Building a House for Under 200k
Although in America $300k is the average price for most houses, however, with careful selection of the floor plans, location, square footage, materials, as well as the land you’ll be building on, $200k will be enough to get the job done.
If you have $200k as your budget, then here are a few things you should do that will ensure that your budget is sufficient:
- Reduce square footage
- Select cheap materials
- Build one story
- Build simple
Two things that are majorly responsible for the increase in the cost of a house are materials & labor. Therefore, another way to cut down these expenses is to go for an already developed lot.
Therefore, to build a house under $200k, the following factors discussed in the subsections below should be considered carefully.
Location
When it comes to building a house, location plays a vital role in determining the cost. Hence, local regulations, how much a square foot costs in that location and the lot’s cost itself will influence the overall price of the house.
As we said earlier, going for an already developed lot will help you manage your budget and cut down expenses. Hence, workers will have easy access, and the plumbing and gas lines can be set up easily.
On the other hand, a lot that is undeveloped will require excavation and if the lot is a small one, you could spend up to $4,000 just for this. If your lot is larger, then you’ll spend much more.
Choosing a House Plan
Once you have decided on the location you want to build your home, the next thing to do is to get the house plan. Given that you have a budget of $200k, you won’t be looking for a luxurious house as such. Hence, a 2 bedroom house or a farmhouse is perfect for this budget.
Farmhouse Plans Under 200k to Build
Farmhouses are in most cases one story which means you won’t be violating the guideline we gave earlier. Also, as far as simplicity goes, farmhouses are simple homes that can be constructed using cheap materials.
Low Cost 2 Bedroom House Plan
A 2 bedroom house also sticks to the guidelines above. Since the numbers of rooms are few, it allows you to reduce the square footage of the building. As you’ll come to understand as we continue that square footage plays a vital part in how much you spend eventually.
These house types can be built with 1,200 square feet of space. This will ensure that you don’t spend above $200k given that a square foot averagely costs about $153. Hence, you end up spending just $183,600. If you choose to build on just 1,000 sq. ft., you’ll just be spending $153,000.
You’ll need to contact a reputable architect who will draw the house plans. Once again the square footage will come into play as the architect fee is calculated per square foot. Averagely, you’ll pay around $1.50 for each square foot. Therefore, if you are going for a size of 1,200 sq. ft., then you’ll be paying about $1,800.
We should mention that the cost of building per sq. ft. is higher than $153 in some states such as Connecticut ($172.17), California ($165.66), New York ($165.01), New Jersey ($162.64), etc.
Selecting Materials
We said earlier that materials and labor are the major consumers of a building project’s funds. Hence, selecting the appropriate materials is critical. In this case, you need to go cheap but that doesn’t mean you can’t get durable and eye-catching material. You just need to know what these materials are.
Materials you can go for include reclaimed wood, brick, concrete, bamboo, prefabricated materials. Apart from the fact that you save money with these items when used, these items have a modern appearance.
The Garage
A garage is a necessity for most homes, but since you are on a budget, you need to be careful how you go about it. The cost of a garage is around $49 for each square foot. This is still subject to the materials used. Nevertheless, a garage that can take one car might have you spending around $14,200.
In the event you go for two cars, you could spend about $19,600 or a maximum of $28,000. As far as we are concerned, given the amount of money you are working with, this option isn’t the best for you.
