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One of the biggest dangers for rookie builders is their lack of experience in pricing homes Even experienced carpenters often don t know how to estimate prices for complete homes They are not accustomed to figuring in the cost of septic systems, sewer taps, floor coverings, or finish grading How can you get the best estimates possible when you ve never done one before
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PRO POINTER One of the biggest dangers for rookie builders is their lack of experience in pricing homes Even experienced carpenters often don t know how to estimate prices for complete homes They are not accustomed to figuring in the cost of septic systems, sewer taps, floor coverings, or finish grading
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Take a set of blueprints to your supplier of building materials Ask the manPRO ager to have someone assess your POINTER material needs and price them Many Once the appraiser has given you an suppliers will provide this service free of idea of what the appraised value of charge, but some won t Circulate copies your house would be, you can better of the blueprints to every subcontractor gauge its market value You can conthat you will need It is a good idea to get sult some pricing guides to deterquotes from more than one subconmine what various phases of work tractor Try to select two subs for each will cost These guides are available trade so that you set up a competitive sitin most book stores, and they have uation Have the subs give you prices for multiplication factors that allow you all the work they will be expected to do to adjust the prices to coincide with While your subs and suppliers are those in your particular region working up their prices, you can start doing some homework of your own Take a set of blueprints to a reputable real-estate appraiser Ask the appraiser to work up either an opinion of value or a full-blown appraisal This will cost you some money, but it will be well worth it Once the appraiser has given you an idea of what the appraised value of your house would be, you can better gauge its market value You can consult some pricing guides to determine what various phases of work will cost These guides are available in most book stores, and they have multiplication factors that allow you to adjust the prices to coincide with those in your particular region When you get your prices back from the suppliers and subcontractors, you can compare them with the numbers you came up with from the pricing guides You can also look at the difference between the bid prices of your subs and suppliers and the finished appraisal figure The spread between the bids and the market value represents your potential profit It should normally relate to about a 10- to 20-percent gross profit A 15-percent profit might be an average, but the amount varies with economic conditions and the quotes you received from subcontractors and suppliers We are going to talk more about pricing and estimating later in the book, but the procedures we have just discussed are the basics The Internet provides another source for estimating services The Marshall & Swift website is just one of those sources There are several cost guides available, such as Sweets Repair and Remodel Cost Guide, published by the McGraw-Hill Companies, and Means Residential Cost Data, published by the RS Means Company
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How Many Houses Can You Build
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How many houses can you construct in a year as a moonlighting builder The answer to this question will vary with experience levels, sales opportunities, lot availability, individual time commitments, and so forth You should certainly be able to build at least two houses and probably four Since you are using subcontractors, you can have multiple houses under construction at the same time By phasing the start of multiple housing projects, you can spread out the cash demands over a longer period of time I used to do about 12 houses a year as a part-time venture, but I had help from my wife A goal of six houses a year seems as if it would be realistic for someone with a construction background and a good stable of subcontractors Once you get into the building game, you can assess your time needs and adjust your goal as needed
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