Kit Home Costs – How to Figure the Cost to Build Using a Packaged Home Kit

This could be your time to build. You’ve decided that the only way you’re going to make this happen is by building a kit home. You understand the advantages of having the majority of the materials in one package with much of the framing labor done for you.

 

And, you appreciate the value of controlling your costs.

 

But, what is the price tag? You just want know! Well, you need to dig much deeper than that. First it’s critical to set the stage a little.

 

The Kit Home Price Tag is Just Part of the Equation

 

Do you buy things based upon the price? I know I often do. It’s pretty much a habit, isn’t it? When we do this, we often neglect to differentiate between finished products like a TV, vacuum, car, or completed home and something like a kit home that is more of a process than a thing. This is why, when figuring the costs of building a kit home, the kit’s price tag is of little value.

 

Because of our “price tag fetish”, we have become so conditioned to just ask for the price no matter what we’re buying that we often overlook the real or complete cost of things and make blind decisions.

 

You are doing yourself a disservice if you do this when building a kit home.

 

What Are You Really Doing?

 

You’re not buying a house, you’re building a home. Let me go even further; you’re not just buying building materials, you’re embarking on a project, an adventure … an adventure that takes preparation, equipment, and personal involvement throughout.

 

For comparison, think of an African Safari.

 

Just as an African Safari requires many things (like vehicles, food, tents, guns and guides) for a successful adventure, building a home takes similar preparation and involvement. And, just as you wouldn’t try to figure the price of the safari by asking the cost of the tents alone, you shouldn’t focus on the cost of the kit home package.

 

The Kit Home Cost Equals 25 – 40% of Your Home Building Cost

 

While the percentages are different for every situation, the cost of the kit home package vs. the cost of completing your home will almost always be half or less.

 

What determines the percentage has everything to do with who’s providing the labor, the cost of the land you’re building on, the money it takes to add or connect to utilities, the cost of architects and engineers, the cost of the loan, and your “home-building coach” fee.

 

Considering these things, you can see how the price tag on the packaged kit home is just part of a much bigger picture.

 

Research, Preparation, Price Tag

 

I encourage everyone I help to research, learn, and compare wisely. Make sure that when it comes time to ask for prices, you’re evaluating similar offerings. Once you’re serious about building, part of your preparation should be to find a home-building coach who can help you analyze and calculate.

 

After you’ve prepared, calling for prices on packages is more productive. You’ll not only be able to compare package prices from one company to the next but you’ll be able to see the relationship of its price to the entire building project.

 

Only then does the price really mean something. Now you’re on the right track! Keep reading and learning. 

Read more.