I am looking to build my first spec home and would like some feedback. Below are the numbers I have to work with. It is a slab on grade single level 1,600 square foot home with a two car attached garage. I have talked to a number of realtors in my area and these are selling well.
Purchase lot $31,000
Dry Wall $12,760
Lumber and cabinet package $66,976
Realtor fees when selling $13,000
Bank fees and interest $4,100
Building permit $1,700
Labor to build - Paid to my construction company $36,750
Total cost $234,344
Going with recent history of what others are selling for in the area it looks like it should sell for a minimum of $250,000 possibly closer to $265,000. Is there something I am forgetting? Do my numbers look about right? Do you think the margin is suffficiant?
There is a LOT you're forgetting and even if you weren't, it's not a good deal. You're in way over your head based on this post.
I would find someone who does this for a living and offer to intern for him for a few months...
You want to invest 234 to make 16? I don't recommend it at all.
Also not sure of your costs. My builder is doing new construction at 80/ft on medium-high end quality (~400k homes), plus impact fees/permits. On entry level homes it's high 60/low 70s.
In general 30k lot where you are selling a 250 home should work into a good deal... at least in this market.
@Miller Josh I agree with everyone else, some thing seems off. If this is your first time out the gate I would definitely try and team up with someone, I have built house here in California for less, and have used subs to do the most of the work. so I would not try and do all the work yourself.
Haha, what a list, you'll probably lose 30-60k if you'll try it.
No margin, you will lose money on that deal.
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