Are you wondering why the price to build your new home is so much more than the advertised base price of the display home that you have fallen in love with?
You might be considering signing a contract to build a new home because of the tempting base price.
So many people get sucked into signing on the dotted line unaware that the base price does not actually include important items needed to finish your home.
The home is going to end up costing you a whole lot more to finish when you need to factor in the extra costs that were not included in the original base price.
“If it seems too good to be true, then it usually is”
Touring display villages can be so exciting when you come across the home with that certain “wow” factor.
You might even be more excited to hear that the base price to build the home on display will fit within your budget. But, have you actually considered what is included or more so NOT included in that tempting base price.
Sometimes the house on display to build can cost almost twice the advertised base price.
Choose a builder who factors in ALL costs and gives you an honest and realistic price to build your home from the beginning.
Yes their price is going to be more than the base price of other builders, but you can feel confident that EVERYTHING is included and there will be no nasty surprises along the way.
Wouldn’t it be great to know that you will be able to move into your new home knowing that everything has been completed and you have not had to go back to your bank to ask for more money to complete your home?
Don’t be misled by the low base price to build your new home.
So why do builders advertise such a low base price?
Many builders advertise their homes at the low base price to entice buyers in. It is important to know that the base price will certainly NOT determine how much your home will actually cost fully finished.
Professional and honest builders provide thorough tenders which factor in realistic site costs and inclusions to complete your home.
Some people will think that Custom home builders are much more expensive than builders offering low base prices. This is not the case.
Builders will advertise low base prices to build a new home. They do this to suck you in thinking that you will get everything that is included in the display home that you have walked through and fallen in love with.
It is not until you start asking questions that you realise the lovely hard wood timber flooring on display is not included, nor are the stone feature tiles and freestanding bath in the bathroom or even the glass kitchen splashback – these are all upgrades.
What actually is a base price?
The base price establishes a starting point to build the home. The important word here is starting point. There are so many variables when building a home and it is important to begin with a base line of included features.
Often the included features in the base price are considered standard. And the base price between builders will differ as will the inclusions that they each consider as standard.
For example a 40mm stone benchtop may be considered as a standard inclusion for one builder where another builder will consider this as an upgrade. Therefore their base price will be lower as this has not been factored in as standard.
More often than not, the low base price will not have taken into consideration items like the site costs, council fees, design fees, flooring, driveways or any upgrades whatsoever.
Site costs will have the biggest variability. But a professional builder will be able to provide a fixed price for the site costs if they do a thorough tender based on soil and contour tests and a site visit prior to the presentation of any tender.
So be warned, if it is a fully completed home, that tempting low base price to build the home of your dreams will most likely turn into your absolute worst nightmare.
Everything you need to know is included in this free guide for consumers looking to design their new home, so you can get the home of your dreams without budget blowouts.