We’ve discussed the differences between building and renovating on here before, but have never gone into the costs of building a custom home in Toronto. For individuals looking to invest in property, the custom home building allows the luxury of building for the purposes of you and your family, meaning you can bring in whatever styles, functions and necessities you see fit. The custom home building also allows you to avoid the costly changes required to fully renovate an older home, and gives you the potential to avoid the individual attention you need to give your home after moving into a new build.
Despite this, Toronto’s housing market has made custom home building a more difficult process than it used to be, with the introduction of new taxes and bylaws restricting zoning and build approval, especially for larger projects. Unfortunately, wait times for approval are longer than ever, and the building process requires much more patience as a result.
So, what are the costs?
Depending on the size and area you’re building, the features you’re installing and the materials you’re using, the costs of a custom home will vary a lot. Generally, the costs to build a custom home expressed in a “price per square foot” estimate, without land included. While the actual home builder will give you an estimate in /sq.ft, they are not including the building permits, architectural design and interior design, or construction and demolition related fees.
Hard costs and soft costs
These are the fixed costs such as the trade contracts, which will not vary in price and are established beforehand. The cost for a trade to complete their portion of the project is established during the planning phase, and is a fixed amount. For example, you will pay your electrician a set fee for whole home wiring and electrical installations, and pre-determine the materials you will be using during your construction project.
Soft costs, on the other hand, are indirect costs that are not attributed to labour or materials, and will include things such as additional engineering, temporary power, trailers and work supplies and insurance for the job site. When searching for a builder, you will be provided with an estimate and complete list of both the hard and soft costs for your project.
Toronto Area Homes
Custom built homes are generally speaking built for double the price that a production cost home will be, ranging between $200 and $300.00/sq.ft. A high-end builder will likely include additional costs, and can easily charge over the high end. However, you have to take note of the fact that custom home builders are providing you with the versatility of selecting your materials and building related costs, where you can easily reduce the prices. For this reason, it is imperative to have an outline of the materials related costs of your project, as well as a general idea of the features and extras you will require.
Finding the Best Price
When searching for contractors, remember to compare quotes and settling on the best price per value cost of your custom build, or renovation. Remember to only take quotes from custom builders ready and willing to sit down with you, talk to you about plans and architecture, and determine the design specifics before giving you a quote.
In addition: We recommend never simply relying on the cost per square foot estimate a home builder will provide. Take the time to compare estimates based on the services offered, the quality of the contractors hired as well as the prices you contractor offers for material and design. Never simply compare apples to apples, and determine the quality of the service before you decide on a custom home builder.
Luxor Development is your top choice for Toronto area renovation, remodeling, additions and custom builds. Our teams specialize in design and offer the highest quality services for luxury and mid-range custom home builds. Get in touch with us today and start building your home in the Greater Toronto Area and beyond! We look forward to helping you design and construct your dream home.