How much the Builder cost and carrying cost etc?

The builder bought it 1M (995k), spent money to build (almost 1 year carry cost) and listed for 2.5M.

Is it possible that he would have spend 750k to build+carrying cost and keeping 750k as profit (including 5% sales commission)?

How much would have his actual build+carry cost?

$250/SF hard cost plus builders profit. Plus on and off site costs. Plus soft costs and interest. I fund builders. I get 11% plus points. Permits fees and design can be an additional $100k. Then there are selling costs.

So for this SJ project hard costs alone are $750k. Plus builders profit. All the additional costs another $250-$350k. Profit $400-$500k if you are your own builder.


elt1 thank you.

As of yesterday, I got into contract finally, after 6 bid losses last 2 months. Planning to build a primary home for me. I will not have selling cost. I would like to have 3000 sqft (lowest 2750 sqft) single story home with 3 car garages. I am not a builder, but decided to go for it. Limiting the budget to 850k as I sold all my stocks and getting cash out refinance from my home.


Good luck. Financing is a key area for savings. Us hard money lenders wear ski masks. Look for more affordable sources. PM for more info. Interview builders ASAP.
I recommend really limiting SF as much as possible.
A well laid out 2500sf house can be just as livable as a 3000sf. Eliminate hallways go with a great room instead of formal living dining and fm and can save 500sf. Make the master a little smaller and save a lot.
Kids bedrooms can be 120sf instead of 200sf.
Most owner builders oversize. Look at spec homes and hire their architect. Efficiency in design is key to cost savings.


Thanks again. I am getting loan for purchase of home alone, rest self funding, no addl finances other than cash out refi already in progress.

Congratulations! This will be alternately thrilling and headache inducing.
Everything Elt1 said.

I did the same a few years ago - I built a 3300 sq ft house in SF for myself - but since it was 4 stories, my structural costs went up. I learned a lot.

Nugget of advice - most owners do not think much about lighting until the last minute, at which point they panic and ask a builder “ how many and where should I put the recessed cans?”

Hire a lighting consultant. The lighting consultant will be cheap… maybe 1k or 2k tops. But the value they bring is immense. A lot of what makes custom houses and awesome retail spaces feel so spectacular is the way that the lighting is multilayered and arranged.


Congratulations! How much can you save to build vs buy the same house brand new?

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If I wanted to save money, there is another thought process, I need to go add-on bedrooms and Bath rooms, but that normally results somewhat skewed lay out. I really hate to change the lay out or go for add-on.

This way, building cost is appx 350/sqft while sale price runs $800/sqft-$900/sqft

I do not think that I can save some money, being a fresh builder, on tear down/rebuild. I will get a home of my choice, in good location, like high 10ft ceiling, single story SFH with 3 car garages.


Need to meet up… have always wanted to build since 2010 :blush: even bid for a few “land” but finally didn’t because not confident of quality :blush: control. Isn’t 3000 sqft for single story is huge?

What is the lot size?

Lot size appx 8800 sqft. Presently, I am living in 4400 sqft home, actually downsizing to 3000, also need to downsize my furniture…etc. It may be around 2750 sqft to 3000 sqft whatever fits my budget.


We are going through this process right now. We bought last year and we just started construction of our new house. It’s a single story 2900sqft house. @Elt1 's estimate in terms of costs are spot on. Our permitting/design process took 6 months and the build is estimated at 10 - 12 months.



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Congrats, @Jil. That’s awesome. That’s also something we are looking too and planning to self-fund like you. I’ll be asking you more questions later too :slight_smile:

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Hi… can anyone provide references for builders?
Looking to get into building customs home in Bay Area ca

The cost of building a house is between $100 to $200 for each square foot built. The average cost of a home varies based on location, materials and size.

Of builder? And is not what builder charges us, right?