There are many reasons as to why a homeowner opts to build his or her own house. And while some people are just too handy to pay a contractor, there are those who have tried to find a reliable builder but have failed. This is never an easy situation to deal with, knowing that you can build your own place but don’t really know where to begin. These people choose building over hiring a professional builder because modern plans are complicated and cost-effective contractors are hard to come by these days.

Breakdown of cost to build a house

The average cost to build a new home in the United States is $350,000. This number includes all of the costs associated with building a new home, from land purchase to construction to closing costs and everything in between.

The actual cost of building your own home will vary based on where you live and the size of your lot. The cost breakdown below is based on national averages.

Land: $20,000

Lot fees vary widely depending on where you live and how much land is included with the house. In many parts of the country, it’s possible to find small lots for less than $10,000; in other areas, you could pay more than $100,000 for just one acre of land.

In this example, we’ve assumed an average lot fee of $20,000 — which includes the price of your lot plus any additional fees that come along with buying it (such as surveyor’s fees).

Costs to build a new home

The actual cost of building a house will vary greatly depending on the size, location and design of the property. 

The average cost of building a home in 2017 was $328,750 in new construction and $240,500 in existing homes.

1. Site Preparation

Site preparation is the first step in building a new home. The builder will need to prepare the land for construction, including all grading, utility installation, and clearing. Most builders will provide this service as part of their package. If they don’t, it’s important that you know how much this is going to cost so that you can factor it into your overall budget.

2. Foundation and Framing

The foundation and framing is the second step in building a new home. This includes digging out the footings and pouring them as well as installing all structural support beams and posts. It also involves framing out the walls using either wood or steel studs and installing insulation between each layer of wall studs (if applicable). This is probably one of the most expensive parts of building a new home because it requires quite a bit of labor, tools and materials. However, if you’re planning on building your own house then this might not be an issue for you!

3. Electrical & Plumbing Work

Installing electrical wiring throughout your house and plumbing pipes under your floors are both integral parts of any new home build process but there are some pretty big differences between them too! Electrical work requires specialized equipment