Could you look at my spec house numbers?

6 Replies

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

Plumbing $15,200

Electrical $10,600

Concrete $15,800

Dry Wall $12,760

Flooring $4,000

HVAC $16,158

Lumber and cabinet package $66,976

Driveway $3,200

Landscaping $1,200

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... 

Josh I've been building spec homes for the past 12 years. If you would like some coaching through your first deal I'd be happy to do so. Feel free to contact me but these numbers are way too broad to use as a control budget. You need a specific take off for every piece of the house factoring material, labor and time.

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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