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Building Blocks – Construction Costs of a $310,619 Home


Construction Costs and its affect on the Housing Recovery

home_sale

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