Have the correct foundations and slab type been quoted for your block of land?
- There is a large price difference between the different types of slabs. It is important to check whether you have been quoted for an ‘S’ ‘M’, ‘H’ or ‘P’ class slab, & compare this to what is actually required for your land.
- Check that the MPA slab concrete you have been quoted is correct for your block e.g. 25 MPA , 32 MPA.
Some builders exclude expensive costs from their advertised prices. Does the price include:
- Site costs
- Council fees
- Basix requirements
- Bushfire (BAL) requirements if applicable
- Home Warranty Insurance
- Drop edge beams
Are the items in the builder’s display home standard inclusions or expensive upgrades?
Ask the builder for a complete list of upgraded items in their display home.
Some builders add large margins for any upgrades
so ensure you get a quote for any upgrades you are considering before signing a contract or paying an initial tender fee. Or the final price for your desired home may end up a lot expensive than you initially budgeted.
How long is the price fixed for your tender?
If the tender date will expire before construction can commence, your builder can increase the price. It is important to know that the tender is fixed for enough time to allow for:
- Your land to be registered (if you are buying unregistered land)
- For approval by the local Council or private certifying authority
- For your bank or lender to issue you with the authority to start
If due to delays the fixed price tender does expire, what will the price increase be?
Some builders ask you to pay a tender fee prior to giving you a tender
This means the verbal price or initial quote provided to you may change after you have handed over money to the builder, and you may not get this money back even if the tender price differs to what has been quoted. Ask your builder to provide you with a no cost tender – and if they won’t do this, ask yourself why they are trying to get money to lock you in before providing anything in writing to you
Don’t fall for the ‘free upgrades’ and ‘limited time offers’
that some builders advertise to try to get you to sign with them. Some builders continually offer the same promotions, but will tell you that their limited time offer is expiring in order to pressure you into signing a contract or paying an initial tender fee. Plus rarely do you get something for nothing – most of these promotions are actually priced into the cost of the home.