Building a house, is this normal ?

[KurtR]

I always get a kick out of the big GC that roll into our little town to do commercial jobs. They act like they are still in Denver in a town of 3000 where every one knows every one for a couple hundred mile radius. They try to pit contractors against each other with out the understanding pretty much everyone talks and knows the dirty shit they try and pull. The hospital expansion is only 2 years behind.

 

[jayhawk]

I'm that dirty guy that rolls in with a couple mil worth of yellow iron and has to work for less than the guys with a nail bags and lunch boxes. Man it's nice to be in a cab though. Sure wouldn't want to be the carpet layer these days.

What does this mean?

 

[KurtR]

What does this mean?

Grading. Yellow iron = cat

 

[4cMuley]

No comment on the negotiations, but I feel compelled to jump in and say this because nobody else has.

You are 100% going to regret building a 2/2/2 in the future. It’s not big enough. Even if you’re certain you’ll never have kids, it’s too small to comfortably host family and friends. Finances aside, you want to go bigger.

Not being able to host has its perks.

 

[jayhawk]

I had a

Yep, $30-35 per hour for laborers to semi-skilled jack-offs, up to $75 per hour for the most skilled finish carpenter I've ever encountered.



$247.62 per square foot isn't bad at all for a nice place in 2026, especially for something so small. There's just no economy of scale that would drive that price/sqft down. Is that including sitework and utility connections?

I personaly refuse to give verbal or on-the-spot pricing on anything significant. It's a recipe for somebody to cry foul when they see a real number and then go full throttle butt-hurt on the internet. I don't know how much the third guy looked at it before he gave you a verbal; he could be full of crap, or he could have been surprised at something in the plans. You’ve got two contractors at an identical number…the price is the price. Bitching on a forum won’t change it.

Rant engaged (and not directed at OP):

We are almost to the point of tradesmen actually earning what they’re worth, and as a blue-collar turned white-collar guy, I’m glad for it. People like to imagine that guys in the trades are toothless, dumbass dipshits, but stop and think for three seconds…do you want an actual inbred moron building your place, or someone with a fully-functioning (or close enough) brain building your place, versus someone who would be in adult daycare without that job? If the latter, there are likely a lot of guys who fit your criteria. If the former, then try to comprehend that these guys have families and are making a living too, and they don’t have to live in near impoverished conditions to make your dream a reality.

If the price is too high, then welcome to the real world, where you can’t afford every frickin thing you want. This is not the same economy the boomer generation came up in, and the cost of construction reflects that.

Tariffs are a real issue, and not one that contractors or suppliers should be expected to eat. If the materials can’t be dropped on site within 30 days, expect the price to change. Contractors don’t control that shit and aren’t getting rich off of it.

Outside of some bad actors, contractors in general are not raking in money faster than they can stack it or raping people like some in this thread imply. It’s a supply and demand economy just like everything else…why would I do one job at 6% if I could do another at 12%? The typical residential GC in my area is 15-20% on fee (read: profit) and they’re turning down work just to be able to keep up with what they have. Why in God’s name would they take a job at 6, 8, 10%? Supply and demand, in its purest form.

So, why build now versus waiting for things to level off? Well, we are not even close to replacing skilled tradesmen at the same rate they are retiring or dying. Go ahead and wait to see what things look like in 5, 10, 15 years…I’m legitimately concerned, as a commercial construction project manager, that we won’t be able to perform the work that clients want (and this is compounded by the current admin’s ICE directives). Simply put, it isn’t going to get better. Go ahead and play the game of waiting to see if prices come down…it isn’t going to happen in construction any more than it will in any other industry.

OP, I see your point of not wanting to take on this level of debt in your position in life, and I don’t disagree with it. But this is today’s reality…it will not get better, it will likely get worse. Plan accordingly.

This is spot on.

My friend recently remodeled his kitchen and complained the contractor wanted $150hr for labor. I told him to find out what his company charges per hour for his own labor….$350. There ya go.

 

[jayhawk]

Grading. Yellow iron = cat

Ah it all makes sense now. Thanks

 

[Harvey_NW]

Its not quite that simple.
The word GC keeps getting used but most people are using what is refered to as a builder.

They can and normally handle most parts of the build. From architucture plans, engineering plans, permitting, running the build. Carrying insurance GL and builders risk. Inspections, surveys and WARRANTY. Its pretty tiresome as all clients have "regular jobs" so they only want to talk weekends and evenings which greatly disrupts your personal life. Its also damn hard to get away from an active build.

The insurance costs are high. Educations cost money and you are paying for their knowledge. If a guy can build 4 houses a year he can make 150-225k. Its alot of work for the money. Remember they also have to pay taxes on that money at about 33%.

This. The "GC's (or Project Managers)" under an umbrella company are the guys with no real responsibility, mostly just scheduling subs and the corporate side takes care of the paper bound logistics. They don't make 20%. Good custom builders are different. Both have their place.

 

[WCT3]

I work as a PM for a mid-sized steel subcontractor and regularly work with a variety of home builders. I think people significantly underestimate the difference between a high quality custom home builder and a mediocre to bad builder. The best builders that I work with are able to foresee problems with finish details and address them during framing/roughs. The mediocre ones find the problems after finishes and then half ass a solution by sticking some metal or trim to cover up the problem. The bad ones don't even notice the problem until the homeowner points it out or it's just ignored and they move on to the next job.

I know people love to complain about contractors and say all they do is make a few phone calls but if you're able to find the right company to work with they can bring your home to the next level of construction quality.

 

[Mikedlaw]

So they have costs out of the 15-20%?

Cause it sounds like they are making 400 k a year just for having a relationship with subs, if they only do 4 builds.

Seems wild. Not to down play they roll.
But it seems like my basic job roll as a foreman. Except in a totally different industry.
Just seems wild to make $35 k a month just to facilitate a build with other people’s money. And yet have virtually zero accountability if it goes over budget or not in time.

I had a builder buddy for awhile.
He had his guys down pat and were framing a house in 60 days

But he was financing the entire deal, then selling a finished, financiable home.

Seems like a guy could grossly over pay the subs, coaxing them to show and do a good job, and still save a pile.

Not saying anyone should or shouldn't be their own GC but relationships with subs are important. Someone off the street walking into my shop wanting a quote will have a significantly higher quote than a contractor that we have a good relationship with.

 

[Whitefox82]

Yes a “builder” and GC are essentially the same. As stated above, they are the ones pulling permits/survey work, etc.
Not sure if this was stated either, but, as a homeowner another good way to save $ is to offer to pay for materials with cash if you can. This option is probably only available to you if you’re not dealing with a licensed GC. (Think new deck boards/railings, siding, or roofing - this kind of work doesn’t require a licensed GC) Wait til AFTER you get a material quote then ask for a cash price. It should be roughly 10-15% less if not more. Remember when you’re writing out a check to a business they have to pay taxes on that amount. The contractors will mark up that material to reflect taxes. Homeowners often think they’re getting better prices through a contractor but that’s not necessarily true.
When I GC my own home I either ordered all materials myself or asked the subs for their material quotes from their suppliers. That way I was paying everything at cost. It helps to know your contractors personally for this I’ll admit! And I will say again, if possible, if you can GC your own home it will save you money. You can do it if you have an understanding of the order of operations and if the scope of work isn’t too overwhelming for you.

 

[Mag_7s]

Not saying anyone should or shouldn't be their own GC but relationships with subs are important. Someone off the street walking into my shop wanting a quote will have a significantly higher quote than a contractor that we have a good relationship with.

This is fair and in my opinion good business practice. You have to take care of those who take care of you. The owner/builder is not likely to be a repeat customer for most material and sub contractor work, so it would make complete sense to not give contractor deals/discounts. However if the work done or materials are sub Parr then that reflects poorly on you and the business.

 

[woods89]

I work as a PM for a mid-sized steel subcontractor and regularly work with a variety of home builders. I think people significantly underestimate the difference between a high quality custom home builder and a mediocre to bad builder. The best builders that I work with are able to foresee problems with finish details and address them during framing/roughs. The mediocre ones find the problems after finishes and then half ass a solution by sticking some metal or trim to cover up the problem. The bad ones don't even notice the problem until the homeowner points it out or it's just ignored and they move on to the next job.

I know people love to complain about contractors and say all they do is make a few phone calls but if you're able to find the right company to work with they can bring your home to the next level of construction quality.

Well said.

 

[roymunson]

building is expensive.
Built my house in 17, a steel build in 2022, and a cabin last year.

Not sure I can sell my house today for what I have in it, but it's my house, and I'll die there. And I've enjoyed it for 10 years while I worked my straight job. I'm blessed to make enough to be good at what I do and pay someone else to be good at what they do.

building is expensive.

 

[Harvey_NW]

Not sure I can sell my house today for what I have in it

That's crazy. Mine initially appraised around $350K when I built it, and right now the estimate is $750K.

 

[RS3579]

Have she/you looked into a modular home on a poured foundation? I don’t own one, I’m just making a suggestion.

 

[roymunson]

That's crazy. Mine initially appraised around $350K when I built it, and right now the estimate is $750K.

Maybe I’m wrong. But I built near the top of my market. I built to stay here. Planning on it.


Sent from my iPhone using Tapatalk

 

[Bobrobheimer]

I am a builder/GC in the residential home space. Prices have increased dramatically in the last 6 years and compared to the area I work in those prices sound pretty reasonable depending on what type of site work is involved. The guys I work hire aren’t the cheapest but they are good and reliable - and nobody I know is getting rich.

The idea that two builders are actually pricing the same exact thing, even from a well developed plan set, is very unlikely. All sorts of assumptions get made at that stage and plenty of guys are happy to come in low at the start. I don’t know that it does me too much good but I like to be as realistic as possible with estimates so that I am more likely to come in at or even under the original estimate.

 

[Npike4040]

1600 is a waste.
1200 is a great place for two people.
900 is small but if layed out perfect I wouldn’t worry about it.
We will have a garage or shop for both vehicles.
I haven’t had a house payment in 20 years and will pay cash.
At 175 sf at least in my area is a 70000 diff.
I dont need 1600 with two people.
I just raised three kids in 1450.
I’m downsizing,i pay cash and I sleep way better than all my friends with there oversized over mortgaged home.
That’s 5 hunts and 5 vacations with my wife I can go on in the next 10 years..
Just how I look at things.

I'm with you on this. My wife and i just built a 1200' house in Missouri for right at 100 sq. ft. No kids and will be paid off in 6 years. We could afford bigger but why? I live outdoors unless its dark outside. I'm only in the house to crap, eat, or sleep. I'd rather go on 4-6 hunts out west and have money in the bank. Everyone's different but some people don't need a huge house!

 

[Npike4040]

Just adding this since I havent seen it mentioned... but for all the "be your own GC" comments you better either have industry experience or paying for it all in cash. Youre not going to just walk into a bank and get a construction loan with no experience. Alot of banks wont, even if you do have experience.

Ha Ha That's exactly what I did!

 

[tony]

Have she/you looked into a modular home on a poured foundation? I don’t own one, I’m just making a suggestion.

Yes sir, my girl is high society man!
She’s not crossing the threshold of a home with wheels on it.

Seriously though update:
Builder told her to go with a block wall basement to save money.
Do these get waterproofed as part of the build?
What is the best waterproofing?

She is quietly coming around to selling the land and buying a place.