How much profit does a homebuilder expect/need to make from a (example) $100,000 home being built.?
395796
On average about 20 to 25%. It can vary depending on the contract, such as who takes the risk for what. \n\nThe size and complexity of the house, the availability of sub-contractors, types of material, the degree of definition by the buyer, the demand for housing and weather conditions are some of the factors that can either cause the builder to add a larger or smaller "profit" margin to the job.
235547
im thinking starting value at $100k
1152899
30 - 75 dollars per hour, if you know your business.  Otherwise see if you can take a percentage of profits.
634179
Never offer the full asking price. I would start out offering 10,000 less than they are asking. They'll probably negotiate with you till you come to a happy medium. Happy house buying!
54971
You need to find a market where this type of home would be in demand.  Consult with some real estate agents to find out if these types of homes are moving, and what they're selling for.  Then you need to assess whether or not you can build them at a low enough price to allow you profit.\n\nIf you're a builder, getting started starts with buying land.\n\nIf you're not, you'll need to hire one, and add that to your planned expenses.
1057452
I have been in this business for five years and I made 250k last year. The year before that was 70k. The other three years were at about 25-35k. It may take you some time but it is well worth it.
872902
If you are good at managing people and have spare time, you can be your own general contractor. You can save up to $100,000 by cutting out the middleman and buying your own materials. \n\nAnother alternative is to buy a pre-built home. The large builders now have homes made in a factory and shipped to the site where they are put together. They don't look like "mobile" homes; you'd never know they weren't built like any other home.
1000928
sell off enough of it to pay for building a big house like i have always wanted... then i would charge people to come hunt the remainder of my land... i have a friend with 100 acres who does this and makes 13grand a year from just that!\n\nsusan
159260
It really depends on the area. Usually it will cost less if you buy the land, but not always the case.\n\nFor instance, in Orland you could get about twice the size of house if you bought the land and built the house. The reason was they were not being built inside of a community and the builders were not adding to the cost of the land to make more money.\n\nJust be careful and make sure to get a really good contractor to take care of everything for you.
619374
I wouldn't For Sale by Owner if I were you (unless you happen to be a license Realtor).  For Sale by Owner's only work 18% of the time - most just prolong the time it takes to sell their home, then end up hiring a Realtor anyways.
485384
Network like crazy.  Try and go to bridal shows.   Talk to builders in your area to see if they'd be willing to let you sell their houses (perhaps at a reduced rate).   Work friend and relatives to help you out.
244451
Sales- The larger the item the bigger the commission. For Instance, if you were in Real Estate and sold a $300,000 home and made 3%(your cut) you would make $9k> But of course that is working for someone else. So do the next best thing. Mortgage Broker- Make about 2% on every loan
1056741
Well that depends greatly. First of all, I assume you are talking about residential real estate agents, not commercial.  The average where I live is 6%, however some will work for as little as 4%.  If you are using the same agent to sell a house and buy a new one, you can often negotiate 3% on each deal to save you some money.
174507
I'd pay a carpenter from philedelphia with no experience approximately 10 bucks to not do any work on my home, buisness or community property.\n\nTranslation:\nBe happy with what you get, learn the trade a few years, and then you'll be worth something.
411726
(CROSSCUT – February 2003)\nBUILDING BIG\n112,000 SQ. FT., 104 TRUCK, CREW OF 50 AS PIONEER LOG HOMES BUILDS\nTHE WESTERN HEMISPHERE’S LARGEST LOG STRUCTURE.\nThe age-old adage of “being in the right place at the right time” certainly holds\ntrue for a Williams Lake log homebuilding company. The right place was a home show in\nDenver, Colorado, and the right time was the spring of 1999. Add the right customer into\nthe equation and you have the recipe for a project that resulted in the construction of a\n112,000 square foot log home.\n“Our client came by our booth at the Denver home show, met with my brother,\nBryan Reid Sr., and he liked what he saw,” explains Andre Chevigny, co-owner and\ngeneral manager of the family business. “He had been looking for somebody to build his\nranch house for over five years, but he just hadn’t found a company that could offer the\nright combination of product quality, construction knowledge and attitude. He had been\ntold by a number of other companies that it was not possible to build the home he\nenvisioned, but almost immediately after meeting the client at the home show, we started\nworking on the plans.”\nThe project initially started out as a somewhat smaller venture for Pioneer as the\nclient, who wishes to remain anonymous, awarded the company the contract to build a\n27,000 square ft addition to an existing structure on their 7,000 acre ranch in the state or\nColorado.\nThe 27,000 square ft project was started in May 1999 and was delivered to the\nclient in October the same year. “After delivery of the log shell package and the related\nroof package, there was no turning back for the customer,” says Chevigny. “Once our\nproduct arrived onsite, our client decided that he could not live with the existing home so\nwe started building the new section, an 85,000 square foot structure, that would fit with\nthe new 27,000 square foot addition to the original home.”\nBoth sections of the project were constructed at Pioneer’s yard in Williams Lake.\nThey were built to the plans and specifications as outlined by Williams Lake designer and\narchitect Don Gesinger, who, worked closely with the client, Chevigny and Pioneer’s\nmaster craftsman, Peter Arnold. Chevigny remembers every 2 – 3 days there was another\ndetail or challenge to deal with. This structure presented opportunities for Pioneer to push\nthe architectural and engineering envelopes for hand crafted log construction to new\nlevels of intricacy.\nThe 85,000 square foot structure was started in May 2001. As the delivery date in\nJune 2002 came closer, the 50-member Williams Lake crew ramped up their production\nworking from dawn to dusk for 37 days straight in April to complete the intricate log\nwork on schedule. Each individual component of the home was then tagged and\nnumbered then dismantled and loaded onto 85 trucks that transported Pioneer’s work to\nthe Colorado home site in June 2002.\nBetween the two phases (27,000 square ft and 85,000 sq ft) a total of 104\ntruckloads of handcrafted log components were shipped. Once all the trucks arrived in\nColorado, local crews consisting of 25 US workers, under the supervision of Bryan Reid\nSr., Peter Arnold, Chuck Moore, and Carsten Heyer completed the re-assembly of the log\npackage. The roof is currently being put on the structure and then the interior finishing\nwill commence, a process that Chevigny says will take three to four years.\nAccording to Chevigny, the home is not only the largest log home Pioneer has\never built, but it is also the largest log home ever built in the Western Hemisphere. Logs\nutilized in the home include three very large cedar logs. Two of the logs each supports\none of the two subsection centers of the home. These two logs are between 700 and 750\nyears old and each tree weighs approximately 26,000lbs. And is approximately 6.5 feet\nwide by 60 ft long. The third cedar log, which Chevigny affectionately calls “The Spec
834094
I am amazed at some of the responses:\n\n1. "Its' pretty rare to get more than 90% of the property's value."  This is plain wrong! It is rare to get financing greater than 100% of loan-to-value, but it's very common to get financing for 95%, 97%, and 100%.\n\n2. "It has to appraise out at $200,000 [to get a loan for $200,000]." This quote needs clarification. If the agreed upon sales price is $185,000, conforming/conventional (FNMA) lenders will loan a max of $185,000.  Conforming lenders will loan on the LESSER of the appraised value or agreed upon sales price.  There may be some non-conforming lenders that will lender on the greater of the two, but you will pay through the nose for a high rate.\n\n*** Guys, if you haven't worked in the mortgage business, please be very careful as to the information you pass along.
387378
The first persons answer is completly wrong you will find a home from 1500 sq ft for about brand new for about 275 000\nlarger you go the more money for it so thats where it starts Im building one right now for 390 000 at 2240 sq ft