We finished construction of The Tear-Down House (our new construction project in Atlanta) about two months ago. Ultimately, the house ended up being 2672 square feet of finished space, which was a good bit bigger than we had originally designed and anticipated. But, our final cost on this one ended up surprising both my partner and myself.
The total cost to for tearing down the existing house, getting drawings/permits and building the new house came in just over $160,000, which put the per-square-foot cost at right about $60/square foot. Most of the big builders in Atlanta are building for $58-63 per square foot, and this puts us right within that range, which is quite an accomplishment as far as I’m concerned.
Here is a final breakdown of the costs:
Congrats!!
Congrats. The only thing I didn’t see was the lumber cost on your list?
Hi Jason –
The framing was contracted out to a turn-key company that is both a supply house and an installer, so the $29,315 for framing included all materials, including lumber.
You built a bigger house than me and for less money. Great job.
Hey Jason –
Not sure where you’re located, but building costs in Atlanta are pretty low…
I’m in kentucky. I think I way over spent on lumber and framing costs. I probably should have gotten more bids. I will do better when I build my next one. Keep up the good work. Its amazing you are able make money in real estate in this economy.
Congrats Man!
I can’t wait to see more pictures!
Did you utilize a typical construction loan?
Hey Jimmy –
This was an all cash deal, so we didn’t get any type of loan. Typically, when we do get loans, it’s private money from passive investors or partners. Construction loans are great if you have no other options, but the overhead and accountability can be time consuming when dealing with a typical lending institution.
Nice job. Are the builders building at a cost of $58-63 price per square foot or selling at that range?
Mark –
That’s building costs for mid-level finishes (hardi siding, oak hardwoods, granite, etc). Sales values are highly dependent on location, but $100/sf is probably a reasonable ballpark for new construction in most typical Atlanta areas.