We’re in the process of buying a vacant lots in Los Altos Hills. Obviously there are a million factors that go into determining the final costs, but can you to take a low-medium-high stance on how much a new home construction could cost in this area?
Thanks for the question Surag. You are right, a million factors will ultimately determine the final cost of a construction project. However, at these very preliminary stages of project development you can usually rely on some simple rules of thumb to establish a budget.
For lower-end custom home construction you should budget $200-$250 per s.f.
Quality mid-end construction is more like $300-400 per s.f. and we find man projects will fall somewhere in that range.
High end projects start to get the most variation in cost as there can be a very steep cost increase as your make certain finish and equipment choices. For preliminary budgeting purposes you can start with $500-$600 per s.f. in this market but be aware that you still need to stay on top of things to keep it from escalating to $700-800 or more.
In addition these numbers you should also budget about $100 per s.f. for exterior hardscape construction. (driveways, walks, patios, decks, etc.)
We recommend you include at least a 10% contingency in your budget to address any unexpected costs that may arise during construction. With quality, accurate drawings and a good team managing the project you can stay on top of a lot of these unforeseen issues and stay on target with your budget.
Good luck with your parcel search. Be aware that there are some neighborhoods with strict CC&R’s so look into those before making any final decisions and adjust your plans accordingly.
