Cost of Building Our Home in 2024 | Current & Projected House Budget Ep. 24
In this Building a House Episode we discuss the costs we've already incurred and then compare our actual costs vs the costs we predicted in 2023. We share why some of our predictions were off and give you the remaining predicted costs in order to estimate the total cost of our house build in 2024. This is a 2,800 sf ranch style, custom, home located in SouthEast, Michigan on a 3 acre lot. In the end we share why we are $150K over our initial budget and how we are affording the new total.
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We're Faris and Lisa
We've traveled to 40 countries, experienced van life for 1.5 years, and now we are building our own house from start to finish. Subscribe to follow along on our journey!
Can’t wait till y’all can be paid full time being content creators because you have the personalities for it. These videos are always fun to watch. Just rewatched your telluride and van tour episodes. Can’t wait for more. ❤
Thanks Adam! We always appreciate your kind comments! I think the Telluride video was one of our favorites we’re actually heading back there this summer 😆 hope you are doing well!!
Thanks guys, so refreshing to see videos like this and what you share. Im in progress of building my own house and its very helpful to compare and relate to your journey of building your house. Thank you. Happy for you both.
Thank you for being so open about pricing. Whenever I look for videos on home building or reno I always want to know costs of things. And you guys do that the best of anyone out there.
Of course, hopefully it helps people get some type of idea whether someone is looking to scale up or scale down. This is all a learning curve for us as well :)
The fill dirt info is so cool. Never knew this!
Faris and Lisa, I'm thrilled I have stumbled on this! My wife and I have just purchased land in Calgary, Canada and are about to embark on a similar journey as you. I have literally a hundred questions and seeing this type of video that is SO detailed, contains rough costs and sequential building phases, and clearly displays your personalities and preferences is a gift. I'll be watching your entire series to get a better understanding of our options as owner builders. Thank you so much.
Hi Clarke, Thank you for the great comment. We actually just made a video that will be posted this Sunday in response to your comment and many others. We hope to address the common questions we are getting and give a little more detail into our thoughts on our build. All the best!
Thank u for sharing your video. My husband and I are in the process of buying our first home in Warrington, PA. A lot of the houses are listed for millions of dollars. However, I believe that we can build our dream home for half a million. Just like u, guy. I really want us to build from scratch so that we can have all the things we desire. I came across your video becos I wanted to see how much it will cost. I am so excited to see this video. Thank u. Thank U.. Thank u.
Great video as always. Thank you for sharing fellow Michigander.
Thank you for your kind comment! Much love to all Michiganders ♥️
This is a beautiful home 😍i always get happy to see other people do stuff like this lol
That's great that you've put all of the expenses out there!! It gives potential home builders in your area a guide!! Tiger Rogers.
Hi! We hope it helps even a few people out there because we had and still have so many questions about building. Everyday is a learning process for us :)
Hi Lisa and Faris, it's awesome you guys are working together to build a beautiful home. And you're producing some great content. Thank you. I'm curious about the current and anticipated property taxes when you complete. (My wife and I are watching and dreaming of doing something similar - (you guys are inspirational.)) Has your 2024 assessment increased based on the current progress or partial completion? Did anyone give you an estimate of what you should expect to pay for the completed house? (Based on your video's I'm fairly certain this is your "forever" home.)
We are doing the same now and its brutal how much everything costs. We are in the North East and we had to have a $30,000 septic. My bid for insulation is $20k includes a full walkout basement. Thank you for puting you numbers up. I may do the same when we are done!
I know you're over budget but I love everything you've done so far. You have saved money in many areas (fill dirt, stepping down in cabinets in the bathroom, using remnants in the bathroom, etc.) ....I think you're doing fantastic. I wish you all the best in finishing your project.
Thank you for such a nice comment and the encouragement! We appreciate your support as we keep moving forward on this house build journey!
I regret going cheap with interior doors. The more expensive once look 100 % the same, but they are not hallow inside, which I wish we had in some rooms for sound dampening. Loved your doors and LOVED the style of the house! :)
FARIS AND LISA much love from Kenya . your project is awesome.Thanks for the enlightenment on your budget ..back in Kenya am planning to build mine 10thousand dollars will do a good three bedroom house . taking one day at a time my young family will have one soon
Thanks for the love from Kenya! Prices internationally are going to be so much different to ours. Very cool to hear from people in different countries and what the costs are for them. I hope the very best for you and your family.
Pretty darn good on your budgeting, often people forget that saving 4k in labor costs is not worth it if one has to give up 8k of income. It's a total learning curve and it sounds like you guys are figuring it out fast and making smart moves. Plus as you touched on at the end, as long as you are in the range of your general market it' all good. Plus of course you are building for yourself, not just a flip for profit so it will appreciate over time while you are living there. Very wise beyond your years I'd say, keep at it...
Thank you BKK, that is exactly what it is for us! A learning curve. That will help us along the way as we continue to build homes in the future for ourselves or others! We plan on building more, but not sure if they will ever be as "special" as the first one :) As always we appreciate you and your wife's love ❤️
I love your new home and the land is incredible.. Where I live 1/3 of an acre building lot runs around $200k in a subdivision, no trees.
Hi, thank you! If you drive a 5-10 miles from our house $200k for 1/3 acre is common as well. Those lots are closer to shopping, cities/towns. Location is a huge factor in lot price.
Hey there. Glad to see the new video. We are always waiting for your updates. Quick question - what did you mean by a private loan for your build? We are planning to use a construction loan for our build next year. Keep up the good work. Love the videos.
Hi, Thank you for watching! We are fortunate to go through a private lender that is not a bank or credit union. Similar to how startups acquire money from Venture Capitalist's and we set our terms and conditions. That is an option, but not common. Construction loans are a great option, but we were not able to find one that offered the flexibility we were looking for. Hope that helps!
We purchased and rehabbed an old 1927 property back in Nov 2020, and were over budget by right around the same amount. $8 2x4's and increased construction costs in all facets really hampered our finances, and still do. We should have the additional costs paid off in two years, but I feel your pain!
Hi! Thank you so much for watching. If you can find land for a good price then that will be the main thing. Remember to get as many quotes as possible and check out their previous work!
Woww! This home in Windsor Ontario would cost about 1.3 million. Congrats!
Great stuff, guys. I'd love it if you did a video on HOW to budget for a house build. I literally can't find a single video on KZhead about it. Maybe I'm missing something 😅. I'm gearing up to build and the answer can't (not so) simply be "go to a hundred different stores, look at a million different items, add up a thousand numbers and get quotes from 100 contractors".
Hi Brett, The best way is bidding out at least 3 companies for each process. Materials are not too hard to budget for based on the sq ft home you are looking to build and those per sqft prices are usually online. Building is a huge, long process. Unfortunately, there isn't an easy way if you are doing it yourself unless you have comparables from previous builds or you go through a builder who will quote you based on his/her previous builds. Our design guide goes into pricing depth that you can use as a basis. Just like cars... you can purchase an economy car or a luxury car and that will change your pricing dramatically.
@@FarisandLisa Well said, getting quotes will help give you an idea of what it would cost. Building material prices can vary by time of year, as well as supply & demand in the market. Labor costs will depend on the area in which you plan to build. Costs can also vary widely depending on the quality of materials you plan to use in the construction of a home as you alluded to. Availability of certain materials can also be an issue if you're really after a specific aesthetic for a home. Some flooring companies for instance will only manufacture a design for a couple years before they discontinue it in favor of following a new trend. Some questions you want to think about are: Does the land I want to build a house on need dirt work? You'll likely need to get a soil report before building. Do I need excavation for a basement or are you going with a crawl space or slab on grade construction? How will waste water be handled on your property? Do you need a septic system? How will you get your other utilities? Gas, electric, and water, with the latter two being required for a home. What sort of home do you want to build? Energy efficient, passive house standard, or the bare essentials (i.e. meets code)? The more complex a home, such as large open spaces, big windows, intricate millwork, and various other details can really add up in a build. Also, whether you're doing the work yourself or hiring a contractor(s), you'll want to spend some money on an architect to draw up some plans and have an engineer approve them. If you want an idea for what a new home would cost to build in your area, you can try and look up new home prices and subtract 15-20% from their listing price. That's honestly probably too much of a deduction, but it should give you an idea of what it would cost to build a similarly sized home.
Where did the ceiling tongue and groove lumber come from?
Me personally I’m ideal house would be a nice modern custom house and the minimum square feet is 6,000 and the max square feet is 9,000 I live in Pennsylvania and if I had to pick a budget it’ll be 2.5-3 million dollars cause building a house is expensive in general but building s house that big is crazy and I’d try going for a land that’s not too expensive
So after you spent the $612k to build it, how much would it sell for in that area if you sold it the day you completed it?
$162k for framing and a few steel beams? WOW!
Hi, I have couple of questions 1) is building your own home without GC saves you money overall? How much will that be about 20%? 2) How do you handle subcontractor payments? I heard that they run away with your money after sometime. Would appreciate your input. Thanks
You will pay about 20-30% more but will be covered by his insurance, and if he does his job you will get a much better finished product bc he will make sure the subs do everything correct and will prevent corner cutting. Also some states and companies warranty their work for years. If you manage the job yourself you are responsible for everything and can get into serious financial trouble after only a few mistakes. The subs don’t care, and need to be beaten into submission with the threat of loss of future work and non payment. Further if you are gonna do it yourself don’t hire any Mexican or South American companies or workers, they rarely if ever do a good job, and have no idea what building code is, and likely neither do you.
Hi, builder fees are usually 15-25% of the total cost. It can range greatly. You will need a builders license if you plan on acting as the GC. Every subcontractor is different and it depends on the relationships you have with them. Some of our contractors have been working with Lisa's dad for a very long time and those payments tend to be more flexible. Sometimes we pay in installments and other times we pay upon completion of the job.
Hi guys! Really nice work 😊 I have a question. 🎉😊 How much did the framing materials and labor cost? How many square feet house was built?
Hi there! Our framing and materials was $162k for 2,800 sf!
@@FarisandLisathat’s crazy
You guys are RICH.
We've been told between 300-450 per sqft for our 3600 sqft house so far.
We are right around 225 per Sq ft, but some of the luxury homes Lisa designs can easily get in the 300+ range. Also, if you are hiring a builder then $300 seems reasonable.
@@FarisandLisa that's reassuring! We'll be hiring someone, definitely impressed by all you've both done!
I'm in CA. To add 1600 sq. feet and a garage to an existing house will be well over $700,000. It''ll be nearly 100,000 in architecture, soil samples, and random fees. It's nothing exotic, just flat ceilings, single level, Ikea kitchen, nice bathroom fixtures. It's been 5 months, and if I am lucky, I'll get permits this week. I can't even imagine what they will cost. You are wise to build where you are!
Im trying to extend my house in California. Do you have any tips to go through the building and permits process. Im not rich so I have to do the bulk of the work myself. Thanks.
@@Hi-Ilikefood This is my first project like this. Once you are over 500 sq. feet, that's when it gets complicated and expensive. Once you are larger than 500 sq ft, the "developer" fees kick in. In my case $8000 to the schools, and $5000 or the fire dept. plan check was $4500. I won't know the cost of the actual permits until later this week. The Architect /engineer was $26,000. If this project causes the county to reassess my taxes, it could cost me $500 a month for the rest of my life. How much do you love California? If you can leave, you should. Other states don't abuse you like that.
@@SoCalVipers I wish. I am already abused by the state. I bought a house and in a month got a letter about adu and now I have to figure out a way to legalize it. I already spent all my money buying the house and now this. Thankfully its less than 500 feet otherwise your right its a whole lot more pain. I have no other choice but to soldier on and try to get this thing done and mostly myself unfortunately.
This is why housing is so expensive in California. Just government building codes make it cost more, let alone the time it takes to wait for them to give you permission to do anything. And don’t get me started on taxes.
@@SoCalVipersanother thing about this I don’t like is if you dare, if you even DARE, to earn more than the working poor or create generational wealth, they want a large portion of it. So much of a large portion that you have to work twice as hard just to move upwards.
Great vid! Knotty alder is really not a premium wood. It’s consider a soft wood that can scratch and dent very easily. I would be mindful if you have pets. They are attractive doors. Private lender aka jerry? 👀😝 Poor Jerry or maybe not poor.😂 Your house is looking great 👍🍺
My current home is a split level small house built in the 80s. It’s on 0.56 acres, which is a lot when comparing it to the new builds in Atlanta that are sandwiched next to each other. I’m wondering if it would be a good idea to tear down our home and rebuild a newer more modern home. Is it worth it?
I guess it all depends on your budget. Closer to Detroit the suburbs get tighter and tighter without any new lots and it is very common to buy an old house, tear it down and build a new house on top of it.
@@FarisandLisa thank you for response. It’s great to know that it has been done before.
Where did you guys buy your home plans? 😊
We created them with Lisa’s dad who is a builder! You can find them in the link in the description 😊
Rough frame labor How much cost ?
The framing and labor came to $162k
What state ?
@@henriqueduarte7600 Did you watch the video? They say it in the intro
I think you got ripped off on the basement floor and the framing. Your driveway cost less money and at least appears to have the same if not more sqft of concrete. The framing, i guess that depends on when you bought your lumber. Prices are down a lot right now.
Why was framing so expensive
The cost of lumber was very high when we purchased.
This house would cost around 3 million to build here in Northern VT
Wow, I guess every location is relative to price. If we were closer to the city a house our size would be closer to 1mil+, but the land would have been 5 times what we paid.
Dream houses have a high tendency to go over budget. At least you can write some of it off as a business expense 😂
Hahah they do don’t they! That’s some positive thinking 😁
Where is the videos I’m awaiting the completion of your home
They come out every other Sunday, we just posted today 😊
Looks like the goonzquad kids house…..must be a plan online….
What’s a goonzsquad kid house?!
@@FarisandLisa search ……goonzquad
sheesh and here i am making 45k a year and im struggling to comeup with financing for 170k . i cant fathom 500+k
Better get a better job, son
@@wayneguy6043high paying jobs are not easy to come by or I’m sure he would. At least he’s trying to be a productive person and buy a home.
You both doctors
You must be building this house cash out your pocket because a bank won’t actual numbers not a prediction
Really freaking pissed about living in salt lake right now. Haha. Salt lake market: That'll be 5 million. No Joke. Buying a real mediocre build for $800k right now lol.
Wow the home prices in the west continue to surprise us. I think land in general in the Midwest is a lot cheaper overall. If we're closer to the city or the heart of the suburbs then our lot price would go up exponentially. That being said the other costs would remain nearly the same.
Michigan is super cheap to build !
❤🤍💚
What a nightmare, it’s like an obsession. You guys take a rest it’s a lot
Yoo
👋🏻
You can’t be $150k over budget, that means you really didn’t have a budget 😂. I’m sure it’ll be everything you want in the end though, which is what matters.
:) Yes, that is true. We are $150k over our original budget, but over time we were able to allocate more money to the build. So I guess now we are right on budget.
This is really discouraging. Might have been better to renovate an old house or just paid a bit more and bought a newly built house.
Why is this discouraging?
@@FarisandLisa its so expensive.
I don’t think it’s discouraging. Most new homes cost way more and you have “reach out and touch someone” as neighbors. Plus builders are all building the same cookie cutter style homes. I think this is great! Gives me hope to build my dream home on 5 acres of hand.
If you go $150k over budget, you never had a budget in the first place.
As we said in the video, we changed our budget throughout the build as our circumstances changed. Somehow trying to convey that to our audience so they know why there is a difference.
I love how my dude keeps nodding in all the scenes. Bro, just put a baby in her already. Thank me later. It's what this whole thing is about.
Hahah I am an NPC
Good luck trying to get all that money back and more at the time of sale of your h🏠use 😂😂😂😂