Barndominiums can combine a home, garage, workshop and storage into one structure, but the advertised price can be misleading. The building itself is only part of the project. If you’re considering a barndominium on rural land, here’s what can affect the actual cost and what you should figure out before buying property or signing a construction contract.
What Does a Barndominium Cost?
There isn’t one reliable price per square foot. A basic shell will cost far less than a finished home, and Midwest construction costs vary by location, contractor, materials and site conditions. A better way to estimate the project is to separate the costs into:
Land + site preparation + foundation + shell + interior + utilities + driveway + permits + contingency
Get quotes based on the finished project, not just the shell. A low shell price can become expensive once insulation, HVAC, plumbing, electrical, cabinets, flooring and other finishes are added.
The Land Can Change Your Budget
The property you build on can have a major effect on construction costs. A relatively flat, open homesite with good access may require minimal preparation. A wooded or steep property could require extensive clearing, grading, drainage work and a longer driveway. Before buying land, determine where the building will go and estimate the cost of getting construction equipment there.
Tip: Have a contractor or excavator look at the property before you buy if possible. Spending money on a site evaluation can save you from buying inexpensive land that costs a fortune to build on.
Septic and Well Costs Are Easy to Overlook
If you’re building outside a municipal utility system, you’ll likely need to account for water and wastewater. A private well isn’t simply a matter of drilling a hole. Location, depth, water availability and local requirements can all affect the project. The same applies to septic. Soil conditions determine what type of system may be possible and where it can be installed.
Important: Don’t buy land assuming a septic system will work just because there are houses nearby. Have the property evaluated before you commit to a homesite.
Your Driveway Is Part of the Construction Budget
A barndominium needs more than a driveway for your personal vehicles. Construction trucks, concrete deliveries and heavy equipment need reliable access. A long driveway can require significant amounts of gravel, grading, culverts and drainage work. Pay particular attention to water movement. A driveway crossing a drainage path may require a properly sized culvert or other drainage solution.
It’s cheaper to solve the drainage problem before the driveway is built than after every major rain.
Insulation Is Especially Important
A metal building can become extremely hot in summer and cold in winter if it’s poorly insulated. Don’t treat insulation as an upgrade to add later.
Ask your builder:
- What insulation system is being used?
- What R-values are included?
- How will the walls and roof be insulated?
- How will air leakage be controlled?
- Are there thermal bridges in the metal framing?
Good insulation and air sealing can reduce heating and cooling costs for years.
Think About the Shop Before Designing the House
One of the biggest advantages of a barndominium is the large attached shop or garage. But people often design the living space first and squeeze the shop around it. Instead, determine what the shop needs to accommodate.
Measure your:
- Tractors
- Trucks
- Trailers
- ATVs
- Boats
- Hunting equipment
- Workshop tools
Then plan for the equipment you may own in five or ten years. Also consider door height and width. Replacing an undersized overhead door later can be expensive and may require structural changes.
Concrete Is More Than a Slab
If you’re putting heavy equipment in the shop, tell your builder before the concrete is designed. A floor intended for normal residential use may not be designed for the same loads as one supporting heavy equipment. You may also want to plan for floor drains, hose bibs, additional electrical outlets and compressed-air lines before the slab is poured. Once the concrete is finished, adding these features becomes much harder.
Plan Electrical Service Around the Shop
Another common mistake is designing the electrical system around the house and forgetting the shop. If you plan to use welders, compressors, lifts, freezers, large tools or other high-demand equipment, tell the electrician before construction. Upgrading electrical service or running additional circuits after the building is complete can be expensive.
Don’t Put Every Utility Underground Without a Plan
Underground utilities can provide a cleaner appearance, but long utility runs can become expensive on rural properties. If your building site is far from the road or existing infrastructure, get a utility plan before choosing the homesite. The cheapest place to build isn’t always the cheapest place to connect.
Financing Can Be Different
A barndominium isn’t always treated exactly like a conventional house by lenders. Construction loans, land loans and permanent financing can have different requirements. Some lenders may have specific requirements regarding the percentage of the structure that must be residential or how the property is classified. Talk to your lender before buying the land or finalizing plans. Make sure they will finance the type of structure you’re planning, not simply assume it qualifies as a traditional home.
Insurance Can Also Require Extra Research
Insurance companies may have different underwriting requirements for barndominiums, particularly when a large portion of the building is used as a workshop, garage or agricultural space. Before construction, ask an insurer how the structure will be classified and whether there are requirements for things such as wood-burning stoves, detached structures, equipment or commercial use. Getting this information early can prevent surprises after construction.
Build for the Midwest Climate
A barndominium has to handle more than normal temperature swings. Your design should account for:
- Heavy snow
- Strong winds
- Severe thunderstorms
- Ice
- Freeze-thaw cycles
- Moisture
Your builder and engineer should design the structure according to the applicable local building codes and site conditions. Pay particular attention to roof design, drainage and water management around the foundation.
Leave Room in the Budget for the Unexpected
Don’t spend the entire budget on the structure. Rural construction can uncover unexpected expenses involving soil, drainage, utilities, material delivery or site work. A contingency fund gives you room to handle those problems without compromising important parts of the project.
The Biggest Cost-Saving Advice
Choose the right property before you choose the floor plan. A cheaper piece of land isn’t necessarily the cheaper project.
Before buying, determine:
- Where the building can go
- Whether the soil supports septic
- How you’ll get water
- How far utilities must travel
- How much driveway you’ll need
- How much clearing and grading is required
- Whether construction equipment can access the site
- Whether local rules allow the structure you want
- Whether your lender will finance it
- Whether your insurance company will cover it
Once those questions are answered, you can design the barndominium around the property instead of trying to force the property to work around your plans.