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When considering building a new home, many people focus on the price per square foot. While this metric seems straightforward, it's often misleading and doesn’t provide the full picture of the actual cost of new home construction. 

At Ernest Homes, we come across many homebuyers questioning what the cost per square foot to build a house with us is. While it’s okay to ask these questions, we want to ensure our clients have a clear understanding of what goes into pricing a new home and why relying solely on construction cost per square foot can be problematic. Let’s dig into the myths and realities surrounding this common metric.

Does the Cost of New Home Construction Rely on Square Footage?

The idea that the cost per square foot is a definitive measure of the overall cost of new home construction is a common misconception. Several factors contribute to this myth, and it's important to understand why this measurement can be misleading.

• Varying Construction Costs | The standard equation used for price per square foot is simple: Total Cost divided by Livable Square Feet (this does not include things like driveways, garages, porches, or unfinished space). However, this doesn’t account for differences in location, local labor costs, materials, and the complexity of the design. For example, two homes with identical square footage can have very different costs if one is built with premium materials and the other with standard options. Additionally, local factors, such as the availability of skilled labor or the cost of materials, can cause the construction cost per square foot to fluctuate widely.
• Quality and Features | Price per square foot doesn’t factor in the level of features and quality of materials used in a home, which can dramatically affect its price. Imagine the price difference between standard wood cabinets versus custom cabinets or higher quality materials and luxury finishes as opposed to the cheapest options to pass builder code standards. There may also be a difference in what a builder considers standard. It's crucial to consider what you’re getting for your money beyond just the size of the house.
• Land & Site Prep Costs | Land may be overlooked in new construction cost per square foot. Unless you’re building on inherited land or purchased the land before building a home, the cost of land can vary based on location. It’s also about more than the land itself. The infrastructure and site preparation play a role too. The condition of the site and the need for infrastructure, such as utilities and roads, can significantly impact the overall cost. For instance, building on challenging terrain or in remote locations may require extensive site preparation, which can increase the cost per square foot.
• Custom Design and Architecture | There’s a big difference between building a home based on a standard floorplan and design or one with unique architectural designs or non-standard floorplans. They’ll often come with higher construction costs per square foot, especially if changes are made throughout the project. Customized homes require specialized skills and materials, which can increase costs that are not included in the price per square foot. For example, a home with an open floorplan, extensive custom windows, or complex rooflines will cost more per square foot than a standard design.
• Economic Factors | External economic conditions, such as fluctuations in material prices and labor costs, can affect construction costs over time. These economic variables are not captured in a simple price per square-foot calculation, making it a potentially unreliable measure of true costs.

Given these variables, it’s clear that relying solely on the price per square foot can be misleading when estimating the cost of new home construction. 

At Ernest Homes, we’re happy to discuss with you overall costs but encourage you to consider all aspects of the building process to get an accurate picture of the costs involved. 

Work with the Best Home Builders in Savannah!

Choosing the right home builder is crucial to ensuring a smooth and transparent homebuilding process. As one of the leading home builders in Savannah, Ernest Homes is committed to keeping open communication with you throughout your home’s building process. 

Our goal is for you to have a home you love at a price that fits your budget. We offer a variety of customizable floorplans, high-quality materials, and the flexibility to include the features that matter most to you.

Ernest Homes offers a comprehensive and personalized homebuilding experience, whether you build from scratch or choose an available home in one of our communities. Each community is thoughtfully designed with a focus on quality, convenience, and amenities, ensuring a high standard of living.

At our Design Studio, you can personalize your new home with a wide selection of high-quality finishes and features. Our experienced design consultant works with you to choose everything from flooring to fixtures, ensuring that every detail reflects your taste and lifestyle. This tailored approach guarantees that your home is unique and perfectly suited to your needs.