How Much Profit Does A Builder Make On A New House. Building a house for profit is a task that requires some very important details. His profit will be lower as he has more volume so 10 to 15 while a custom home builder may do a cost plus build.
Larger jobs or those done using cost plus accounting in which the contractor is paid a margin over and above costs frequently carry a narrower profit margin sometimes as low as 3 to 4 percent. Of course that last house was after I read your book If I estimate markup properly I choose custom Lous comments show how to make a reasonable gross profit to pay your overhead and keep your business going through good and bad times. The higher net is typically for larger houses.
Ill give you a little peek behind that curtain.
Building a custom designed dream home will usually end up costing more than if you were to buy a new. A 15 mark-up on a job costing 200000 will yield a selling price of 230000A 15 margin on a job costing 200000 will yield a selling price of 235294. Building a house for profit is a task that requires some very important details. Higher margins-- When things go well profit margins tend to be rather high when building a spec house.
