Experts on building and renovation (whether commercial or residential) say that there are three elements that drive the cost: level of design, level of finish, and site’s location and accessibility. If you fail to know all of the answers to these, it is not possible to reach a cost on a square footage basis. It would also be hard to have a good estimate for the building or renovation project.
Taxes on top of the cost
It is important to consider the taxes for home building or renovation. There are fees and municipal charges that the the homeowner has to consider when a new house is to be built, or if an existing one is to be renovated.
Defining the square foot cost
The square foot cost varies per developer or contractor. It depends on a lot of things, including the amount of budget you have.
If you’re looking for low-cost housing, it follows that the square foot cost is smaller than the quote for the mid-range and high-end market. Real estate agents and builders also have different ways of computing square footage. Some may use a plain interior space as the basis for the square footage. If this space would include cathedral ceilings, for instance, then the builder would have higher price quote per square foot.
There are other fees not covered when computing the square foot cost such as the land and the site work, designing cost, landscaping, installation of tanks or wells. You need to be familiar with all these, and ask the builder or contractor for a more precise price quote.
Aside from materials and location, the square foot cost is also affected by workmanship for building or renovation.
With better finish, engineering, and design, expect the labor cost to be more expensive than usual. Labor cost should reflect the amount of work done, craftmanship, time, as well as quality.