REAL ESTATE
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Builder’s share: Ever wonder how much money a builder makes on each new home?
The information is hard to come by because most builders are private. But in a recent report on publicly held J.M. Peters Co., stock analysts Barbara Allen and Alan S. Goldman report that the company’s average profit per house worked out to about $30,500 for the fiscal 1989 third quarter, which ended Nov. 30.
The Kidder Peabody & Co. analysts estimate that for the entire fiscal year, Peters will make $30,987 on each of the 810 homes it will sell--at an average price of $380,000.
Allen says that 8.1% is a good profit margin but is not among the best. There are builders in the East, she said, that pull down 12% or more because they speculate on the underlying land as well.
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