The Facts about Builder Margins:
The margin that builders make on your home construction varies widely. Typically, the range is between 15% and 28% of the home’s value. According to the National Home Builders Association, the current average builder’s profit margin is 19%. On a $350,000 home, that equates to $66,500. With Clear-Cut Building YOU get to keep the majority of that.
How does that all work?
Great question, your home’s value is based on the comparative value of similar homes in the neighborhood or area in which you are building. These are known as the “Comps,” which appraisers use to determine the value of your home. Since you eliminate most of the builder markups while building your new home, that difference becomes equity when your home is appraised.
Of course, you can decide to use the extra savings on material or feature upgrades to your home during construction. Whether you use your savings for upgrades, furnishings, or equity that is your choice. It is your reward for controlling the construction of your new home construction with Clear-Cut Building at your side.
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