There is also a huge spread between what the raw costs are for the subs to perform the specific building task – foundation, framing, roofing, electrical, plumbing etc, and what a GC will charge you as your “building cost”. I’ve heard GC’s fees range from 10 to 30% of the cost, but there are different methods for them to charge you – flat rate, cost plus, etc.

Using low end finishings – Vinyl floor not hardwood, laminate counters not granite, etc, I had a brand new house build in Colorado for $60/sq foot total. $298K total with 3450 sq ft finished and 1600 sq ft unfinished basement, and that included the land which was assessed at around $15K. So, subtracting $15K for the land and the builders profit, it probably cost under $50/sq ft to build this house. And we had a lot of floor plan customizations which added $30K to our final price… The same model sold for $275K with the same dimensions later on. 4950 total sq ft divided by $275K = $55/sq ft.

So it is possible to build a house for well under $100/ sqft, but that won’t include land. That’s the rub here in Cali, there are no lots for $15K.