Home Builders

home builders

How much profit do home builders make off of sold homes?

Hi everybody-

Over the past 15 years as a professional general contractor and builder in the Pacific Northwest, I have seen a huge change in the market. The actual cost of construction has gone way up, the cost of materials has gone up, and of course the regulations, permits, and System Development Charges have gone up, all eating into to the Value of a home. You can only sell a house for it's value in the market. Ten years ago, after paying my insurance, bonding and overhead, not including any payroll for myself, I was doing well to make about 10 percent on a house. Then factor in your time and your warranty of the home and 3 to 5 percent looks good.
Today, I am seeing everyone across the board expect home prices to drop by 10 to 15 percent over last year. I cannot afford to sell houses any more. I would have to pay people to buy a new house.

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Selecting The Right home builder

Once you have decided to buy a new house and even perhaps have it built for you. You will need to select location, financing and the builder you will use. It is a big decision and must be carfully handled so that you are happy and satisfied with the end result. Having a home built is expensive and you need to balance what you need with what you want so that the house is everything you imagined so that you can move happily into your new home instead of going into the poor house.

Selecting a Home builder is even more important than the financing and the location. The home builder's commmittment to quality will become evident as your new home ages no matter is the home is a modular, log, custom, or tract type housing. The builder decided on the quality level of the materials based on the price points of the final product, your home.

Of course, you cannot expect to see first rate top of the line products throughout a home that's being built to an affordable price point. Still the quality of the finished materials should be of good quality and be expected to give years of use. The builder who cuts corners on finished materials a customer can see has probably cut even more on the stuff that cannot be seen like insulation, proper sealing for drafts, and other energy efficient methods.

Buying a home form a cheap builder may seem like a good deal but once the real costs become known, it's to late to do anything about it. Instead of looking for the absolute cheapest price, look for the best value. The best value will offer the best product for the price and not just let the price determine the value.

About the Author

Abigail Franks writes on a variety of subjects which includes home, family and health. You can find more information on building your new home and finding the right builder at http://www.builder.fixituptoday.com

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