Examining the Expenses of Building a High-Value Home in New Mexico
Buying a high-value home in New Mexico is a lot different than if you were to buy all the supplies and build one brick-by-brick. After securing your essentials, such as medical and personal auto insurance, it might be time to consider purchasing a new home. New Mexico is one of the hottest real estate markets in the country, and it is well worth investigating your property options in the area.
There are many affordable options in this particular part of the country. The boom in the housing market has resulted in scores of properties across the price scale, so a dual-income family should have little trouble funding a house to suit their needs.
A High-Value Home in New Mexico: The Details
You have decided to build a high-value home in New Mexico and now must figure out the details. This post aims to provide the answers to your most pertinent questions.
Average Building Cost for a New Mexico Home
What would it cost to build a house rather than buy a high-value home in New Mexico? At present, the average price hovers right around $300,000. It doesn’t include the property’s price, so factor that in if you are shopping around.
Of course, the type of house you are planning to build‒or purchase‒will determine how much you will ultimately have to pay. Expect to pay around $30,000 for a basic one-bedroom unit on the low end of the scale. You may have to shell out several million dollars for a modern smart house with luxury amenities and features.
Other factors that will affect the price of your build include location, labor, and materials. Many experts advise setting aside 15% of the house price for contingencies if you need to cover unexpected costs or pay for surprise upgrades.
Average Cost Per Square Foot
You may want to determine the cost of your new home by assessing the price per square foot. Families with three to four members typically need a 2,000-square-foot home. The table below shows the expenses you could expect to pay for a builder-grade home in New Mexico:
The average price per square foot can go as high as $500. Meanwhile, the average will likely be around $150, while the lowest can amount to $100.
Comparative Prices for New Builds
As mentioned previously, location has much to do with the price you can ultimately expect to pay for your new house. All factors being equal, location will considerably affect labor, materials, and delivery costs. It will also determine the price you will pay for the plot. It is always a good idea to compare bids from as many different builders as possible to get the best price and assurance of quality work.
Even if you are dead-set on building a home in New Mexico, it might be helpful to know the relative costs in other states. Here’s a quick rundown that should be informative to would-be builders and homeowners.
If you lived in New Mexico, you might have to pay an average of $290,940 for a 2,000-square-foot house. It would amount to about $212,500 in North Dakota. Conversely, you might have to pay $405,440 in California.
Prices will fluctuate depending on whether you are building in the city or a rural community. Alternatively, there are other costs to factor in.
Building Cost Estimate
Labor and materials will take up most of your home building budget. Remember that these prices hinge primarily on your community’s supply and demand. As always, compare quotes from as many suppliers as possible to get the best deals.
Building costs can vary. However, some estimations to consider when building a high-value home in New Mexico. The first thing you have to worry about is off-site accommodations. It would likely amount to anywhere between $8,600 to 11,900. Then, you would have to do a water and sewage inspection, which could cost $4,500. You must never forget to execute house plans, which will range anywhere between $500 to $3,500.
Construction management could cost anywhere between $3,000 to $52,000, depending on the workers you hire. Of course, you need building permits, which will likely cost you about $3,000. Excavation costs could see you spend $2,300, and the foundation will cost you another $9,000. Then, your framing could cost you $33,000, while exteriors and roofing could cost about $20,000. Building a house also requires the installation of HVAC, plumbing, and electrical systems, which could run anywhere between $29,000 and $34,000.
People also often forget about insulation, drywall, painting, and flooring costs, which could cost another $30,000.
These are only some expenses you will incur when building a house in New Mexico. Make sure to discuss the project thoroughly with your contractor, so you aren’t caught off-guard by unexpected expenses later on.
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