Amenities, location affect cost per square foot

“It’s a pretty loaded question because there is a lot of discrepancy about what a typical home is. ‘Typical home’ can mean anything. Not only will you have different styles so far as single story, two-story home, split-level home with a basement, but then you have different levels of amenities within the home. A starter home is not going to have anywhere near the amenities that a custom home does,” Bradley said. “Hopefully we will be able to show the amenities that you get for the price that you get.”

To educate home buyers and combat common misperceptions about buying and building homes, Bradley is teaming up with Bob Fitzgerald, a developer and Realtor, to present a seminar titled, “Matching Dreams with Square Foot Costs,” at the HBA Home Show Feb. 4-6.

Addie Walters, director of member services the Home Builders Association of Greater Springfield, said that the topic is a welcome addition to this year’s Home Show lineup.

“We have a lot of homeowners that call – whether they are wanting to build a new home or are in the market for a home that is already built – and ask, ‘What is the average cost of a home per square foot?’” Walters said. “It’s very hard to explain that you just can’t give out a number; it depends on what goes into the home. The cost is going to be different depending on if you have carpet in the home or marble in the home or tile – is the home bricked or siding – that sort of thing. All of that goes into the square-foot cost. Location is also a factor. All of those factors play a big part in the square foot cost.”

Bradley and Fitzgerald will address a number of topics.

“I will be talking about the styles of homes that people build, the selections they make, and the size of the home and how those factors determine cost per square foot,” Bradley said. “I’m not going to say, ‘A starter home is X dollars per square foot.’ I am going to be saying, ‘A starter home between 1,300 and 1,800 square feet is typically running $X-$Y in this area depending on what selections you make. Obviously the more upgrades you make, the more expensive it is going to be. I want people to know that there are no hard and fast rules when it comes to cost per square foot, but there are things that factor into that cost.”

Value vs. cost

Bradley said it’s important for homeowners to consider the value as well as the cost of products used to build a home.

“With insulation, for example, you can buy just standard insulation and it will cost less. Or you can spend twice as much for higher rated insulation – the cost is twice as much up-front, but you have to factor the payback in there,” he said.

Fitzgerald, who is managing partner of First Venture LLC, will address location, which is another major factor in the cost of a home.

As a developer, Fitzgerald is well-versed in the factors that affect lot price, which in turn affects a home’s price per square foot.

“What I am going to be doing is making some comparisons between lots that are or have been available and what the prices are or have been,” Fitzgerald said.

He added that just as homes have variables that affect their cost, so do lots. Location and size are among these, but more specifically, the type subdivision has an affect on the cost.

“There are homeowners’ associations in lots of subdivisions. They sometimes have amenities available to the homeowners that add to the value of the neighborhood. With a homeowners’ association there are going to be dues. The dues will vary depending on the amenities that are available in the neighborhood,” Fitzgerald said. “So in other words, the dues on a lot where there is trash pick-up, where there are pools and tennis courts and common areas to maintain, those dues are going to be higher than in subdivisions where either there is no homeowners’ association or where the function of the association is much less.”

Fitzgerald and Bradley said that their main goal is simply to educate consumers so that they know the proper questions to ask when buying or building homes.

“We’re just trying to give people information on what they should be looking at when they are looking at lots. There are a lot of variables that affect price per square foot,” Fitzgerald said.