Building vs. Buying a House in Virginia

Are you considering making Virginia your new home sweet home? Whether you’re drawn to the historical charm of Richmond, the picturesque beauty of Charlottesville, or the urban allure of Arlington, one crucial decision you’ll face is whether to build or buy your dream house.

Building Costs in Virginia

Building a house in Virginia offers the advantage of customization, but it comes with its own set of considerations, including cost and time. Here’s a comprehensive breakdown of what you need to know:

Average Cost per Square Foot

In Virginia, the average cost per square foot to build a house is approximately $155. This figure doesn’t include expenses like land costs, permits, and excavations.

Total Average Building Costs

• Minimum (800 sq. ft.): $124,000
• Maximum (5,000 sq. ft.): $775,000
• Average Range: $262,000 to $390,000
• Average Total: $310,100

Costs by Square Footage

• 1,000 sq. ft.: $155,000
• 1,500 sq. ft.: $232,500
• 2,000 sq. ft.: $310,000
• 2,500 sq. ft.: $387,500
• 3,000 sq. ft.: $465,000

Costs by City/County

• Richmond: $169/sq. ft.
• Charlottesville: $110/sq. ft.
• Arlington: $170/sq. ft.

Costs by Region

• Northern Virginia: $183/sq. ft.

Hard Costs vs. Soft Costs

Hard Costs involve direct expenses in the construction process, such as:

1. Material Cost: Approximately $147,500
2. Contractor Charges: 10% – 20%
3. Electrical Costs: $7,500 – $12,500
4. Roof Installation Costs: $3,400 – $38,800
5. Plumbing Costs: $12,000
6. HVAC Installation Costs: $12,500

Soft Costs are associated costs like permits, design, etc.:

1. Land Cost: $24,000 per Acre
2. Permit Costs: Around $5,000
3. Home Interiors: Budget at least $20,000
4. Interior Designer Costs: Approximately $5,400

Financing Options

If you’re exploring financing options, consider:

1. Home Construction Loan: Choose between a Construction-to-Permanent Loan or a Construction-only Loan.
2. Personal Loan: Use for specific construction expenses.
3. Home Equity Loan: If you already own property, this can help finance the new construction.

Is Building Worth It?

If you own land in your desired location, building allows for customization. However, it’s important to budget 9 to 12 months for planning and construction. If you don’t own land, buying a turnkey home might be a quicker option.

Making the decision to build or buy a house in Virginia is a significant step. Consider your budget, timeline, and personal preferences to make the choice that aligns with your dreams. Happy house hunting!