One of the difficult areas involved with building your home as apposed to buying an existing home, is foreseeing the building cost. Today the average new construction home builds anywhere from 95 to 150 dollars a square foot. But when budgeting for a 2000 square foot home, that type of price margin is not something that you want to see.
These are a few tips to help you have a better idea of exactly how to get that budgeted price closer to the actual price. The first thing that can really set the price higher is quality; such as floors and siding, on the floors, obviously, the hardwood is going to be more expensive than the linoleum. On the siding, Plastic siding is always cheaper than masonite, and masonite siding is always cheaper that brick. The best thing to do in picking out your homes material is go to your local building supply store, find out what you like and check the different prices, then you’ll have a better idea of the price when you tell you’re builder what your looking for.
A great tool to help you calculate the cost of building your home is the internet. At building-cost.net, you can fill in the blanks and get a pretty close idea of what your home will build for. This website allows for everything from different fixtures, cabinets, to location.
And the last thing and possibly the most important thing in calculating your home cost, is the builder. Every builder is different. And although every builder’s cost is close, they are usually not the same. What the builder charges to build per square foot plays the largest part in determining the building price of your home. The best thing to do is interview at least 5 contractors, asking for their license and references; after which, picking whom you feel to be the most trustworthy, as well as the one with the highest quality of work.
There has been a shift in the risk of home price reductions in the U.S. towards Florida and California and some areas of the southwest, according to the PMI Mortgage Insurance Co.'s Summer 2007 U.S. Market Risk Index. The index ranks the 50 largest metropolitan statistical areas in the U.S. according to the risk of home price reduction in the next two years.
On an average, the 50 MSAs scored 346, which is 34.6 % possibility that home prices will reduce in the next two years. The PMI risk index model has been updated this year with the inclusion of the recent price volatility in the market. Also this year's index includes risk ranking where in MSAs with consistent characteristics are grouped under the same rank. Thus we have Riverside, CA, Phoenix, AZ, Las Vegas, NV, and West Palm Beach, FL group ranked on the top of the index having about 60 % chance of home price reductions in the next two years. Five MSAs in California - Los Angeles, Santa Ana, Oakland, Sacramento and San Diego in California, and four in Florida - Orlando, Fort Lauderdale, Miami and Tampa, feature among the top 11 that face a home price decline of more than 50 %.
Home price appreciation rates have slowed in almost all the 50 largest MSAs. The number of MSAs that saw a home appreciation in the double digits in the first quarter of 2007 has declined to five, way below last year's 26.
Markets which have had a history of price volatility are more likely to experience home price decline in the future, according to Mark F. Milner, PMI's Chief Risk Officer. Still with all these going ons, it is not a bad time to buy a home as a long term investment as long as buyers pick their mortgage package with care and have realistic expectations of their properties appreciation.
The following are the top 15 metro areas that are likely to experience home price declines in the next two years, with their group ranks at the front, and scores at the end.
1 Riverside-San Bernardino-Ontario, CA ? 652
1 Phoenix-Mesa-Scottsdale, AZ ? 646
1 Las Vegas-Paradise, NV ? 614
1 West Palm Beach-Boca Raton-Boynton Beach, FL ? 607
2 Los Angeles-Long Beach-Glendale, CA ? 586
2 Santa Ana-Anaheim-Irvine, CA ? 577
2 Oakland-Fremont-Hayward, CA ? 572
2 Orlando-Kissimmee, FL ? 563
2 Sacramento-Arden-Arcade-Roseville, CA ? 560
2 San Diego-Carlsbad-San Marcos, CA ? 555
2 Fort Lauderdale-Pompano Beach-Deerfield Beach, FL ? 542
2 Miami-Miami Beach-Kendall, FL ? 524
2 Tampa-St. Petersburg-Clearwater, FL ? 506
2 Boston-Quincy, MA ? 501
2 Washington-Arlington-Alexandria, DC-VA-MC ? 500
Be sure to contact a local Realtor if you are thinking about buying or selling a home, condo, or any other real estate.
Both Benjamin Debell & Real Estate Advisor are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Benjamin Debell has sinced written about articles on various topics from Real Estate, Home Improvement How to and Education. Ben DeBell is a leading Real Estate Professional in Tulsa, Oklahoma. Visit Ben’s website, visit his. Benjamin Debell's top article generates over 720 views. to your Favourites.