The primary factors in the cost of building a home include the size of the home, the architecture style, site preparation, unforeseen problems and additional market conditions, according to About.com. Different builders and contractors offer the same services for varied prices and quality.
The size of the home is the largest factor in pricing a new house's construction value, according to About.com. The larger the location, the less each square foot costs, and some rooms are cheaper per square foot than other rooms.
The architecture style also greatly impacts the value of the home. Square rooms and sharp angles cost much less than unique shapes and rounded corners. Putting a domed roof on the house also saves money due to labor costs. A second story is a great way to double the size without doubling the price.
Cost overruns are very common when working with contractors, says About.com. Plan for a finished project, which runs around 10 percent more than the quoted price.
The final common problem with predicting the final price of building a home is market conditions and inflation. This is often impossible to foresee, and typically increases the production price of the project from three to six percent per year.