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Updated over 3 years ago on . Most recent reply

Account Closed
  • Rental Property Investor
  • Dallas, TX
44
Votes |
155
Posts

Average Home Builder Commission?

Account Closed
  • Rental Property Investor
  • Dallas, TX
Posted

Hello,

My partner and I are building our first ground up single family home in Horseshoe Bay. We have purchased the land and have signed a contract with a builder. The house is a two bed, two bath, and is 1,490 sqft. My question is this: What is the average commission that a builder charges on a new build (their profit)? Is there a rule of thumb? Is there a certain percentage? I’d like to know so that moving forward we can negotiate better and ensure that we are getting a fair deal. Thanks, Nick

Most Popular Reply

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299
Posts
152
Votes
Jeremy England
  • Contractor
  • Pensacola, FL
152
Votes |
299
Posts
Jeremy England
  • Contractor
  • Pensacola, FL
Replied
Quote from @Sebastian Marroquin:

The other way would be for you to get your own subs and do a an owner build. (much riskier but you could do it for 75% the price above). 


 At least in the 2 states ive built homes in an owner builder could only build his personal residence.  Not investment property or second home

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