Home Buying in Douglasville>Question Details

Hali, Home Buyer in Austell, GA

Is it possible to find out how much it cost a builder to build a home?

Asked by Hali, Austell, GA Mon Mar 2, 2009

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Hali,

In theory you could. You might just look up the builder and ask. However, in today's market a home built even a few months ago might actually cost more to build today than you could purchase it today. You didn't ask specifically what you wanted to know other than if it's possible.

So in short, YES it's possible.
1 vote Thank Flag Link Mon Mar 2, 2009
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
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Hello Hali,

Anything and everything is possible these days. However in this case, as many others, many things are improbable. When building a home there are so many cost variables that you can take two of the exact same home models, with all of the exact same features, built by the same builder, sitting on lots right next to each other, built concurrently or even at different times and the costs associated with their builds WILL be different. If one home is delayed a week then the material costs could fluctuate or the labor costs differ. One home may have had issues that require corrections which raised the cost. Then there are all of the other associated costs such as maintaining the home until the final sale and transfer, the builder's own time and expenses to visit one home more often due to issues, etc., etc.

Only the builder themselves would be able to tell you the cost of building that home. It is improbable they will even know the exact costs. Many costs are spread among homes and not counted towards one specific home as the level of documentation required to keep this fine of a detail would be staggering.

About the only cost factor you may be able to determine is an average per square foot value from all builders in a particular area and during a particular time frame. These types of costs are used by insurance underwriters in their actuarial data modeling for calculating insurance costs, losses, etc.

If you do find a wy to actually determine true information for this question please let me know. I am always interested in this type of information.

Emmanuel J. Scanlan
PS Inspection & Property Services LLC
http://www.psinspection.com
214-418-4366 (cell)
TREC License # 7593
International Code Council, Residential Combination Inspector #5247015-R5 (Electrical, Mechanical, Plumbing and Building)
Texas Residential Construction Commission, Third Party Warranty Inspector #1593
Texas Residential Construction Commission, Inspector, County Inspection Program
Texas Department Of Insurance, VIP Inspector # 08507061016
Hayman Residential Engineering Services, Field Technician
CMC Energy - Certified Energy Auditor

Knowledge is power, but sharing knowledge brings peace!!
Web Reference: http://www.psinspection.com
1 vote Thank Flag Link Mon Mar 2, 2009
As a Builder in my past life you can definately get close to what it cost the builder. Why do you ask ?? This is important to understand how you are going to use the information in negotiation. There are some crazy deals right now. I have just had a contract accepted on a true custom home for $349,000. Original price was $625,000. You can not build at that price???
Contact me directly I will be happy to let you know how a buiilder prices their homes.

Paul@servingdouglasvillehomes.com
Web Reference: http://www.TeamRenton.com
0 votes Thank Flag Link Mon Mar 16, 2009
Hali -

Who cares what it cost to build? It's what the market says it's worth that matters. Builders ran wild during the boom, no let them bleed, you can insult them and if they are let them hold and eventually give it back to the bank, then buy it.

The question is why have they been listed for so long? We''' poke around if you like -

Hank Miller, SRA, ABR
Associate Broker & Certified Appraiser
Prudential GA Realty
678-428-8276
0 votes Thank Flag Link Tue Mar 3, 2009
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