The Economics of Building a House (And Giveaway!)

This month we're talking about the book Be Your Own House Contractor. Today, we'll highlight the basic costs associated with building a house:

Say that as a contractor, I build a house that I am offering for sale to the general public. My costs would typically break down as follows: the land usually costs 25 percent of the selling price, with labor and materials taking another 50 percent. That gives me a gross profit of 25 percent.

The book goes on to say that the builder has to pay overhead costs and possibly a sales commission out of this 25%. This leaves him with about 9% net profit before taxes. These are costs you won't have as your own contractor, hence you don't have to pay them -- and thus save 25% building your own house.

Want to know more? You can win a free copy of Be Your Own House Contractor. Here's how it works:

1. Leave a comment below -- any comment.

2. Sometime tomorrow, I'll stop by the post, stop the submissions, and name the winner.

3. It will be that person's responsibility to check back to see they are a winner and then email me their contact information.

4. I'll send all the winners their books in one mass mailing going out the second week in September.

A few rules for these giveaways:

1. You can not win more than one prize.

2. I will be the complete and final judge.

3. Legal disclaimer: I can not guarantee safe delivery of the items. I'll send them via US Mail, so it's likely they'll be fine, but I can't control it and won't be held accountable if the mail system messes up.

4. If you win something and do not contact me within a week of winning, I reserve the right to give your prize away to another winner. Note again: I won't track down the winners -- it's your responsibility to come back and see if you won.

Good luck! Post a comment below for a chance to win this book!

Comments

[Scott Moonen]

I'd like a chance at the book.

[Ryan]

Second!

[Ryan]

Ah crap, I'm only third. Someone beat me to it.

[Sabrina]

I'd like a chance to win!

[Internyet]

Toot toot! Number five.

[Scott Kustes]

This looks like a really interesting book.

[Armel]

Dedication is needed for success.. here I am again!

[Brian]

One more time!!!

[Cherly]

I am going to the web site to start dreaming my future house!!!

I am still going to need that book though ;)

[Minimum Wage]

I will ask, but I think land is considerably more than 25 percent of the cost of homes around here.

[paidtwice]

This time I am IT

[Richard M.]

Please enter me again.

Thanks.

[Richard]

This could be the day!

[Cam]

Pick me, pick me!

[Fred]

Great page! I love the Biblical insights you provide on investing. Keep up the good work!

[Cory]

Hook me up!

[streetsmart]

Last try!

[lily]

who's heard of the show in tlc called flip that house? this book would really come in handy. pleeeaaase pick me!!

[Austin Williams]

Note that contractors who do a lot of business in an area generally get trades to perform work cheaper in exchange for continually hiring them on new houses.

[Harley]

cmon lucky number 5

[Richard Sullivan]

I would like a chance at this book,

Thanks

Richard Sullivan

[BradM]

Or you can just buy the land cheaper. One of my co-workers has bought 10 acres for $2000/acre and he has someone interested in buying lots off of the land. Similar lots down the road have sold for $20000/acre. Land is cheap in Alabama!

[Sani]

I don't have enough to build my own house, but your book might help!

[Willie Singletary]

This looks like a really interesting book, own my land

[Leng]

Pick me! =)

[Ruthie]

Who knows I will be building my own house SOON.:-> Theres no harm trying...Pick me.

[Familyfinanceguy]

Trying again...

[Seth H]

Trying again!

Thanks!

[Leeyann]

I could use another house. :P

[Matt G.]

I'd like to enter the contest as well!

[J Baba]

Posting a comment for the book!

[Rick]

So do these comments have to be substantive? Or is the picking completely random? Here's my totally enlightening comment.

Anyway, my land is worth about 16% of the total price of the house.

[FMF]

Rick --

I pick them at random. Good comments are not required. ;-)

[Dee Whit]

Really enjoyed your post! Going to the website for more information.

[Reto]

This is a comment.

[J V]

me me me!!! hopefully that should be enough for me to win.

[Goose]

Yes, I am going to WIN! (Power of positive thinking)

[SC]

I love a good practical advice/do it yourself book. Count me in!

[JH]

.

[rick]

perfect timing! bought land, need book!! I will be my own general :)

[Esther]

I'd love a copy of the book -- so here I am.... trying again :)

[thad]

Im not sold, I would like the book to see if you know what you are doing!

[FMF]

This giveaway is now closed. The winner is Goose who posted at 4:16 pm yesterday. Congrats!

Goose, please email me (see: http://www.freemoneyfinance.com/2005/04/free_money_fina_4.html ) and we'll arrange to get you your book.

To the rest of you, stay tuned. I still have plenty of copies to give away!