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Easily Estimate Your Cost to Build

When looking to buy a home it's important to check out every option available to make sure you get exactly what you want. With today's crazy high real estate prices many people are exploring the idea of building their own home. But how much will it cost? In this video a builder shares a quick way to estimate the rough cost to build a new home in your local area. UPDATE: If you need more details on how to figure the cost number from the sales price...here you go: Use your local sales price number discussed as the "Revenue" number. Use 30% as your markup. Now go to the website below for the markup calculator and plug in your numbers to get your total cost. Remember, you will want to subtract the lot cost (20% of the sales price) from the cost number generated in the calculator. https://www.omnicalculator.com/financ... Here's an example. Say your sales price figured from realtor.com is $400k. Plug $400k into the "Revenue" box and 30 into the "Markup" box in the calculator at the link above. Your total cost for the project will be $307,692 and builder markup of $92,307. The rule of thumb lot cost is 20% of sales price or $80k. So $307,692 minus $80k gives us the cost of labor and materials of $227,692. Remember, this is an initial rough estimated cost based on quite a few assumptions. Your accurate cost to build will come after bidding the project out to a minimum of three companies per budget line item.