Good news for Louisiana residents, building a new home in the Bayou State cost less than most other states in the country. When it comes to building a new home in the country, Louisiana comes in the 14th lowest average in the U.S at $117,955. The lower costs can be attributed to lower land costs in the state as well as lower labor costs.
Costs will also depend on the type of home you choose to build. There are three general types of homes a production home, a semi-custom home and a custom home. A production home is a home that is built on a builder’s lot and usually, the lot is located in a planned community or a cluster of similar homes. These homes include the price of the land, permits, design, materials and labor costs. A semi-custom home will allow a buyer to put their personal stamp on the home. The home will still be built by the builder’s floorplan, but finishes and other options can be chosen by the buyer. A custom home is a home that is designed specifically for a home buyer by an architect or a design-build firm.
A custom home takes longer to build in Louisiana than a production home. On average it takes around seven months to build a house in the Big Easy State. It might take longer depending on how much the builder has done such as preparing the land and requesting permits. There are several steps to take when building a home in Louisiana.
Budgeting for your new home is the first and most important step to take before any other process. Every buyer needs to make a financial plan that is well within their budget. Your plan should include a monthly housing payment, with principal and interest, property taxes, homeowner’s insurance, and, in most cases, homeowner’s association dues. Make sure you have enough cash for a deposit, a down payment, closing costs, and moving expenses. Remember that the average closing costs will be between 2% to 5% of the purchase price of the home.
Food for thought, a home in Lousiana averages $95 to $141 price per square foot to build. So a home around 2,500 square feet will cost between $237,500 to 352,500. These costs will vary depending on the area of the state you are building a home in.
Once you have established how much you need to build your home, you will need to choose a lender. A lender will give you a preapproval letter to show a builder that you are serious. The lender can help you estimate your price range. If you are working with a builder, in many cases, builders have lenders and title companies that they work specifically with. Preferred lenders have a good relationship with a builder making the home buyers’ experiences run smoothly.
Once you have chosen a builder and community you will need to choose the lot and floorplan you want. Not all floorplans can go on all lots, so you have to keep this in mind. An onsite sales agent can help you determine which floorplan can go on which lots.
Remember hiring a builder and professionals will help your project run smoothly. Your timeline will change depending on many variables such as the weather, permitting process, and material timeline.
