  • Personal Loan: Use a personal loan to finance specific aspects of construction that may not have been initially budgeted for.
  • Home Equity Loan: If you already own a property, you can use the equity to finance the construction of your new home.

Conclusion

Ultimately, the decision to build or buy a home in Georgia depends on various factors, including your budget, timeline, and personal preferences. Building a home offers customization but requires careful planning and time. On the other hand, buying an existing home may be more cost-effective in some cases. Weighing the pros and cons will help you make an informed choice that aligns with your goals and circumstances.

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