Quote:
Originally Posted by petsetc
I think the profit on the home sales is much higher, maybe approaching 50% in the good years (I base this on info from a friend that used to sell for a major builder).
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I would be shocked to see there was any major builder in the USA, making anywhere near close to 50%.
Typical construction profit margins run in the 7%-15% range.
Development profit runs in the 10%-15% range.
Selling Commissions (using in-house vs MLS) will typically yield 2%-3%.
About the only time you see a major change in profit margins, is when land values go through a period of sudden inflation/appreciation and some landowners are caught on the right side of that curve.