Students ask me, “Tom, how can you save over 30% when you build your own home without doing the physical work?”
- No Builder Fee 10% – 25% *
- No Selling Commission 3% – 7% **
- Doing It Yourself 5% – 10% ***
Total 18% – 42%
* Many builders in the luxury home market earn more than 25%.
** Eighty percent of all homes sold are sold through a real estate broker. When you build your own home, you will not be paying a selling commission.
*** When you build your own home, you can shop for the best subcontractors and materials at the best price.
Most builders, like myself, will develop relationships with subs and suppliers over the years. Yes I could get a better price from another plumber but I am going to use my plumber. The same thing is true with my material suppliers.
I had a student that shopped the entire state for bargains. He built a home for $115,000 that appraised for over $500,000! You can do it too, if you are willing to shop and bargain.
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