home building cost

[Leo]

I am slowly putting things together in order to start a homebuilding business. I want to start by building a high end spec and progressing from that point. So far I have incorporated and have tested & applied for a general contractors license.

I will need an investor to help me with finances for the first few homes. A family member is a good prospect but, I want something on paper when I present it to him.
I am in the process of writting a business plan ( of sorts ).

With out lot a and a set of plans to estimate it's hard to put any real numbers together.

A builder has told me on a normal lot, normal construction the following rule of thumb works. 22% Lot + 56% Construction + 22% OH & Profit

I was also looking at RS Means Residential Sq.Ft. Cost in Home Depot yesterday. I wonder how accurate those cost might be.

I would appreciate any ideas, opinions, direction on how to present this without a hard estimate.

Leo

[grumpy]

Costs will vary from state to state. Best thing to do is contact your subs and have them start bidding on your prints so when you get your loan you know how much to ask.

Buy a set, or two, of plans on one of the Internet home plan websites. I think it's worth the time and few hundred bucks the plans may cost.

In regards to the RS means, I'm curious if you know how to read it? Not trying to insult but it's not as easy as it seams at first. You have to consider regional variables usually found in the back of the book.

[Leo]

Hi Grumpy,

Thanks for the reply.

I agree with your reply. It's a catch 22. I have no lot or prints at this time. What I am wanting to do is come up with numbers to get a backer on board. Once I have a lot and plans I can provide a good estimate & real numbers.

The average lot in Santa Fe is between $90,000 and $150,000.
Regular custom home prices range from $130/sf to $300/sf.
Some design/builders are building million dollar spec homes here.

I wondered if anyone could compare that formula to their building history to see if it was close.

As for RS means, no insult taken.
I am aware of the regional multipliers in the back.
To tell the truth I was checking the book out at the magazine rack while my wife was at the paint counter and I didn't really get deep into it.

Once again I was wondering if anyone had compared those cost to their historical data.

Leo