A sample from How To Be Your Own House Contractor
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EnglishVoice Age
Middle Aged (35-54)Accents
North American (US General American - GenAM)Transcript
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Chapter one, be your own general contractor and save this boat will teach you how to be a general contractor for building your own house. There's one big reason for doing this to save money. How much you save will vary considerably depending on local prices for labor and materials, land cost, building permits, the size of the house and your ability to follow the steps outlined in this book. If you do all that, I suggest you can save as much as 25% of the total market value of a house. If you think of how much you will have to earn and pay taxes on to accumulate the money to build, the savings are even greater and by reducing the amount of money you will need to borrow and then pay back with interest. You will save even more money for years to come. Let's look at what you can expect to save. Your savings are based on the difference between what the house would sell for when finished the market value and what it cost you to build. The size of the house will be the largest determining factor as most general contractors base their profit and overhead on a percentage of the total cost of the project. A larger house costs more and therefore will include a larger profit and greater overhead for the builder. You will also save more on real estate commissions as the size and value of the house increases. You can determine the market value of your new home prior to making a final decision about building. Here's how once you select land, obtain your house plans and complete a list of all the items you plan to put into your house, such as flooring and cabinets. A licensed fee appraiser can determine the fair market value of your future house. Your lender will order an appraisal as part of the loan process. So you could wait until then to make a final decision. If the appraisal shows that you aren't saving enough money based on your cost estimate, there's probably an error in your cost estimate efforts. Say that as a contractor, I build a house that I am offering for sale to the general public. My cost would typically break down as follows. The land usually costs 25% of the selling price with labor and materials taking another 50% that gives me a gross profit of 25%. Wow. You say that's a lot of money to make off of one product. Well, if it were that simple, you would be right. But before you get outraged with the building industry in general, let me, show you where that gross profit goes. When you build professionally first, I have to pay related sales expense out of my gross profit. If that involves a commission to a real estate broker, it may cost as much as six or 7% of the selling price. Next. Like any business owner, I have overhead expenses. This varies with each builder. But the National Association of homebuilders suggests that home builders allocate 50% of their.