So you want to build and sell houses for a living. Whether a side hustle or a full-time business, building and selling houses for profit is more than just money.
It's about creating something from nothing. It's about starting with an idea and seeing it come to life.
There are much easier ways to make money if that's all you want. But you want something more. Something fulfilling that money alone can't give you.
As a former electrician, I can relate. The feeling of finishing a project that began with nothing more than an empty lot and an idea is difficult to describe. But it's immensely satisfying, so I understand why building and selling houses appeals to you. It appeals to me too.
The question is whether it's profitable. And how do you get started? This guide will set you on the right track.
Is It Profitable to Build and Sell Houses?
Several factors influence whether or not it's profitable to build and sell homes. Some factors include your skill at building homes, experience, and access to resources and materials.
Market conditions and location also matter, as well as competition, type of home, how you finance your project, etc.
- Your Skill and Experience – Your skill and experience in building and selling homes may be the most crucial factor in determining whether it's profitable. It's not impossible to make money from your first home build, but profitability will increase significantly if you've built several homes before.
- Access to Resources and Materials – Similar to your skill and experience, building costs will be significantly less if you already have access to resources and materials such as labor and discounted building supplies. How close or far you, your workers, and your materials are from the construction site is also a significant consideration.
- The Market – It's obvious but worth mentioning… market conditions also play a big part in determining your profitability. Things like the cost of lumbar and the current real estate market.
- Location – Location matters when it comes to home values. While choosing a desirable location certainly matters, it's critical to consider other factors, including neighborhood safety, amenities, and school districts. In addition, if you already own the land and your location is set, your local market may determine the type of home to build.
- Spec vs. Custom – Spec homes are generally cheaper to build and sell faster. However, a well-planned custom home may sell for a higher price and be more suitable for the neighborhood. Spec and custom homes have benefits and drawbacks. Make sure to consider both and build the home best suited to your situation.
- Financing – Financing and interest rates are two factors that influence the cost of building a home. Depending on the size and complexity of the project and the number of people helping, you could be making monthly interest payments for a couple years or more. In addition, if market conditions change unfavorably during construction, the sale price may not cover the cost of loans.
- Scale – Building multiple homes and selling them at scale is far more profitable than building and selling just one. Builders with more than one project can pool resources and get deeper discounts on materials. As a side hustle, you won't have that advantage.
Despite these considerations, people build and sell homes all of the time. So it's certainly profitable. Whether or not it's profitable for you, however, will depend on your experience and the choices you make.
How Much Profit Can You Make?
The same factors that influence the profitability of building and selling a house also determine “how” profitable it is.
In other words, profitability is one thing. Profitable enough to make it worth your time is something entirely different.
According to Building Advisor, the gross profit margin for custom home builders ranges between 15 and 18 percent, but those numbers assume you are an established builder. If this is your first project, earning 15 to 18 percent could be ambitious.
Construction management software company CoConstruct also suggests these percentages are optimistic.
Having analyzed over 10,000 projects using their software, they found the average profit margin for residential home builders to be less than what Building Advisor found. Their numbers say that profitability was only 14.4% in 2019, 14.6% in 2020, and 14.9% in 2021.
But to be fair… based on house price averages, these percentages add up to tens of thousands of dollars.
For example, the average house price in the US (during 2023) was over $400,000. Using a conservative 10% and a $400,000 house (which is below average), you're looking at $40,000.
Again, these figures apply to established builders with significant experience and resources.
But when it comes to smaller independent builders, even small construction projects have setbacks and cost overruns. A full-scale home build magnifies that potential.
And in addition to building costs, you have selling costs.
These numbers shouldn't discourage you. As a side hustle to earn money from home, they are a good starting point. And keep in mind they are only averages. There are certainly individual builds that have generated significantly more revenue.
Building a House vs. Buying a House
You may wonder if it's easier just to buy and sell a house rather than build it. It's an important question.
Is it better to buy raw land and build a property from scratch, or purchase a distressed property, renovate it, and flip it?
Should you buy a distressed property and tear it down? Or what about a relatively new house that only needs minor modifications?
There are many options. In fact, there are other ways to make money buying and selling than rolling the dice on a home. Still, there can be a lot of money flipping property.
Undoubtedly, it's faster and easier to buy something in good condition. However, there are pros and cons to building and buying.
Many of the benefits you get from building a house are from living in it, not selling it. So if you're just planning on selling, it might not be worth it to build.
Having said that, it's much more satisfying to build a home than to buy one. And that's likely the reason you're reading this article. The skills you acquire in the process are also valuable.
Buying and selling a house isn't all it's made out to be either. A lot of time, effort, and money also go into flipping houses. Particularly if you're buying broken-down fixer-uppers.
Let's look at some pros and cons of building vs. buying…
Pros of Building a House
As mentioned above, most benefits you get from building a house come from living in it. It's constructed by (and for) you after all.
You can go with a simple design for minimum upkeep, or add complexity and detail if you prefer. You can also use modern materials to maximize efficiency.
In all instances, those are benefits you'll get as an owner, not necessarily as a seller.
A built house is also new, meaning you know what's behind the walls and underneath the molding. You know it's free of toxic materials and not built with leftover remnants that a contractor hid behind vinyl siding (as I've seen some builders do).
You can also use better materials than the average cookie-cutter builder so that your home lasts decades longer than it would otherwise.
In addition, building a house in some markets can be cheaper than buying.
Cons of Building a House
Building a house can take a lot of time, from several months to a year, or more. It'll take even longer if you live up north, where winters are brutal.
Building a house also requires significantly more commitment than buying one. It's not just money you commit. It's sweat, tears, and quite possibly a little blood too.
Managing workers and contractors is stressful. And dealing with cost overruns and unexpected challenges is normal.
And don't forget about the yard. It's not just the house you're building, but everything surrounding it, including driveways, drainage, lighting, and whatever your property needs.
It's true that the finished product when building is usually better than buying, but there's a lot of sweat equity between you, the empty lot, and the beautiful home you've designed.
Again, it might be worth it if you plan on living in it. But if building and selling it is your action plan, you may want to reconsider.
Pros of Buying a House
The most obvious pro of buying is that it's faster and easier. In addition, you don't have to pay for land, labor, and materials.
Also, an older home will likely have a mature yard that's difficult to replicate when you build a house.
Budgeting when you're buying is easier because your costs are better known. Also, if you have a set amount to spend with few options to expand your budget, you'll have much less stress buying a house instead of building one.
Cons of Buying a House
Existing homes have problems, especially if you're buying a distressed property to renovate.
Unless it's a new house, you could have any number of issues. For example, a friend of mine bought an “almost” new house (just a few years old) and discovered a problem the inspector had missed. A few months after owning it, he noticed the roof being pulled up and off the upstairs walls on one side of the house.
Apparently, the house was settling on the other side and pulling that side of the roof down with it. That, in turn, caused the other side to lift.
An inspector would have had to remove the crown molding to find that problem, which an inspector is obviously not going to do.
When you buy a house, you might have problems with electrical, plumbing, appliances, etc.
There are many unknowns when buying a house. Of course, you'll most likely get it thoroughly inspected, but as demonstrated by the example above, there are always surprises. Especially if you're buying a fixer-upper to flip for a profit.
So, although buying may be easier and cheaper, there could be long-term maintenance issues and hassles in the long run.
Where Do You Learn How to Build a House?
There are many ways to learn how to build a house, but the best is arguably just doing it. You can read about building homes, watch YouTube videos, and even go to school… but the only way to get good at it is to do it.
Of course, it doesn't have to be your own house. You can work for a builder or help someone you know to get experience. You can also get indentured as an apprentice.
But leading a project of that magnitude may require more than you expect.
Building a house requires legal and technical knowledge and practical skills.
Are you starting with construction experience?
Are you familiar with building regulations, zoning laws, etc.?
How and where you learn to build a house depends largely on your current skill level.
If you're a complete beginner, a great place to learn what you're in for is YouTube…
Also, you can find YouTube videos to guide you at every step along your home-building journey, whether it's installing windows, painting walls, or landscaping.
It's also important to decide which type of house to build so that you know where to begin. What you need to know for one house might not apply to another.
Here are some common examples…
Modern Homes
Modern houses use more concrete, glass, and metal than traditional houses. They also emphasize clean geometry with a minimalist style.
They are usually more expensive to build than traditional homes because their open floor plans require more durable construction materials.
Craftsman Homes
There are different types of craftsman homes, including four square, bungalows, mission revival, and prairie style. Each offers its own unique benefits.
Craftsman homes are a popular choice for homeowners, especially among young couples who prefer the look and feel of traditional American architecture. These homes usually feature open floor plans, large windows, and spacious rooms.
They are also expensive to build because of the detail and high-quality materials they require.
Traditional Homes
Traditional homes are what most would associate with your typical suburban house. And they are the most popular style of home in the US.
Traditional homes have solid foundations, sturdy walls, and strong beams, but not necessarily to the high standard you'd find in a modern home.
Also, traditional homes are typically constructed with brick, stone, wood, and concrete.
Because traditional homes use common materials and standard-sized windows, doors, etc., they are generally less expensive to build.
Ranch-Style Homes
Ranch-style homes are popular because of their open concept living space and the natural light. They are usually built with large windows and doors that let in plenty of sunlight.
They are generally constructed of brick rather than wood and are easy to build (and maintain) because of their single-story design.
The downside of building a ranch-style home is that you'll need a larger plot of land than you would for other types of houses.
Colonial Homes
Colonial homes have been around since the 17th century in North America. They are known for large rooms, wide hallways, and tall ceilings.
They are one of the most cost-effective homes to build because of their symmetrical geometry, smaller foundations, and smaller roof.
Cottage Homes
Cottage-style homes are often smaller than traditional houses, making them perfect for families who prefer living close together. Cottages tend to be built with wood, brick, or stone exteriors and feature large windows and open spaces.
They can be cheaper to build than traditional homes. However, that's not always the case because cottages come in various shapes and sizes. A large cottage with durable materials, tall ceilings, and an expansive floor plan can be very expensive to build.
In addition, cottages are usually built in harder-to-access areas. This increases the time and cost of getting labor and materials to the construction site.
Tiny Homes
Tiny houses are becoming increasingly popular, especially among young adults who love the idea of living smaller while saving money. They are usually less than 400 square feet making them the least expensive type of home to build.
You also don't need a large plot or expansive foundation. In fact, many tiny houses are built on trailers and can be moved anywhere.
Another benefit to building a tiny home is that you can buy prefabricated kits and reduce the cost of construction personnel.
Is It Hard to Build a House?
Building a home is no easy task. The purpose of this article is not to discourage you, but going into a project of this magnitude should be done with complete awareness. Sugarcoating would be irresponsible.
Any number of unexpected scenarios can occur.
There are many decisions along the way, including choosing the type of construction material, hiring contractors, and deciding whether to hire a general contractor or do it yourself.
Don't underestimate how much effort goes into building something as complex as a house. Some things you need to have at least some knowledge about are:
- Zoning laws and building regulations
- Buying and assessing undeveloped land
- Insurance
- Construction plans
- Concrete and foundations
- Framing
- Insulation
- Major systems such as heating, ventilation, electrical, and plumbing
- Roofing and drainage
- Exterior finishes
- Drywall, molding, and lighting
- Interior finishes, paint, etc.
- Flooring and carpets
- Landscaping
And these are only related to the actual house. Building a home is also a project that involves budgeting, dealing with contractors, managing workers, and logistics.
As I said, the purpose of this article is not to discourage you but to inform you.
Despite the challenges of building a house, it can be tremendously rewarding when you're finished. Not only the house but the skills you've acquired. The challenges you've overcome.
Speaking of challenges, another challenge to consider is financing.
Lenders are less likely to loan money to first-time home builders. Therefore, you'll risk collateral (such as your current home) or your own money.
In either case, that will add significant pressure to an already daunting task.
So, yes, building a house is hard.
It's a lot easier if you have experience and of course, new houses are built every day, so it's certainly not impossible.
But if it's your first house and this is something you want to do, you must start somewhere. Now might be the right time.
How Much Money Do You Need to Build a House?
The average development cost to build a home varies widely depending on many factors, including your region and ability to finance the construction.
Labor and materials will likely be your biggest expense. And the cost of each will depend on a handful of factors, including…
- The size of the house – Of course, a large house is more expensive than a tiny house. The lot size also matters. Building up is generally more expensive than building out, so the cost per square foot will likely be higher if you only have a small plot of land.
- Type of construction – Building a custom home is pricier than choosing from pre-built models. Builders must design the entire structure from scratch rather than selecting from existing options. Custom homes also require more skilled tradespeople.
- Location – Homes built in warmer and drier climates cost less than those built in colder regions. This not only applies to the materials you use and the design but also to the construction itself.
As an electrician who has worked in temperatures colder than minus 30, I can tell you that progress is significantly slower in the winter than in the summer. If you're paying contractors in those conditions, expect to pay more for less. - Market conditions – The cost of labor, lumber, and other building materials vary depending on the current real estate market and the overall economy. For example, in a strong economy, it might be challenging to hire people. And the people available to hire might cost you even more money due to a lack of skills and experience. Likewise, you may find highly skilled tradespeople in a weak economy at lower rates.
- Your builder – Who is building your house? Are you building it yourself or hiring contractors? The cost will be less if you're an experienced builder who plans on spending countless hours hammering nails and sanding drywall. On the other hand, if you have a full-time job elsewhere and plan on hiring workers, it will cost significantly more.
At a minimum, you will need as much money to build a house as you would if you were buying a similar home in the same area. You may spend less depending on various factors, but you can't count on that.
It's just as likely you'll spend more.
Someone getting injured or an unexpected weather event can derail your progress. Of course, you hope neither happens, but the last thing you need is to run out of money before the project is finished.
The Cheapest Types of Homes to Build
The cheapest type of home to build is a tiny house. These houses are small (usually no bigger than 400 square feet), inexpensive, and designed to be constructed quickly.
You can also purchase prefabricated kits, and for first-time home builders and sellers, these are a great way to start this type of business.
Another cheap home to build is a shipping container home.
Shipping containers are large metal boxes used to ship goods across oceans and come in sizes ranging from 20 to 40 feet long.
Shipping container homes lower your development costs significantly and are incredibly versatile. They are also much quicker to build than a traditional house and require less labor and building materials.
A 40-foot shipping container can be purchased for roughly $2500 – $5000.
If a traditional home is what you want to build, a prefabricated one is your cheapest option. These homes are manufactured at factories and shipped directly to your site. They take longer to build than tiny homes and shipping container homes, but they still go up quicker than starting from scratch.
Also, since prefabricated homes are factory-made, they meet building codes and standards.
An ADU (accessory dwelling unit) is another option to consider.
ADU's are prefabricated homes bigger than tiny homes (up to 1000 – 1200 sq ft) but smaller than the average single-family home.
They are typically used as secondary homes on existing properties but don't have to be. In fact, prefab ADUs have become so popular that even Dwell magazine has started selling their own ADU in partnership with Silicon Valley builder Abodu and the Danish firm Norm Architects.
How Do I Begin to Build a House?
Start With a Budget
Before beginning construction, you must determine precisely how much money you plan to spend. Therefore, you'll need a proper budget and a solid plan.
Several factors influence this decision, including the type of home you'd like to build and where you want to build it.
You must also decide whether to borrow from the bank or self-finance it. Maybe a combination of both.
Self-financing allows you to save money on interest payments but requires substantial upfront cash.
Building and selling a house for profit is a significant project; whether you think of it as a business or not, it's best to treat it like one.
Determine Your Role
Do you plan on doing most of the work yourself or managing a team of contractors?
It's easy to get overwhelmed and it's tempting to tackle each task yourself. But unless you have experience doing construction projects, hiring real estate professionals to handle specific tasks might be worth considering.
Having confidence in your ability is great, but be honest with yourself. Do you have the skills to complete the job correctly?
Do you have the time?
Can you learn enough on the job to finish the project on your own?
Also, you don't need an entire team to complete a single project. Instead, you can divide the work into smaller jobs and hire different contractors for each part of the project.
Choose The Type of House
Choosing the type of house you want to build is a huge decision. There are several factors to consider, including cost, location, and design. Choosing the wrong type could make it difficult to sell once completed.
And, even though your plan is to build and sell, circumstances may change. For example, depending on the market conditions when the project is complete, it may be more profitable to rent until your asset appreciates over time.
Another way to profit with real estate is to use your home for temporary rentals on Airbnb.
In that case, you must factor maintenance costs into the type of house you build.
Your choice of location also influences the type of house you build, and vice-versa.
Research Zoning Laws Before Buying Land
Before you buy land, it's important to research local zoning laws. Zoning laws dictate whether certain types of buildings can be built on a piece of property, the size of a building, etc.
In some cases, new residential construction may be prohibited altogether, even though existing homes are nearby.
Because zoning laws vary widely depending on location, it's critical to learn what you're up against before purchasing.
Take a Beat and Reassess
You're about to make a big decision. At this point, it's always good to take a beat and reassess whether you're up for it. Building a house will be exciting, and you will acquire a wealth of valuable experience and skills along the way.
But it's also a commitment. It will likely consume many months of your time and attention, if not more.
If you're ready to start, your next step is to purchase land.
Purchase Land
Land is a significant investment, and you must choose wisely. Before purchasing, consider whether the property is located near public transportation, schools, parks, shopping centers, etc.
And as mentioned above, make sure you're aware of all zoning laws and restrictions.
It's also wise to consult a real estate professional specializing in residential properties. They can provide valuable insight into local market conditions and help you avoid costly mistakes.
Choose Your Architectural Plan
Choosing an architectural plan is the next step if you haven't done it already. You may have an idea of what you want and even have it sketched out. Now it's time to finalize that plan.
Choosing the wrong plan could cost you thousands of dollars and weeks, if not months, of extra effort. Spend whatever time you need to make difficult decisions about what you actually need and what would just be nice to have.
Depending on your local building authorities, you may not need an architect for this step. Instead, you can purchase ready-made house plans that are structurally sound and allow for customization.
Before choosing a plan, it's important to know which market segment you're hoping to sell your house to. For example, if you've purchased land near a school, there's a good chance your target market will be younger families with children.
In that case, it would be wise to choose an appropriate plan.
Apply For Proper Building Permits
Building permits are required for construction projects in most areas, including residential buildings. These permits allow builders to obtain permission to construct a structure.
Contact your city hall or county office and consider hiring a professional architect or engineer to assist you in completing the permit application.
You'll want to get this step well on its way before putting time and money into your project. Chances are there won't be any issues, but if there are, you want to know about them ahead of time.
Research Contractors
At this point, you may have started to research contractors. Due diligence is absolutely critical here.
Before signing a contract, take your time and research the following criteria:
- Licenses – Check to see if the contractor holds licenses in the state or province of the project. Some states require contractors to have specific licenses depending on their job.
- References – Ask for references from previous customers. Contact them directly and verify their satisfaction with the service provided. Ask questions about the quality of the materials used and the craftsmanship of the finished product.
- Workmanship and Quality Control – Ask to see examples of projects they have completed.
- Insurance – Find out whether the contractor carries insurance and what type of coverage they provide. Confirm that the policy covers construction accidents.
- Warranties – It's essential to determine what guarantees the contractor offers ahead of time. Warranties cover repairs and replacements for parts used during the construction process.
- Milestone Payments – Ask about payments and milestones. Some contractors might demand the entire payment upfront, but it's important to set milestone payments to mitigate delays and ensure they deliver the level of quality agreed upon. Milestone payments also build trust with your contractor, so they don't worry about doing work they won't get paid for.
Clear The Land
Before beginning construction, you will need to clear the land of debris and other obstacles. This includes clearing trees, bushes, rocks, etc., and ensuring that the area is safe for building.
When cutting down trees, avoid damaging nearby power lines and underground pipes. Once the trees are removed, you'll need to clean up debris left behind.
It's also essential to determine if the property has any existing underground utilities, including water lines, gas pipes, electrical wires, and sewer lines. These items may pose a significant risk, so it's best to avoid digging until you've identified everything and cleared the area.
Level The Land
Before building, you'll need to level the land. This involves leveling off uneven areas of the ground and filling in holes. There are several different methods for doing this, but whichever you choose, do it properly.
If done improperly, it could damage the foundation and structure of your home. This is one area where hiring professionals is a good idea.
Begin Construction
It's finally time to break ground. It's been a long journey already, and this is the moment when your project really begins. Of course, there will be things to learn along the way, but hopefully, you've researched the build process and defined everyone's roles. You know what you're doing and what the contractors are doing.
Running Out of Money
Expect the unexpected. As prepared as you are, you will run into unpredictable obstacles and challenges. Especially if this is your first build.
No one wants to give up on a project before it's finished, but there are times when a tough decision like this must be made.
So what do you do if you run out of money?
You could sit on the property indefinitely, but that'll depend on how you've financed the project. Unfinished construction exposed to the elements for long durations isn't good either.
You can also find a real estate investor or flipper willing to take over the project.
Depending on the stage of construction, a real estate flipper may find your project easier and more profitable to finish than to buy a distressed home and fix it.
This is a quick way to recover your investment. According to Attom Data Solutions, in the first quarter of 2022, 62.7 percent of homes flipped were purchased with cash. So there are home flippers with cash in hand looking to finish a project like yours.
Having said that, the hope is that you don't find yourself in that situation. The hope is that you build your house as planned and then sell it.
How To Sell a House
Find a Real Estate Agent
When selling a home it's a good idea to lean on a professional. Hire an agent who knows the market and will act as your advocate throughout the process.
Of course, you'll want to look through the MLS listings yourself to determine a fair asking price.
When choosing an agent, trust is critical. If you don't already have an agent or know one… ask friends and family members. You can also search for reviews online.
Stage Your Home
Staged homes tend to receive more attention from potential buyers and usually sell faster. And staging a home is critical to attracting buyers who first see your house online.
Since this is a newly built home and no one lives in it, you have a blank slate to work with. Your best option in this situation is to hire a staging company.
Staging companies are experts who help homeowners prepare their homes for sale. They stage rooms and make the home look lived in and beautiful. In addition, they know how to make potential buyers see themselves living in the space.
While a staging company for an entire house could set you back several thousand dollars, you will likely sell your home quicker at a higher rate. And it's cheaper than furnishing the house yourself.
Of course, it also depends on the current market conditions. For example, this step may be unnecessary in a seller's market where buyers are lining up and bidding on homes.
Get Professional Photos
Professional photos are essential when selling your house. Not only will they make your home stand out among other listings, but they will also help your buyer imagine what their lives will be like living there.
Save yourself time and effort, and hire a photographer who specializes in homes. Ask to see their portfolio and settle on prices and expectations ahead of time.
Working with your photographer and agent, they will help you choose locations that highlight the best features of your newly built home.
Set Your Price
You may be tempted to set a low asking price, hoping it will increase your chances of a quick sale. But that can actually hurt your chances of finding a buyer.
It may sound counterintuitive, but based on research, homes listed lower than the median price are often viewed as having problems. In contrast, homes sold for more were seen as desirable.
According to real estate experts, buyers tend to look for homes priced within 10% above the median sale price in their area.
Of course, your agent will suggest a realistic selling price.
As a builder and seller, you're in a unique position. You may or may not decide to sell your house at this point because you know exactly how much profit you will make.
Market conditions could have changed negatively, and it may be worth less than what you've put into it. Or, maybe there were unexpected construction costs.
In that case, it may be better to keep it and rent it or Airbnb it until the market turns in your favor.
If you're expecting a profit, though, your next step is showing it.
Host an Open House
Another advantage to selling a home you're not currently living in is open house showings.
Open houses are a great way to generate leads and attract potential buyers. In addition, it allows you to showcase your property while allowing others to learn more about the neighborhood and imagine themselves living there.
This is another step where working with your agent is your best option.
Have Someone Else Show Your House
Have someone else (most likely your buyer's real estate agent) show your house. Whether an open house or an individual showing, letting a real estate agent present is wise.
This gives potential buyers a chance to see the home and ask questions without the distraction of you (the homeowner) being there. They may have concerns about the space or things they don't like, and having you there may make them uncomfortable.
And even though it's a new house and you're really only the builder, it's important for them to only imagine themselves living there… not you.
Review, Negotiate, and Accept Offers
If you receive multiple offers, it's essential to review each offer carefully and determine what makes them unique. There are many factors in addition to price that you may want to consider when reviewing offers, such as…
- How the buyer is paying
- Down payment amount
- Pre-approval letter
- Documentation supporting the purchase price
- Financing terms
- Closing date
Sometimes, your agent may have had a positive or negative experience with your buyer's real estate broker, which could also influence your decision.
From here, you can either accept the offer, make a counteroffer, or reject it.
Which one you choose will depend on several factors, including the offer amount, the number of offers you've received, how long your house has been on the market, etc.
Sometimes the easiest thing to do is accept the offer, even though a counteroffer would be better. It will depend on whether you have leverage.
These are things you won't know until the time comes.
Keep in mind your closing costs. You must pay your real estate agent's commission, approximately 5 to 6 percent of the sale price. Other costs to consider are the transfer tax, real estate attorney fees, and recording fees.
Where Do You Go From Here?
Building a house from scratch is a huge undertaking, but if you know what you're doing, it can be profitable and satisfying.
If you're overwhelmed, you're not alone.
You can ease into it by building a tiny house or prefab ADU.
Starting out by flipping a few fixer-uppers is also a good way to acquire the skills needed to start a house-buying and selling business.
Regardless of the path you follow, the most important thing you can do is plan carefully. Do everything you can to make sure you can finish what you start.
Take a full inventory of your finances, resources, and skills. Put your plan on paper and set a detailed budget. Talk to family and friends and find out if you have their support. And maybe the most important thing… have fun with it.
