Cost to build in loudon area? (real estate, 2015, insurance)

[vivithemage]

I was wondering, what's the rough cost to build if I was able to snag a property where I have permits to build? I have read a few posts about people who went through the process, but though i'd post to get someone who maybe has done it recently. I am guessing $150ish per square foot? Does that include permits, driveway, util taps, etc? Or is that price purely for the cost of the house to be built?

[NC211]

That seems high if you ask me. I've financed several of these subdivisions in Loudoun County over the years, and $150 +/- is more along the lines of the retail market value than cost. BUT, it also depends on how you're measuring the home, as there is some inconsistencies on how it's viewed and reported. You're either measuring on pure square footage to capture the basement and garage, or you're measuring on the main and bedroom level only. I measure on pure square footage (since they get built anyway). Would seem to make logical sense, but logical sense doesn't always apply to developers. Also, it depends on what type of home you're looking to build as well. Detached single family costs more on a PSF basis than attached townhome.

In 2011, I purchased a new construction detached home from a national builder. I paid their full asking price, which on a pure square footage basis, equated to $146 PSF. My home was the second highest price paid at that time (phase one of two phases). Knowing the builder and their target profit return of 20% on the home, backing into that math would put their total cost (including land development) at $117 PSF. Take the land out of the equation, and build cost was probably around $95 to $100 PSF to construct the actual home.

I sold that house in 2015 for $161 PSF and bought a larger home that needed some TLC for $110 PSF +/-. Again, measuring on pure square footage (meaning garage and finished basement), not just above ground indoor space. I am currently in dispute with my home insurance provider over their required inspection of the home to set the policy amount. The inspector came back with a "replacement value" of nearly $141 PSF. Translation - his value is more than the house is worth on the open market, and over $200,000 more than what I paid for it. Now, this is capturing the garage (3 car). So if I remove that space from the equation, is replacement value would be about $159 PSF. Absolute BS, and I'm in the process of proving it with multiple real-world and current examples.

If you're looking to build your dream home and not buying a newly constructed home directly from the builder, then figure around $100 to actually construct the property (not taking into consideration land development...aka...your yard, driveway, utility hookups).

Another way to see this more easily than reading my garbage (thanks for reading this far, by the way), is to google "Loudoun county real estate lookup" and you'll see the tax assessment link. From there, you can type in addresses and see tax assessment values split between the land and the home. Insurance companies typically will look at this information and pad the home value an extra 20% to come up with their "replacement cost" estimate to set the home owner's insurance policy to. On this approach, my current home's replacement cost would come out to.....$100 PSF on the nose today.

[vivithemage]

I have owned homes in the past, but in another state. So I am used to the 20% padding for whatever the gov says its worth, haha.

That's some good info though, thank you. Do you deal with this commonly, or just part of trying to knock that PSF price down?

Do you have any builder recommendations in the area? We are thinking of getting a lot in an established area, not the new communities being built that already have a builder and whatnot.

[BrassTacksGal]

It's Loudoun, with two 'u's.