re: OT Homebuilders-Spec Home Markup

I find that very hard to believe. The only way that's happening is if the homes are appraising for that much. And $125k homes don't appraise for $310k.

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Probably didn't consider the lot either

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Exactly. These threads always end up the same. Some posters are using #s without the lot and others are using #s including the lot. Obviously this is comparing apples to oranges.

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roughly $105/ft built by myself

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Very realistic when you self perform a lot of the work. Another $30-50/sf for a lot and the labor factor of not self performing and another $30-50 on that for mark-up.

$180 is very reasonable if you want something quality. I'd say $150 is lowest you'd want to spend with a builder to ensure quality, obviously all dependent on location/finishes

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I received a bid yesterday for an add on bathroom that came out to roughly $300 sq ft. I said gtfo. Needless to say, now I'm looking for more bids on a add on and kitchen remodel.

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That may not be as bad as you think. When someone builds a home for $100+ per foot, that doesn't mean the bathroom costs $100/ft. Bedrooms, hallways, and living areas bring down the average price per sq ft of the home while the kitchen and baths bring it up.

On top of that remodels/additions will always cost more than new construction b/c they are a complete headache for many reasons but here a few:
- Homeowners expect the builder to babysit their house the entire time
- working hours are limited
- the jobsite may be hard to access
- it's usually a pain in the arse to tie in to the existing house
- a builder will make more trips to home depot to get small items for a remodel like this than he'll make for an entirely new home.
- homeowners constantly add extra work and expect to get it for free b/c the workers are already on site
- homeowners have more leverage with the finances
- subs have minimums and won't give you their new construction rates. In other words, the roofer isn't coming to your house to lay 2 squares of shingles for $200.

If you are adding a 10x14 master bath with custom cabinets, a job built shower, nice tub, expensive counter tops etc... I wouldn't be surprised that it is $300/ft. If the bathroom is a bump out, that's three new exterior walls, roof, slab, etc on top of everything listed above.

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$180 is very reasonable if you want something quality.

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That seems pretty high assuming you are not factoring in the lot. Lets say you are building 3,000 square feet under beam which will probably be ~2,500 square feet living. That means 3,000 square feet x $180 = $540,000 plus lets say the lot cost you $140,000 your total is $680,000 for a 2,500 square feet home.

Now if it is built for around $130 per square = $390,000 +$140,000 lot = $530,000 for 2,500 square feet which is still a lot but if the lots are $140k that means it should be worth at least $200 per square.

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You have to figure that a builder is going to make about $50,000+ building your house.

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Most builders I know don't make this much unless the house is pretty large or has some nice finishes to bump up the price. Even if they get $40k on a house, they still are paying bills out of that: general liability, workers comp, employees, etc. It isn't like the entire builder fee is profit which is what most here believe.

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That seems pretty high assuming you are not factoring in the lot.

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I am including the lot. Turnkey

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Appraisals are done on a rotational basis by the bank, they are not allowed to be selected by banks or the builders anymore unless you want one that is strictly to determine value for oneself