Can I build a house for 100k?

Shelter is one of the essential human needs. But it has also become the most unaffordable expense for most families. With the high cost of homeownership, many people find it difficult to buy a house, leaving some to consider building homes. If you plan to build an affordable home, you might wonder, can you build a house with 100k?

The average cost of building a house is $150 per square foot. So, it’s near impossible to build a house with 100k. But it could be possible if you already have land that’s near all the utilities and you have construction skills and experience. However, you still need experts for specialty jobs.

Regardless of all these, there are still tips you’ll need to follow to ensure the successful construction of a house with 100k. Here, we discuss whether you can build a house with 100k and tips on successfully building one.

Cost of Building Custom Houses

Building a custom home is one of the easiest ways to overspend on the house, but it can also be a good way to save on home ownership. Building a house is usually between $100 and $500 per square foot, with the average at $150. Due to the high construction cost, the average cost of homes in the US is usually between $350k to $400k and higher.

Even in the cheapest states to own a house, such as Arkansas, Mississippi, West Virginia, etc., the average cost of homes is still above 100k. This leaves building your own house as the only possible option for you to become a homeowner while not spending above 100k.

Factors Determining Sufficiency of 100k for Home Construction

Even when building a custom home on a budget, the chances of 100k being enough is low. But it’s possible if certain conditions are present. They include:

1.  Availability of Land

If you’re planning to spend 100k on building a house, you should already have land for the property. If you don’t have land and plan to buy land out of the 100k, it’s unlikely to be enough for you to build a house. It’s not even enough to have land. It should be land that’s already suitable for construction.

That means it should be a residential lot. If you’re the one who has to develop the land to make it suitable for residential construction, then you’ll have to take the cost out of the 100k, and what’s left won’t likely be enough to build the house.

2.  Proximity to Utilities

The cost of connecting utility lines to the house is another reason that could make 100k not to be enough for building a house. If the land has gas, sewerage, and power systems nearby, connecting them to your newly built house will cost you much less. But if they’re far away, connecting your house to the grid will cost you more. If you decide not to connect your house to the grid, you’ll still spend a lot of money on alternatives.

3.  Skill and Experience 

Your skills will also determine the possibility of building a house for just 100k. If you’re planning to do something like this, you’ll have to be the general contractor. If you don’t have any experience with building, you can’t be the general contractor since you won’t be able to get the necessary permits and approvals for the construction. The other option would be to find someone who would willingly be your general contractor for free.

If you want to spend $100k on building a house, you should be ready to do all the back-breaking work.


Tips For Building a House With 100k

If you’re planning to spend just 100k on building a house housing, here are the things you should note:

1.  Prioritize Insulation

When building your home yourself, one mistake you shouldn’t make while trying to stay within budget is to go for low-quality insulation. It’ll cost you more to get good insulation in the long run. So, it’s better to bear the cost at that point. What makes it better to spend on insulation is that you’ll see the benefits immediately. Adequate insulation means that you’ll spend less on keeping your house warm in the long run. So, that means you can install a smaller HVAC system.

2.  Plan Your Space More Efficiently

When trying to build your home more efficiently, you should build homes on a budget. This is essential as it helps you to keep the costs low. For example, make your bedrooms small and other common areas in the house bigger. It’s also better to build a one-family bathroom that all the bedrooms will share than to build en-suite bathrooms.

3.  Go For Quality but Less Expensive Materials

Most people think that quality means expensive. This isn’t always so, and that applies in construction too. When trying to build a house with 100k, you can’t afford to spend much on materials. The best option is to go with cheap yet effective materials. Instead of tiles, go for acrylic, which is cheaper and faster to install.

You don’t need to spend thousands on cabinets and other features when it comes to your kitchens. Instead, use IKEA to get some of the things you need, and your carpenter can help you construct an inbuilt wardrobe and shelves when you need them. 

For Floor coverings, go for laminate floors, which might cost more initially but last longer. Also, make sure everything you’re building is based on the standard. That way, you can easily find what you need and will reduce wastage.

4.  Be Ready to Negotiate

If you want to build a house with 100k, you should get ready to negotiate everything. You’ll most likely be the one buying every material and talking to every tradesperson that you need. So, it’s important to have some experience with construction and be ready to negotiate. Any tradesperson you bring in on the work is only there to install something, and you only pay them for the installation. You have to buy everything yourself, and it’s necessary to get a discount on the smallest items.

Who do you need when building your own house?

Even if you have experience in construction and serve as a general contractor, you can’t do everything yourself. You’ll still need experts for some specialty jobs. They include:

  • Architect
  • Roofer
  • Plumber
  • Electrician
  • HVAC Installer
  • Carpenter.

In Conclusion

It’s possible to build a house for $100k. But it will be challenging and won’t even be possible in some locations. However, building your home yourself remains one of the best ways to save on becoming a homeowner. But be ready to do all the hard work yourself or with those who will do it for free.