# On average,, how much do builders charge to build a house?



## Travis77

Just wondering what builders charge per sqft to build a house,,,, how much goes for materials,,, payout for labor,,, and proffit the builder gets at the final sale?


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## Joasis

And what kind of average house are we going to discuss? Slab or crawl space, basement, split level? Over 1250 sq/ft? Over 3000? I can build a small spec home for 60 a ft easily...but there won't be any crown mouldings.


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## Travis77

lets say just a crawl space house,, how much would it cost you to build say a 2000 sqft home (labor+materials) and then how much would you sell it for,,, just looking for some average sqft pricing with different options. In other words how much do you add on to the sqft price when it comes time to sell for your own proffit? I'm gettin ready to start my first spec and need to learn a few things first.


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## Joasis

I don't want to rain on your parade, but have you gave serious thought to what you are about to do? You sound more like a potential HO checking what a spec home cost, as opposed to a builder looking to construct one.

First, material prices vary from region to region, but on average, a home you are thinking about would have a material cost, depending on trim and cabinets, of $32 on up a sq/ft. By the time you do the mechanicals and where you charge yourself the going rates on construction, you will be at $65 range, no 2 ways about it. Profit will be driven by market. Every spec home I build is constructed with the thought I may end up living there if I can't sell it.


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## Grumpy

Dirt cheap spec homes with no finishes are going for $150 a sq ft in my area. That's builder's charge to customers.


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## RYANINMICHIGAN

figure out how much it will cost you to build it. then what ever the market will bear above that will be profit.


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## DaveH

It doesn't matter how much anyone charges to build a house...The guy accross the country or the guy accross the street. The point here is how much does it cost YOU to build a particular house..of a certain size...in a specific location...with given factors. You might use top of the line items in yours...others might use bottom of the line or mid-grade. The only way to estimate anything with any confidence is to know every item installed and what cost are in volved. Do you want to sub everything? Sub a little? Perform sweat equity? I could build 2 2,000 SF houses next to each other, same floor plan everything, but!!!! 1 had a lot of rock to be blasted for the foundation...The lot cost more because it was on a corner... this means 2 different cost. Same house! You need to figure out everything involved and to what level your participation will be and what similar homes in your area are selling for. Then and only then will you know what profit margin you might make.....MIGHT! 

I'm not trying to burst a bubble...Just save your a$$

PS They are building for roughly $180 per SF here in Orlando


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## Joasis

Maybe we should flesh this out a little more. For instance, since I do not sub anything out except the mechanicals and masonry (brick), my cost is way different then a builder who subs it all. Now I charge myself the going rates, so I am trading dollars from one pile to another....

The more you directly participate in the build will affect the price and how you value your time will test the child proof cap on the asparin bottle.


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## maj

Cheap, no frills on slab - $85
Mid-level, better cabinets & millwork w/ basement - $100
High-end, custom cabinets, crown, etc., walk-out basement - $130

Profit for builder - 8-10%

As you can see Travis, there is a great difference geographically. My area, as well as joasis' is low compared to other areas.

The exact same house here for $150,00 would be $350,00 somewhere else.


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## ApgarNJ

Most of my jobs are no less than 150 a sq ft. these are additions and renovations only, no brand new houses just yet. The average price for my additions, which are usually the higher end of things with expensive floors and very nice tile and cabinets, is around 200-300 a sq ft.
I normally just bid the job based on what everything is going to cost and then add my profit to the end. whatever that ends up being it is. you can get burned really fast by quoting someone a low sq ft price.
i'm not sure how anyone can build for under 100 a sq ft. that is what i charge for a basic garage that has no plumbing or heat. 100 a sq ft or less on a house is bare bones and the cheapest possible products out there, and i'm sure the details are very simple. I get so many calls for people quoting that they can get their house built for this and that a sq ft and i tell them well. use that guy, but don't complain later when it comes out looking like a dog'sass. 
ya get what you pay for, and I don't work for cheap, it's jut not worth it.


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## Joasis

I am always amazed how much market difference we see in these threads...and it just occured to me that area dictates way more influence then some allow. For instance, cheap spec with cheap cabinets, $55 and up (on slab). Better quality here is $70+...but remember, I get my custom cabinets for $115 a foot, solid wood. By the time we are in the $90 range, we are custom with crown...and you guys who doubt this, Oklahoma always falls in the least expensive area to own a home. I just bought 10 bulding lots for an average of $2250...and these are on paved streets with utilities....the homes I will build on these lots will be 1250 sq/ft average w/2 car garages/brick/steel roofs, and will sell for $90,000 to 98,000. This is just a comparison.


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## Tscarborough

A 100,000 doallar house here is just a future slum. You don't get any moudling, much less crown for less than 150$ SqFt.


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## Travis77

Well thanks for the input guys,,, and no i'm by far not just a potential home buyer,,,, I was given an acre lot for fathers day from my mother in-law to build on,,,, and she told me she was goin to be my finacial backing for the project,, and in return she just wants the cost of the build back. I'm just actually a 28 year old sub the has done construction straight out of high school,,, doin hard wood, tile, glass block, interior trim, framing, cabinets, electrical, plumbing,,, ect,,,, So in other words i'm learning the differnet trades but,, been workin for different builders, i just know what i charge the builder,, i don't know what the builder tacks on to the final cost for himself when it comes time to sell.


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## Joasis

Typically, a GC will do cost + 10%....and the margin isn't enough in some cases. If a sub crew were to charge me $4.25 to frame, I would charge $4.68 for example. 

The advice I will give you on your first spec is do not go overboard. A budget can be wrecked by small costs that add to big bucks..and if they have no added value to a home, do not do it. I know a guy who built a beautiful spec, and did all kinds of things like custom closet interiors, a super pantry, 6/6x12/12 tile work, tiled surrounds, and on and on, all in a 1150 sq/ft home that didn't appraise for what he ended up in it. Well, guess who lives there? I like tile surrounds in the bathrooms, extra deep bathtubs, fancy toilets, granite countertops, raised panel cabinets, but standard bath fixtures, flat panel doors, fiberglass surrounds make the spec budget happier, and do not detract from the appraisal. See what I mean? How many spec homes have berber carpet?

The next set of homes I am building are going to have acid stained concrete floors, paint grade trim and cabinets, luan flat interior doors, Basic steel entry doors and garage doors...ect. That is how I keep costs down. Where I do not skimp is name brand HVAC (York), great insulation, top quality framing, and good brick..in other words, a well built home, affordable for my market.


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## Travis77

well just outa curiousity,, what kinda things add value to a home?


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## Travis77

What kinda stuff do the appraisers look for that add value but wouldn't drive my budget over?


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## maj

ApgarNJ said:


> Most of my jobs are no less than 150 a sq ft. these are additions and renovations only, no brand new houses just yet. The average price for my additions, which are usually the higher end of things with expensive floors and very nice tile and cabinets, is around 200-300 a sq ft.
> I normally just bid the job based on what everything is going to cost and then add my profit to the end. whatever that ends up being it is. you can get burned really fast by quoting someone a low sq ft price.
> i'm not sure how anyone can build for under 100 a sq ft. that is what i charge for a basic garage that has no plumbing or heat. 100 a sq ft or less on a house is bare bones and the cheapest possible products out there, and i'm sure the details are very simple. I get so many calls for people quoting that they can get their house built for this and that a sq ft and i tell them well. use that guy, but don't complain later when it comes out looking like a dog'sass.
> ya get what you pay for, and I don't work for cheap, it's jut not worth it.


Apgar.... First of all, Those numbers are not mine, they are just an approximate for my area. I did not ever state that these were MY numbers. The numbers mentioned are average for where I live. Why can't some of you on this board accept the fact that pricing ANY type of construction is soooooooo different throughout the country!!!! 
Second...... If I were to charge what you do, I would not have one single job & be completely out of business. 
Third..... Just because you charge more than me does not automatically make you a better builder. For you to assume that low pricing in other parts of the country make for lesser quality work is just idiotic.
And lastly...... Are you REALLY building a basic garage for $100,000?


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## IHI

LOL at MAJ Dude, you'll get that from quite a few folks on here and typically it's just the "i wont start my truck for under $50K per day" and "you guys actually get out of bed to work for peanuts"

On one side of the coin we're lucky with low cost of living, but on the same aspect it sucks since this entire area is flooded with mostly low income since we have nothing but farming and a few small manufacturing places that provide the work unlike the east/west coasts where big biz is rooted and $$$ is higher. 

I get run off job sites trying to bid a basic garage at $16/sqft, guy in St Louis area told me he starts theyr'e garage building at $35 sw ft and goes up from there.....less than 6 hours from where I'm located and gettting 2x's as much money for same work...location location location LMAO!!!

here-24x24 complete garage =$9600 give or take for options
ApgarNJ gets $57,600 for the same garage??? 

gawd all mighty, I might pack my bags and trucks....head north east build 2 garages and then take the next 2 years off!!!!!!! This will be my "crab fishing" or "detassling job" gonna hate like hell to drive all that way to do the job, but for what it pays i'll make it work


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## Joasis

ApgarNJ said:


> Most of my jobs are no less than 150 a sq ft. these are additions and renovations only, no brand new houses just yet. The average price for my additions, which are usually the higher end of things with expensive floors and very nice tile and cabinets, is around 200-300 a sq ft.
> I normally just bid the job based on what everything is going to cost and then add my profit to the end. whatever that ends up being it is. you can get burned really fast by quoting someone a low sq ft price.
> i'm not sure how anyone can build for under 100 a sq ft. that is what i charge for a basic garage that has no plumbing or heat. 100 a sq ft or less on a house is bare bones and the cheapest possible products out there, and i'm sure the details are very simple. I get so many calls for people quoting that they can get their house built for this and that a sq ft and i tell them well. use that guy, but don't complain later when it comes out looking like a dog'sass.
> ya get what you pay for, and I don't work for cheap, it's jut not worth it.


If you honest to God charge 100 a sq/ft for a garage, you must have the highest permits, concrete, 2x4's and other materials seen on the planet.

I didn't read your post past the first few sentences til I read maj's reply above. I work with the numbers above, and if you do not belive it, perhaps we should do a break down on costs..of course, if you haven't actully built any homes yet, it may open your eyes a little. 

I also hear a lot about implied poor quality at the lower end, and it just ain't so with my specs. Now they may look like dog's asses to someone from NJ, but I guess after you leave NJ, everything looks like a dog's ass. 

I will be looking for one of your creations in _Qualified Remodeler _or _Design and Build._


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## Joasis

Travis77 said:


> What kinda stuff do the appraisers look for that add value but wouldn't drive my budget over?


Appraisers have to look for comparable value. The neihborhood you are building in should dictate the type of home you build. You would not build a 3 story, 5000 sq/ft neo classic in a 1950's ranch style addition.

The quality issue to me is important. I make sure the potential HO and appraiser look at the same things. Quality of construction, advantages of the steel roof (less to insure), name brand equipment, solid wood cabinets...ect. I do not install granite countertops, but I love concrete countertops...


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## Joasis

Teetorbilt said:


> joasis, when it comes time to do mine, I hope that you are on vacation.


I was not counting site prep and any speacial forming at the price I was quoting above. Basic flatwork is still a bargain. The flip side is getting a 5000 sq/ft ready to pour and bringing in a crew to pour it. They charge .50 a ft, and will be there for 4 hours or less....so $512.50 an hour for 3 or 4 guys...nice wages.

We don't do concrete countertops for customers yet...it is still in the learning curve for me, but it is what I am putting in the specs we are building. Since the house floors will be cut and acid stained, I want the countertops to match...base line is labor and materials makes it cjeap for me.


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## Chanhnam99

Joasis do u lived in Oklahoma City? I current had couples project need your advice. You can contact me at [email protected] or 405-323-7777


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## Frank Castle

Chanhnam99 said:


> Joasis do u lived in Oklahoma City? I current had couples project need your advice. You can contact me at ...


:blink::blink:


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## Jaws

Man 06 prices and now are retarded different.....


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## jlhaslip

Priciest place I worked on was 5,000 sq ft costing 7.2 Million.

$1,440 a sq ft. And that was over 8 years ago. Probably cost more today.


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## greg24k

Let's put it one way...Not enough!


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## SuperiorHIP

Old thread but very interesting reading. I know the rules here about pricing but it is cool to see what things cost elsewhere.


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## Frank Castle

SuperiorHIP said:


> ...but it is cool to see what things cost elsewhere.


You know the cost.......










Tree Fiddy.
:laughing:


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## Joasis

Chanhnam99 said:


> Joasis do u lived in Oklahoma City? I current had couples project need your advice. You can contact me at [email protected] or 405-323-7777


Advice is free, post your questions.


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## wazez

Joasis said:


> Teetorbilt said:
> 
> 
> 
> joasis, when it comes time to do mine, I hope that you are on vacation.
> 
> 
> 
> I was not counting site prep and any speacial forming at the price I was quoting above. Basic flatwork is still a bargain. The flip side is getting a 5000 sq/ft ready to pour and bringing in a crew to pour it. They charge .50 a ft, and will be there for 4 hours or less....so $512.50 an hour for 3 or 4 guys...nice wages.
> 
> We don't do concrete countertops for customers yet...it is still in the learning curve for me, but it is what I am putting in the specs we are building. Since the house floors will be cut and acid stained, I want the countertops to match...base line is labor and materials makes it cjeap for me.
Click to expand...

How did your specs sell then with the above mentioned floors and countertops?
I am considering a spec/rental and would like to get the most bang for the buck lol


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## Joasis

That was 2 housing booms and busts ago. 

The specs sold, but I have one that I held for two years. 

The problem with spec building, as I see it, is more then just risk...it is about timing and expectations. 

The most valuable lesson learned was in building starter homes. I assumed wrongly that we could build a 1250 sq/ft home with 3 beds and two baths, and basic amenities, and sell it EASILY. Nope...wrong, nada....because.......(wait for it).......

If you have 130k to spend on a home, why buy a new small home when you can buy a used home of 2000 sq/ft or more for the same money? That is why I don't build specs any longer, but I have friends who still do them continuously.


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## NJGC

Joasis said:


> That was 2 housing booms and busts ago.
> 
> The specs sold, but I have one that I held for two years.
> 
> The problem with spec building, as I see it, is more then just risk...it is about timing and expectations.
> 
> The most valuable lesson learned was in building starter homes. I assumed wrongly that we could build a 1250 sq/ft home with 3 beds and two baths, and basic amenities, and sell it EASILY. Nope...wrong, nada....because.......(wait for it).......
> 
> If you have 130k to spend on a home, why buy a new small home when you can buy a used home of 2000 sq/ft or more for the same money? That is why I don't build specs any longer, but I have friends who still do them continuously.


I've found exactly the opposite to be true in my area. Everybody likes new and the new starter homes in the 3/2 configuration are often under contract before the house is even dried in

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