Whats in a Rebuild Budget

Figuring out how much it will cost to build a house from the ground up is complex; there are so many elements, and the same term can mean different things to different professionals. We have a rebuild calculator you can use, but if you are interested in how the sausage is made, keep reading.

Here’s a quick overview of the elements involved, and what questions you can ask to get clear answers from professionals.

This guide was built in partnership with AIA. 
fact-checked by licensed professionals and building experts. 
Consult a builder or architect for specifics to your situation.

THE MAJOR

ELEMENTS

We find it helpful to think of a rebuild like a pie chart. What’s inside each slice is variable based on the choices that you make. 

The major elements:

  1. Design of the structures and exterior

  2. Prepping your lot for construction (tests, engineering, grading, permits, remediation, etc.)

  3. Project manager to oversee construction (if you hire one) and/or 

  4. Public Adjuster, if you have decided to hire one 

  5. Construction of the structures themselves 

  6. The Exterior - Landscaping, hardscaping, fencing, gates, lighting, etc. 

  7. Costs to live elsewhere while you build (rent, utilities, moving, etc.)

  8. Mortgage and/or taxes 

Hard Costs

vs Soft CostS

This terminology is important to know, especially because when people work on percentages of your build (like architects and project managers), they’re usually referring to taking a percentage of your hard costs. 

Hard Costs 

Hard Costs = Stuff you can touch

If you can walk on it, touch it, or nail it down, it’s a hard cost.

Think: Lumber, tile, appliances, HVAC equipment, nails, etc.

SOFT COSTS

Soft Costs = People, fees, and admin 

If you can’t nail it to the wall, pour it into the foundation, or walk on it, it’s a soft cost.

Think: Architect fees, permit fees, insurance, loans, trash bins, site managers, security, etc. 

WHAT TO ASK

What to ask:

What is your percentage based on? Overall budget, or construction hard costs only? 


What is included in your estimate? What is included in your Overhead/fees?

Cost Per

Square Foot


Cost Per Square Foot

With so many elements in a build budget, the construction industry uses a simplified equation to make things manageable, called “Cost Per Square Foot” (or “CPSF”). 

Cost Per Square Foot is = All the costs, bundled together, divided by the total square footage of the house

The problem: Cost Per Square Foot means different things to different people.

  • For example: 

    • Contractor A may tell you that a home is “$650 a square foot,” but they might only be referring to the cost to build the structure itself - not including the foundation, architecture fees, utility connections, etc. so the total number you imagine may not include essential things. 

    • Contractor B may use “cost per square foot” to refer to the structure, foundation, landscaping around the house, design, etc. 

WHAT TO ASK

  • What is included in your Cost per Square Foot? 

  • Is your cost per square foot based on Construction Cost, or total Project Cost (including soft costs)?

  • If you have any other structures, does it cover detached garages, ADUs, etc?

REMEMBER

Every element of the build budget can be adjusted depending on what’s important to you. Think of it like sliders you can play with, which affect your overall budget. 


For example:

You can choose to hire a lower-cost architect or use free plans and splurge on a pool. Or you can spend more on the design of the home and use lower-end finishes for now, knowing you can upgrade them over time. 

Now let’s play with the calculator and see what you’re working with!