Average Home Builder Commission?

[Nicholas A.]

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