Page 8 - What You Need to Know to Find the Right Builder

Origins of the terminology: Calculating the cost per square foot of a finished

building is a common way to determine value in both commercial and residential
real estate, for insurance tax calculations and to compare rental spaces. Cost per
square foot is used in determining carpet, paint, siding, roofing and other
elements in construction. Ultimately, once a home is completed, and the final
price is tallied, cost per square foot is a reasonable and common calculation for
insurance replacement value, home office space deductions, or tax assessments.

What’s a better question? We encourage clients who are contemplating building
a new home to compare prices by asking “What’s included in the price?” Ask for
details about what materials your builder will include. What type of insulation
they will be using? Are they even factoring in exterior painting or finished
excavation? Tip: Many builders don’t.

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