COST SNAPSHOT

   Vertical Construction Costs

+ Horizontal Construction Costs

+ Transaction Costs  

= Total Purchase Price

VERTICAL CONSTRUCTION
This is the price for construction a new home. Costs include everything from the foundation up (e.g. foundation, plumbing, electrical, framing, roof, doors, windows, flooring, lighting, appliances, and related construction fees, etc.). 

HORIZONTAL CONSTRUCTION
refers to the cost of land (e.g. new home site (aka lot, aka parcel), site prep/dirt work, rock walls, sidewalks, landscaping, etc.).  While calculating a rough estimate of a project use the cost of the new home site for the horizontal construction figure.

VARIABLE TRANSACTION COSTS

Transaction Costs include gross receipts taxes, closing fees, finance fees, insurance fees, and commissions paid to real estate brokers if applicable.