what's the actual cost of building the average home when you count materials and man hours, and how much profi

Question

how much profit is made for people who sell new homes?

Answer 1

It can vary from area to area. In the US, it can run from around 100-150 dollar per square foot to build a new house depending on he house and the quality of finish you want (hardwood floors or budget carpet? Laminate counters or granite?). A general contractor in your area can give you a better idea of how much it runs in your area.

Usually, when a home is being sold new it's being sold by the same company that built it so the profit is similar to what they would make building home for someone else.

Answer 2

Oh my, what a loaded question!

1. Cost of building a home can be averaged--start at $100 per square foot for a basic home, and go up from there for all upgrades (hardwood floors, solid surface or stone counters, upgrade cabinetry, hardwood trim, etc.).
2. Building a home is one thing. When you sell it, in includes the land it sits on. Land is the variable that makes home prices vary so wildly from city to city and state to state.
3. Profit is never a guarantee. So, if you are an experienced builder and you know how much labor it will take to build a home, that's one thing. But, if you are new to it, the home will only be worth what the market will bear, even if the time you put into it makes you want to ask more for the selling price. If I were an experienced builder, I would hope to make 10% or more on each home.

Since you are asking the question, I would guess that you are a DIYer, new to this type of project. You need to make sure that you are in a position, financially, to be able to learn from mistakes from the first go around!

Answer 3

There really is no average costs. One answer makes me smile though. I would guess from the work we've done through time about $125.00 a square foot but, this changes with what a person requires. Wall thickness for electrical or gas, the type of heat, water pipes, heating, everything is a factor so, there is no average.
Profit is the same. One friend told be within six months they tripled their buying price, I smiled at them because they're trying to make themselves feel better for selling. If this happen you'd have a market run on houses to "triple" your buying price, it just doesn't happen.

What you can buy for $500,000.00 in Florida won't let you in, in Washington D.C. or could get you a very nice home in the Midwest and they wouldn't look at you in California. Some areas, these are slum prices so, go from there.

Answer 4

Both 1 & 2 give you some clues, but I wonder if this is a rhetorical Q or not.

"Average" is relative to multiple factors, IE: Location, and so there may be no true, fair examples. I live in Central FL, where all housing is expensive, but I might build 2 identical homes, one inland, and one on the Coast and double or more, my profit with the beach house.

A cost of $150 a sq. ft. is likely a current average, which in this example might equate to $150,000 for a 1000 sq. ft. home. That seems to be extreme, but given the average size of new construction at 1200 sq. ft. or more you can calculate cost to finish.

Profit, at the moment, seems to be what the market will bear, and in my area a 2000 sq. ft. house can sell for $300,000 plus, not even NEW.

Answer 2 gives you an example of a Realtors commission, which relates to a selling price, not cost to build or profit to an owner. and in my area commissions are between 8 and 9 %.

Large scale builders/corporations certainly can "build" as inexpensively as possible, given their capital, sources and resources, and very likely selecting SUBS as cheap as they can get them. A DIY may not be able to reap profits that compare.

Steven Wolf

Answer 5

The average american home cost $72.00 per sq ft. So times that by the homes total square footage plus calculate land, septic, sewer, or well. plus any landscaping, and pavement.
add that all up and you have the total.

The profit of selling the home is 6-7% for a real estate agent.

Answer 6

I do not know how anyone can really answer your question! What is AVERAGE? For you it might be 1800 sq feet. I look at average as 2400 sq feet. How many bathrooms? One story house or two? Single car garage or two car? Garage attached or detached? HVAC system choices: boiler, natural gas, electirc heat, propane? How many windows and what sizes?
I could go on and on. How about getting more specific with a question?
How much profit? That is really another question.