The Tear-Down House is certainly going to be a learning experience for my partner and myself. While we’ve both done some major rehabs (and he has his General Contractors license), this will be the first time for either of us that we’ll basically be building new construction.
Pretty much the only things that won’t be new construction on this project are the foundation that we’ll be saving from the original house (we’ll be adding on to it) and the existing utility connections. And the one added expense/task over new construction will be having to demo and haul-away the existing structure. In the end, I expect the savings on the foundation and the extra cost of the demo/haul-away will be nearly a wash in terms of costs. So, for the most part, I expect this project to cost pretty close to what brand-new construction would cost.
In talking to others who have built new construction in this area, I’ve heard building costs ranging all the way from $60 per square foot to $125 per square foot for mid-grade new construction. I decided to ignore those numbers when putting together my estimated budget, and after accounting for each line-item task, my total budget estimate came out to about $155,000. Depending on what size house we go back with (we’ll be somewhere between 2000-2600 square feet), it looks like my line-item estimate puts us somewhere in the $60-75 per square foot range.
It’s a little scary that we’re on the low-end of the range others are seeing, but like I said, this is a learning experience… 🙂
Here’s how our line-item budget breaks down: