Building or Buying a Home in Pittsburgh

Deciding between building a new home and buying an existing one in Pittsburgh can be a significant decision. Both options have their merits, but understanding the costs and factors involved is crucial. In this guide, we’ll break down the expenses, considerations, and financing options to help you make an informed choice.

Section 1: Average Home Building Costs in Pittsburgh

Building a home in Pittsburgh comes with its own set of expenses. On average, it costs around $178 per square foot, totaling between $250,000 and $480,000. However, it’s essential to note that this estimate excludes additional costs like land expenses, permit fees, and excavations.

Section 2: The Breakdown of Building Costs

1. Framing Lumber: The highest material cost for building a 2,000 sq. ft. home is approximately $33,000.
2. Contractor Charges: Typically range from 10% to 20% of the total construction value, covering various professionals involved in the process.
3. Electrical Costs: Vary between $7,500 and $12,500, covering rough-in and finishing work.
4. Roof Installation Costs: Range from $2,900 to $32,900 based on roofing material choice.
5. Plumbing Costs: Average around $12,000, covering fixtures and pipe installations.
6. HVAC Installation Costs: Vary widely based on system type, size, and additional features, averaging around $12,500.

Section 3: Soft Costs and Land Expenses

1. Land Cost: Expect to spend around $35,000 per acre for land purchase and preparation.
2. Building Permit Costs: Range from $5,000 and up, depending on construction type, area, and project scope.
3. Home Interiors: Budget at least $20,000 for furnishings, electronics, and other essentials.
4. Home Interior Designer Costs: Plan for an average of $5,400 for professional interior design services.

Section 4: Financing Your Home Building Project

Explore various financing options, including:

1. Construction-to-Permanent Loan: Covers both land purchase and construction costs, converting to a conventional mortgage after completion.
2. Construction-only Loan: Specifically for financing the building process, not land purchase.
3. Personal Loan: Useful for covering specific construction expenses that may have been overlooked.
4. Home Equity Loan: Applicable for homeowners looking to use their existing property’s equity to finance the new construction.

Section 5: Build or Buy? Making the Decision

If you own land in a desirable location, building a house can be a rewarding endeavor. Be prepared to invest 9 to 12 months in planning and construction. However, if you don’t own land, it might be more efficient to explore turnkey homes for a quicker move-in process.

Conclusion:

Ultimately, whether to build or buy in Pittsburgh depends on your unique circumstances, budget, and preferences. Understanding the costs and considerations involved is crucial in making this significant decision. Whichever path you choose, rest assured that you’re on your way to creating your dream home in the Steel City.