Cost Per Square Foot
What Does “Cost Per Square Foot” Really Mean When Building a Home in Vermont?
If you’ve started researching what it costs to build a custom home in Vermont, you’ve probably seen a wide range of numbers. One builder might say $400 a square foot. Another says $600. That’s a big difference—and it can leave you wondering what those numbers actually mean.
The truth is that “cost per square foot” can mean a lot of different things. It’s a shorthand builders use as a quick way to determine ballpark costs, but what’s included in that number can vary dramatically. Understanding how it’s calculated—and what affects it—will give you a clearer picture of what you’ll really spend.
The Role of Process in Cost
In Vermont, most builders work on a time and materials (T&M) basis. It’s important to understand what your builders markup is (15%, 20%, etc) as well as what exactly gets marked up (subcontractor invoices, materials, etc) and what in-house labor is billed at (for example, $80, $100, or more per hour). These details can have a major impact on square footage pricing so understanding the builder’s markup and billing practices is key to comparing “apples to apples.”
Square-foot pricing also reflects a builder’s process. A structured system means fewer delays, clearer decisions, and better coordination. That efficiency reduces wasted time and costly mistakes—helping us deliver a high level of craftsmanship for less overall cost than builders who work more loosely.
What’s Included (and What’s Not)
When comparing builders, it’s worth asking: What does your square-foot number actually cover?
Questions to Ask About Square-Foot Pricing
1. What exactly is included in your square-foot number?
At LBC, our square-foot pricing includes all the essentials that make your home complete — cabinetry and built-ins, a fireplace, generator, decks and porches, and allowances for finishes. Every builder defines their square-foot costs differently, so it’s important to ask what’s included before you compare numbers.
2. What’s not included that I should budget for separately?
Square-foot pricing typically doesn’t cover site work, landscaping, design fees, appliances, or permits, so you’ll want to budget for those separately. Builders vary in what they exclude, so it’s smart to confirm exactly what won’t be included in their number.
3. How do site conditions affect this number?
Site conditions can have a big impact on overall cost. Factors like slopes, ledge, driveway length, septic and well requirements, and utility connections all affect the budget beyond the square-foot number. Because every property is unique, it’s important to ask how a builder accounts for these conditions in their pricing.
4. What systems are standard in your homes?
Our homes come with well-thought-out systems, including insulation, HVAC, ventilation, electrical service, and solar readiness. Since each builder has their own definition of “standard,” it’s worth asking for specifics so you know exactly what’s included.
5. What allowances are built in - and are they realistic?
We include allowances for key features like kitchens and baths, flooring, fireplaces, and stairs—and we make sure they’re realistic for the level of quality our clients expect. Allowances can vary widely between builders, so it’s important to confirm that the budgets align with your vision.
6. How do you keep the project on budget once construction begins?
We use a clear process, detailed tracking, and communication tools like our Monday.com project management software to keep projects on budget once construction begins. Different builders manage costs in different ways, so be sure to ask how they monitor spending and keep clients informed.
What Drives the Number Up or Down
Even with the same builder, the square-foot cost isn’t identical for every home. Factors that influence the number include:
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Design complexity: Simple rooflines and rectangular layouts cost less; multiple wings, roof pitches, and details add cost.
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Site conditions: Building on a steep slope, ledge, or with tricky access adds expense.
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Level of finishes: Wide-plank flooring, custom millwork, and high-end appliances will increase the number compared to more standard choices.
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Size of the home: Larger homes sometimes benefit from economies of scale, but expansive square footage with high-end details can push costs up.
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Mechanical systems & efficiency: Choices like dual-fuel HVAC, HRV ventilation, and high insulation levels add upfront cost but save money long term.
Bottom Line
Cost per square foot is a helpful starting point, but it’s not the full story. To truly understand what you’ll spend, look at what’s included, what factors influence the number, and how your builder manages the process.
If you’re thinking about building in southern Vermont, we’re always glad to walk through what goes into our pricing and how it compares. That way, you can make decisions with confidence—and with a clearer picture of what your future home will really cost.
Ready to Build Your Dream Home?
We would love to start a discussion in your journey to the home of your dreams.