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Step 2: Define dollars

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Now that you have the total square footage, you need to define the dollars necessary in the budget to define dollars per square foot. You don’t want to include all the construction costs in this dollar amount; many costs need to be evaluated independently. Exclude the following costs from this part of the calculation:

 Financing

 Hardscaping (unattached decks, pools, fences, and so on)

 Land

 Landscaping

 Soft costs (permits, plans, and fees)

So, what’s included in your definition of the dollars? Mostly labor and materials construction costs for all the living space we mention in the “Step 1: Define square footage” section are included, plus a few other construction costs, such as the cost of the following:

 Attached decks and patios

 Driveways

 The garage

 Unfinished basement space

 Walkways

Take all your cost estimates and add them together to create a total dollars number.

Building Your Custom Home For Dummies

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