Why Price Per Square Foot Doesn’t Work in Custom Home Building
It's the end of the year, which means this age-old question is going to start coming in just a few short weeks. The calls will ring in: "How much does it cost to build a custom home?"
And every single time, it's almost like I can hear Mark's head falling to the floor and the big breath in—knowing he's about to frustrate and possibly confuse the caller. Because the caller is just doing what the industry told them they should do: call and get quotes. Free estimates. That's what the construction industry pushes.
And the hard truth is there's a big difference between looking for a new home and building a custom home—or even building a production-based home.
When you start exploring the idea of building a custom home, one of the first questions you're likely to ask is:
"What's your price per square foot?"
And it makes sense—it's what everyone asks. The industry floats these terms like the dairy industry sports milk being for strong bones. It's positioning, not truth.
But here's the truth: That question doesn't actually work in the custom home world.
And if you rely on it, you're probably going to be disappointed later. Or honestly? Angry, frustrated, and no closer to your goal of a new home.
Let's break down why.
Custom vs. Production: Two Very Different Worlds
Production builders can give you a price per square foot because they're building something they've already designed.
They build it the same way, over and over. It's streamlined, efficient, and offers less customization—which is fine if that's what you want.
Custom builders are completely different.
We build what you want. Not what we already have.
And because of that, there's no standard square foot price that can honestly or accurately be given without first knowing the full scope of what you're asking us to create.
Think of It Like Fashion
Imagine calling a fashion designer and saying: "I'd like to buy a shirt—how much do you charge per square inch of fabric?"
It sounds ridiculous, right?
Because the price of that shirt depends on everything:
What fabric you choose
How detailed the design is
How many fittings it takes
Whether it's custom-sewn, tailored, printed, or embroidered
Same with homes.
Or if you're more of a "man's man," think of a truck. If I called the industry and said I want a "truck," well—the obvious same questions follow. Because selections make the price. Not the industry's standards, which are never really that standard.
Tile selection, roof pitch, cabinetry, windows, electrical layout, smart home tech, flooring, trim—it all changes your cost. Every square foot is not created equal.
And that's not even talking about what the lot itself may need.
The Lot: The Biggest Hidden Variable
Here's the huge hole in the industry's understanding of custom home building: The lot you're putting that house on is NOT included in that price per square foot. Because how could it be?
Every lot is different. Some need minimal prep. Others need extensive site work—utilities, sanitary systems, grading, drainage, foundation prep. That can add $20,000 to $200,000+ to your project, depending on what you're working with.
If you're working with a production builder, it's vital you understand what's actually included in that price per square foot. Because the lot itself—the utilities it needs, the sanitary options for it, the prep to build on it—is typically left out.
Which again skews the entire project when it comes to real numbers.
This is why "price per square foot" is meaningless without knowing:
What's included in the house itself
What's included (or excluded) for the lot
What site work is required
What utilities are available
What permits and inspections cost
What It Actually Takes to Price a Custom Home
If you're truly serious about building a custom home, here's what you need to be ready for:
~1 month+ of collaborative work
$5,000 in design, drafting, and estimating
Plus the cost of buying plans from an architect or online supplier
40+ hours of team effort to create your full build plan on paper
And here's the thing: If you can't invest $5,000 upfront, you're not ready to build custom.
That's not gatekeeping. That's honesty.
This fee isn't a penalty—it's the entry price to the custom home game. It's the cost of doing the real work to understand what you actually want and what it actually costs.
We've seen too many people try to skip this step. They want a "free estimate." They want to know the price before they know the scope. And then they're shocked when the actual cost doesn't match their guess.
I've sat with people who discovered this mid-project—and trust me, none of them were happy.
The $5,000 filters out the guessing and avoids the anger and resentment that builds when you find out the true cost. It separates the people who are serious from the people who are just exploring. And more importantly, it sets those who are serious up for a totally different home, build, and experience.
And frankly? That's healthy for everyone.
You get clarity. We get commitment. No one wastes anyone's time.
Even then—budget refinements happen. Why? Because standing inside the real space changes how you feel.
So… Should You Build Custom?
Custom homes are amazing. My husband and I are building one right now.
They're yours, through and through. No cookie-cutter layouts. No compromises.
But they're not for everyone—and they come with a different process. Different pressure. Different presence. Different financial positioning.
If you want a budget you can trust, you need a builder who's willing to walk with you through the work that creates it.
If you're calling around asking, "What's your cost per square foot?"
Just know—that number is nothing more than a guess.
Here's What You Should Ask Instead:
Will you help me create a plan I can afford before we build?
What does your design and estimating process look like?
How do you help homeowners stay on budget once we start?
At Landmark, we build homes with you—not for you.
If you're looking for a team that knows how to turn vision into structure (without the guessing game), we'd love to talk.
One More Thing
If you're trying to build because the cost to buy isn't making you happy, that's not the right motivator. Because people who are truly built to build custom homes understand that a vision like this takes mapping, investment, and time. These things aren't settled in a phone call—they're built in collaboration and planning.
Before you make that call, explore what custom home building actually looks like. We've designed a Custom Home Build Master Class that gives you a field view of the entire process—what goes into it, what to expect, and whether you're truly ready to build.
It's not a sales pitch. It's an education. Because the right decision starts with understanding what you're actually signing up for.
If that resonates with you, we're ready to talk.
- Cassie
