When building your home, you want to be sure you are working with professionals who know how to bring your vision to life while working within your budget.

The expert project managers at Top Home Builders, have been helping homeowners across the bay area create spaces that are functional and fit the lifestyle needs of their clients for many years.

Before beginning your home construction project, it’s important to discuss your ideas with your project manager to begin putting together a budget. This will guide you through the entire building process and help both you and your builder define the scope of work from foundation to final touches.

Home Building Cost Breakdown

The average price for a new home sold in the United States in March was $349,400, making the prospect of building a custom home better than ever. But how is that cost broken down and how can you ensure you are getting the most value out of your money?

Home Building Cost

Before you can put a shovel in the ground, you need to first purchase land. This land may have a home already on it that you plan on tearing down or it could be vacant. Your real estate agent or developer will be able to help you find the right lot size for the type of home you want to build.

Depending on your location and your building plans, you can expect to pay anywhere from $3,000 to $150,000 for a moderately priced home. Homeowners requiring larger lots can expect to pay more.

What Can Affect The Price of My New Custom Home Build?

Similar to when you purchase a new home, building a home from scratch can vary based on several factors.

  • Location – If you are building a new home in a remote area or an up-and-coming area, you may notice an increase in the cost of materials. Plan your budget accordingly. If you feel you can get the same enjoyment from a new custom build a few miles away from where you are interested in living, speak to your project manager who can create a cost breakdown on various locations.
New Custom Home Build by Top Home Builders
  • Site Prep – Most new home builds require some preparation to the site before work can begin. This includes any clearing of debris, demolition of existing buildings and putting in services.
  • Size – The size of your home is probably the biggest factor in determining how much your new custom home will cost. The larger your home, the more materials, fixtures and prep work will be required. Your project manager can help you put together a budget that reflects the important elements you want to include so that you can decide where you want to invest more and where you want to save.
Custom Home Blueprint
  • Cost of Materials – The cost of building materials is always changing. Supply and demand determine how much materials will cost. As of early 2021, the biggest challenge for home builders has been a shortage of lumber. As the budget for your home is being defined, your design team will be able to provide you with an update on what materials are in high demand and if necessary provide alternatives. Top Home Builders always keeps you informed on the status of your project and is committed to completing your new home on time.
Custom Home Services

What Is the Process For Building a New Home?

Before we put a shovel in the ground, your project manager will outline the schedule and budget for your project. This includes any work that needs to be completed before we begin digging such as demolition and putting in site services.

Below is a breakdown of the entire building process so you can plan your timeline and budget.

New Home Framing in Progress

Prep Work – Site Preparation

Now that the land has been purchased, it is time to prepare it for building. This may require demolishing existing buildings and excavating the land. You may also be required to add services to the property like hydro and sewer hook-up.

Floor Plans

While your site is being prepared, you will likely begin working on and modifying your floor plans. Your plans will be developed by an architectural engineer who will review your ideas and incorporate them into a blueprint and 3D rendering. These services cost between $2,000 and $10,000.

If you are working off an existing blueprint or design that only requires minor modification, then you can use the services of a draftsperson who usually charges a fee of $1,500 to $2,000.

photo of bathroom blueprint - bathroom remodeling services

Building Your Dream

Home Addition in Progress


Now that the designs are completed and the land is ready, the building can begin. Foundation costs are usually the first expense of building your home. Depending on the size and how you plan on using the lower level of your home will determine the cost of the foundation.

The most common types of foundations are

  • Concrete slab
  • Crawl Space
  • Basement


Once the foundation is complete, the construction crew can begin setting up the framing. This will give you a better idea of the scale and look of your home. Frame costs run can run upward of $20,000 depending on the size of your home.

Custom Home Framing by Top Home Builders
Exterior Renovation Services

Exterior Finishes

When the framing is complete, the exterior finishes can be added. The cost for these can vary greatly spending on the material you have chosen.

  • Brick
  • Siding
  • Roof
  • Windows
  • Doors

Your project manager will be able to help you find the right materials and finishes for your home within your budget. It is important to determine these materials at the beginning of the planning process to create a more accurate cost outline.

As the exterior is being completed, the construction team may move onto the interior features including utilities like plumbing, HVAC system, and gas hook up.

Electrical hook up can cost upward of $20,000.

HVAC Systems run between $1,500 and $13,000 depending on whether you choose duct or ductless systems.

Plumbing installation costs run between $1,500 and $20,000 depending on the number of bathrooms and kitchen services in your home.

Custom Living Room with Crown Moulding Trim and Build in Fireplace - Home Renovation San Jose
Amazing Family Room Design Toronto

Interior Finishes

The interior of your home is where your style and personality shine. These finishes include insulation and drywall as well as paint, flooring, cabinetry, finishes, and accents.

The cost of interior finishes depends on the materials you choose and can vary in price. Most homeowners can expect to spend upwards of $100,000 on quality materials that will last a long time.

Additional Costs

Homeowners should always factor an extra 10% in cost overruns into their budgets. This will allow for changes in the cost of goods, shipping and delivery costs, and changes in material availability.

Exterior Custom Deck in The Backyard

At Top Home Builders, we take pride in being an expert home remodeler that San Jose residents can rely on. We are also more than just a construction company – we provide our customers with exceptional home remodeling services to suit their every need. We’re happy to serve many locations across California including Fremont, Hayward, Milpitas, Mountain View, Palo Alto, Pleasanton, Redwood City, San Bruno, San Mateo, Santa Clara, Sunnyvale, Atherton, Cupertino, San Carlos, Belmont, Saratoga and the rest of the Bay Area.

Building a new home is a time of creativity and fun, so as long as you budget well, you should be able to move in without worrying about breaking the bank.