I am looking into starting my own home building business but am trying to work with some numbers, specifically the average profit that self employed home builders can expect to make.
For example, if you sell a home for £200,000 how much was spent on the actual construction of the home and thus how much profit does the builder accrue?
Also how muhc would you have to spend for the basic electric, plumbing gas ect.
Profit can be great, could be anywhere between 10k to 100k or more.. No straight forward answer, depends on the size of the home, the area, the detail of the home, etc… But this market is real tough for home builders, many sell at cost just to get rid of the debt. And many have a lot of construction sites on hold, they just can’t sell the homes they already built so other projects are sitting around unfinished.
Also you need to consider making a name for yourself, sad fact is not many people are willing to hire a no-namer compay to build their home. And you don’t likely have a name in the business, if you did you’d know how estimates and profit works in the construction world.. No disrespect, just trying to help out.. good luck
July 11th, 2010 at 5:29 pm
Just a note:
Home prices dropped 10% in the passed 6 months in the US.
It is getting more and more expensive to build a home and less profitable to sell it.
Do your research in the market you will be pursuing first.
This housing slump could last for years to come.
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References :
July 11th, 2010 at 6:04 pm
Profit can be great, could be anywhere between 10k to 100k or more.. No straight forward answer, depends on the size of the home, the area, the detail of the home, etc… But this market is real tough for home builders, many sell at cost just to get rid of the debt. And many have a lot of construction sites on hold, they just can’t sell the homes they already built so other projects are sitting around unfinished.
Also you need to consider making a name for yourself, sad fact is not many people are willing to hire a no-namer compay to build their home. And you don’t likely have a name in the business, if you did you’d know how estimates and profit works in the construction world.. No disrespect, just trying to help out.. good luck
References :