Complete Guide To Building A House In Colorado

How Much Does It Cost To Build A House In Colorado?

New homes built in Colorado will cost an average of $400,000. Right now, new homes are being built in the city of Denver between the prices of $275,000-$550,000. When compared to other large cities in the U.S. like San Jose, San Francisco and Chicago, the cost to build a home in Denver is relatively affordable. New homes in Colorado are comparable to new home prices in North Carolina, Pennsylvania and Virginia.

Cost Factors

There are many factors that go into building a house from scratch. The company you choose for the project is one of the biggest factors affecting the total bill. Make sure you have a budget in place before starting the project. Share the budget with prospective companies as you choose which one works best with your financial status.

These are three of the most important cost factors associated with building a house in Colorado:

1. Land
2. Materials
3. Project Time

Land

Land values will, of course, either increase or decrease the total price of the project. Other factors will play a role in determining costs, as well. These factors include how close your plot of land is to a sewer line. Does the surrounding vegetation pose any potential issues? Also, what municipal taxes and permit fees can you expect in the area?

Materials

As expected, different builders will charge differing amounts for materials used on the site. Costs will be determined by the quality of the materials and the builders’ rates. Keep in mind you can always change your requests after moving in. If you installed laminate flooring, but now want bamboo flooring, you can contact a different company to handle any remodels or renovations.

Project Time

Given the unique terrain in Colorado, the amount of time a house build takes can vary. The longer the process takes, the higher the costs will be.

Building A House In Colorado

No matter if you are buying your first home or relocating to the state of Colorado, you must learn about all the nuances of the area’s real estate. Follow these few steps on your journey toward homeownership. 

Find A Trusted Real Estate Agent

The most important step of the process is finding an experienced real estate agent that you trust. Make sure you talk to many agents to find the right one for your situation. Your agent needs to know the ins and outs of the Colorado market, including laws and practices. 

Budget

Check to see if there are any first-time home buyer programs available, if applicable. You also must understand that Colorado is considered a seller’s market right now. This means home sellers will typically have plenty of bids to choose from. 

Purchase Homeowners Insurance 

Due to uncommon weather events, home buyers should be prepared to pay higher homeowners insurance premiums. You will need flood insurance if you live in an at-risk area, as well. 

Steps To Building A House In Colorado

Use these steps as your guide to buying a home.

Step 1. Save For Down Payment

You may need a minimum down payment of 3-5%, depending on the lender and type of loan. In order to avoid paying private mortgage insurances, most mortgages will need 20% down.

Step 2. Mortgage Approval

Just like a real estate agent, find a mortgage lender you want to work with. The lender will gather your information and decide how much to lend to you. 

Step 3. Decide What You Need In A House

This is the most important step of the home buying process. You need to decide what you need in a house, want in a house and what could be considered a dealbreaker. 

When To Buy A House In Colorado

Since much of the state is covered in snow and enduring colder temperatures throughout the winter, the prime real estate season in the spring is quite short. The housing market begins to flood from March through May, with the most competition found during these months. 

Does that mean spring is the best time to buy in Colorado? No, the suggestion is to try to wait until the summer months. At this point, homeowners that did not sell their homes during the spring will oftentimes lower their asking prices. You’ll want to buy during the summer and be settled in your home before the unpredictable weather strikes in the winter.