Price Per Square Foot: The Wrong Question for a New Build
Price Per Square Foot: The Wrong Question for a New Build
Direct answer: For West Michigan buyers building a new home, price per square foot is the wrong question to lead with — it varies so much by builder and finishes that Steve would rather ask what value you get for the money you are putting out.
What price per square foot leaves out
One question Steve gets often: what is the price per square foot of a build? That means taking away the lot cost and asking how much it costs to build a house per square foot — what goes into the foundation, the timber, the roof, and how much it goes up.
The problem is that number varies so much. It depends on whether it is a production builder, a spec builder, or a custom builder. It just depends on their process.
Finishes change everything
More than that, it is about what kind of finishes you want. Refrigerators can be different. Granite can be different. There are so many different things that go into a house, and every one of them moves the per-square-foot number.
Two houses with the same square footage can cost very different amounts to build, because the finishes inside them are not the same house at all.
The question Steve asks instead
So when you call, Steve always asks: what kind of finish level do you want, and what kind of home do you want to build? And where are you in the process?
That is more important than a per-square-foot figure. The main question is: what value can you get for the money you are putting out?
Steve does not like price per square foot, and now you know why — it hides the two things that actually set the price: the builder's process and the finishes you choose.
Key takeaways
Price per square foot means the build cost minus the lot cost: foundation, timber, roof, and everything that goes up.
It varies so much by builder type — production, spec, or custom — because each builder's process is different.
Finishes change the number: refrigerators, granite, and many other selections all move it.
Steve's questions instead: what finish level do you want, what kind of home do you want to build, and where are you in the process?
The main question is what value you get for the money you are putting out.
FAQ
What is the price per square foot of a new build?
It is the build cost without the lot cost — foundation, timber, roof, and everything that goes up — but it varies so much by builder and finishes that it is not a reliable comparison on its own.
Why does it vary so much?
Because it depends on the builder's process — production, spec, or custom — and on finish level: refrigerators, granite, and many other selections all change it.
What should I ask instead?
What finish level you want, what kind of home you want to build, and where you are in the process — because the real question is what value you get for the money you are putting out.
West Michigan New Construction FAQ Series
Financing a New Construction Home
Can You Build Some Yourself?
What Is a Semi-Custom Builder?
What Kind of Builder Are You Looking For?
What Is a Production Builder?
Finding Land
How to Interview a Builder
How Long Does It Take to Build a House?
Price Per Square Foot — you are here
Custom Builder
Watch me explain it
Here is an older video of me explaining the process. It might be older, but the info still rings true.
Watch on YouTube: https://www.youtube.com/watch?v=4dPvP7etaS8
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Author: Steve Volkers, Associate Broker, Steve Volkers Group at Five Star Real Estate, Grand Rapids, MI — phone 616-717-2179, stevevolkersgroup.com
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