New Home Contruction

[Gregory Childs]

Hey there,
I know their are a lot of variables but, ignoring the cost of the lot itself, do these numbers look reasonable to build a 2,300 sqft home (new construction) in the SE USA market with a target resale list price of $200K.

Direct Cost $112,000
Standard Features $5,000
Site Conditions $3,000
Builder Fee $12,500
Utilities / Maint $1,200
Commission $12,000
Closing Cost $6,000

I am just using this as an example - as I build a pro forma template for new construction.

Thanks - TTFN,

Greg

[Rich Weese]

Hi Danny,
All of the above.
In St. George, UT I'm building for the retired clientele that are moving for the sunshine. These are snowbirds wanting a nice 2nd home or final home. I looked around a lot a couple years ago and bought a new home in St George. There actually wasn't much to choose from. I finally found one and bought it. Nice upscale subdivision. Wifey and I tweaked it a bit from male and female perspective, added a 3rd bath, enlarged 3 car garage, larger covered patio and have built 4 more so far. I bought a few lots in same subdivision and continue to build the same plan. From 1988-2002 wifey and I bought 44 "character" lots and built spec homes. We designed homes specific for those lots and then took the plan to a designer to finish up.

In so TX, the median home is much less costly. I searched plans a lot and had a couple things that I wanted. Must be 4 br with one a flex room, 2 car, and stay under 1800 sq.ft. on single level. We've tried 3 different plans with a little tweaking on single level and 2 2 level plans that were between 1800-2000 sq ft. I wanted these in a price range that I had a second and third exit strategy. Sell to owner user, sell to an investoras turn key or own myself as a long term hold for rent. Sales prices are 150K approx and rent for 1350.

The 3rd way- I held a design contest here on BP and actually selected a winner for a plan that we'll build first part of the year. That was kinda fun for those involved.

Remember, I also had previous experience in building specs prior to these forays into construction of these homes.. I don't get over extended as others do. I've seen too many friends/competitors go completely down the tubes due to over extended. They always say it will never happen and then it happens. I see that coming again. It happens quickly. A good friend of mine, plumber, went from 240 new homes a year to only SIXTEEN a year in less than 2 years. Be careful. Rich