Construction Costs and its affect on the Housing Recovery
Ever wondered what the cost by category of a new home home build is? Here’s the sales price breakdown for a home with a final sales price of $310,619 by percentage/$ cost.
CONSTRUCTION COSTS BREAKDOWN:
- Finished Lot Cost 21.7% or $67,551
- Total Construction Cost 59.3% or $184,125
- Financing Cost 2.1% or $6,669
- Overhead and General Cost 5.2% or $16,306
- Marketing Cost 1.5% or $4,645
- Sales Commission 3.3% or $10,174
- Profit 6.8% or $21,148 = $310,619/100%
TAKEAWAY: Someone building a home needs to be cognizance that there is:
“NO PERFECT HOME”
Even after you go through the build process to build that,
PERFECT… PERFECT HOME ….when you move in it still won’t be perfect.
You’ll find yourself going …. I shoulda done this …. or wish I’d done that.
And that’s perfectly normal because everyone does it!
Source: Tierra Grande, Journal of Real Estate Center at Texas A&M University
