Obviously, these costs vary by size, style, area, overall conditions in the marketplace and a host of other considerations, but generally speaking, most home builders follow a version of this economic model.
Builder Costs (21%)
- Sales Commissions
- Closing Costs
- Deferred Marketing
- Advertising
- Contingency
- General Administration Cost
- Profit
- Income Tax
- Warranty
Land and Lot Development Costs (25%)
- Raw Land
- Site Preparation
- Financing
- Zoning/Permit/Fees
- Site Development
- Miscellaneous
House Construction Costs (54%)
- Site Preparation
- Excavation/Foundation/Basement
- Framing & Finish Carpentry
- Plumbing
- HVAC
- Electrical
- Interior Finish
- Exterior Finish
- Financing
