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How much does it cost to hire a home builder?

The average cost of a home builder is around 150 per square foot. So, if a person is opting for a big home with an area of 4,500 square feet, it would cost him about $675,000. Besides, if someone is opting for a smaller house, then the cost will be comparatively less. Homebuilding involves construction site preparation, pouring the foundation, completing insulation, electrical jobs, and plumbing, installing flooring, fixtures, and more. Given the several steps involved in the building process, we agree that a home builder’s demands/charges are acceptable. On the contrary, if you disagree with what we suggested above, here is a complete guide to home builders. However, not forgetting to mention, not all builders might be expensive. If you have the right builder in Sydney by your side, you may spend less and cherish the home building process more. With several years of experience and dedication, you’ll likely expect the best affordable building service from them than ever before.

Estimating home building expenses one-by-one


Let’s not quickly go through the several expenses associated with the home building process to help you get a brief idea of ‘why the builders charge that much’ and ‘what the building costs involve.’


  1. Excavation: Excavation is the first process you should not skimp on because it’s a necessary step. It can cost $8,000 for 1,500 ft2 and $3,200 per feet depth of digging – so if you have your lot roped off to start this task as soon as possible because it takes about 3-4 months to complete


  1. Construction management fees: Construction managers often oversee projects because they can help with coordinating laborers, managing material deliveries, and artistry quality. A good way for project managers to coordinate these tasks while keeping track of paperwork too! They charge 5% – 15% in total fees depending on experience; this means that hiring someone experienced could save you time by cutting down communication between all parties involved, significantly reducing headaches.


  1. Building permits: The cost of the building permit process can be anywhere between $500 and $3,000, where your location mainly determines the final amount.


  1. Architectural fees: Architects are great to have on your team if you want to avoid costly mistakes. Their job is to design spaces that people will enjoy by ensuring the area’s flow, sightlines, and even proper upper-story projecting in some cases. Architects’ fees are typically between 3% – 6% of the total project cost.


  1. General contractor fees: Most GCs have a markup of 5%-10% from the total cost of goods. They’re responsible for hiring subcontractors, ordering materials, and managing all trade work on your home’s construction.


  1. General contractor fees: General Contractors have a markup of 5%-10% from the total cost of goods. They’re responsible for hiring subcontractors, ordering materials, and managing all trade work on your home’s construction.


  1. Foundation: The type of foundation built by your house can significantly determine your home’s life expectancy. Basements, garages, and even older homes built before 1970 were not required to have foundations. These footings can cost $5-$25 per foot, so hiring someone professional who will make the best possible decisions is better.


  1. HVAC charges: Most homes require HVAC installations, costing around $4-$7 per square foot. Ductwork charges are also included in the total price of installation. This is because ducts cannot be finished even if hidden behind drywall, cabinets, or flooring.


  1. Plumbing: Fixtures and appliances will be the most costly to install, but if you buy in bulk, you’ll probably save on cost. Plumbing costs can vary greatly depending on where your home is located and the location of fixtures like sinks or toilets; for example, water supply lines could cost $1-$3 per foot.


  1. Insulation: Insulation prevents heat loss and helps keep homes more energy-efficient. You can choose between loose-fill insulation or spray foam insulation, which varies in price but provide the same benefits. Woodland Hills General Contractor usually offer materials for both options at an average markup of 35% – 50%.


  1. Fixtures: Bathrooms, kitchens, and even the laundry room all need faucets and toilets, showers for bathtubs. It can cost around $1 per ft2 for a single piece to more than $150 for more oversized items like tubs.


What is cheaper: Buying a Prebuilt home OR Building a new home?


Pre-built home:

The cost of the prebuilt home solely depends on what type of house you are looking for. If the size and style of the place you want are dwelling and modular, you may have to spend a little too much on buying a prefab home. The cost of a modular home is determined by the type, size, and location. It also depends on the material used for construction, as well as storage location and distance from the job site. Therefore, the cost can exceed as much as $200,000 to $600,000 or even more.

Besides, it is hard to ignore the fact, the charges of a home contractor or subcontractors sometimes may be almost equal to hiring a contractor for building a new home.

Moreover, sometimes it may be highly challenging to find the exact or even similar home you want. Generally, after searching for months, people won’t get a suitable home due to the lack of particular renovation, energy-saving measures, proper insulation system, or etcetera but may be perfect in looks.

Thus, it is difficult to say whether a prebuilt home is a perfect solution over building a new one.

Building a new home:

Although building a new custom home may sound like an expensive concept yet, it won’t if the best home builder in Sydney has your back. Building a new home has several advantages too. With this process, you can limit the risk of going over budget, plan the duration of the entire construction process according to your convenience, and get the house as precisely as you want, which is alone enough reason to choose to build a home over a prebuilt one.

Final Thought: What you should consider, Prebuilt home or home building

Whether you consider buying a prebuilt home or building a new home, remember that there are potential charges you may expect in both. However, given the reasons mentioned above between the two, we would suggest, Building your own home is one of the most significant investments you will ever make! You could save money by doing some simple things like pricing out materials and hiring subcontractors before you even break ground.

How to find a good home builder in Sydney?


1) experience:

A home builder has to have a minimum of 5 years of experience in the residential building. Get a look at his past projects and history of clients, for this, would give you a good idea of whether he is capable of building what you need.

2) services: 

ask yourself what your requirements are before choosing home builders in Sydney. Are they providing new homes or renovating? How many years have they been servicing? Can I get the best quality within my budget?

3) Licenses: 

To determine whether they have licensed or not, check with government agencies that permit contractors in your state or country. Every home builder should have a current license.

4) Insurance:

Find out if the home builder is certified and has the license to build homes. It would help you earn some assurance that all building codes and standards will be complied with across the board.

5) Proof Of Licence And Insurance (POLI):

if the home builder is not certified, he might not receive your agreement in writing because, in its proper sense, it’s essential for any legal action in the future in case your build is in some problem.

6) Reviews:

 Do some research on the internet and look at the reviews and testimonials from previous clients. It would give you a good idea about the home builder’s reputation.

7) Guarantee:

each quality home must have some sort of warranty. It’s an assurance that your investment is in safe hands, and you will not have to face any side effects after building your dream home.

8) Communication:

one of the most critical factors for a good building company is communication skills to easily manage your project by providing updates, planning meetings, and planning out tasks accordingly.

9) References: 

get a list of references from the builders you consider and reach out to them.

What are the questions to ask a home builder before hiring?

1) How many years have you been building homes?

The higher the number of years there is higher the probability that they know what they are doing.

2) Can I get the best quality within my budget?

Before hiring, ask them to provide you with quotes from different companies. Compare the quotes and ask for better ones until you are satisfied with the quality, prices, and warranties.

3) Can I get the best quality within my budget?

Before hiring, ask them to provide you with quotes from different companies. Compare the quotes and ask for better ones until you are satisfied with the quality, prices, and warranties.

4) Do you handle all services (electrician, plumber, etc.) Have you used these tradesmen before and would recommend them?

It would be best to hire a home builder who has good working relationships with tradespeople.

5) Do you have any affiliation with the major suppliers of building materials?

Having good relations with suppliers means that they can get better prices for you.

6) Are you a member of the Building Professionals Board (the governing body)?

Builders who are members of the Building Professional Board would make sure that your project is in safe hands and all legal requirements are fulfilled.

7) Can I get a detailed cost breakdown, including any costs (overall and per unit)?

If they can provide you with this document, it would make your life easier. Make sure that the estimate is reasonable and the costs per unit are close enough to market rates.


So, what we can conclude here is the fact that both renovating and building a new home can be expensive in terms of budget and time. However, we suggest you make your own dream home by hiring Strati Constructions PTY Ltd., capable of delivering customized homes with quality and at a reasonable price. They can help you with the materials and labor charges and what will suit your home building process best.


For over a decade, I, Judith Raanan, have been working as a freelance writer and published author for several Top magazines and websites Like Medium, Elle, and Vogue. I have dedicated a couple of my years to creative writing at one of the Top-leading companies in the US. Being a graduate of Harvard in BA, I have also served as the senior creative writer assistance to our fellow colleges.

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