Wow isn’t this the big question of the time.
I can’t tell you the number of times people have come back to us late in the piece (often when it’s too late) and said they should have built with us because that cheap price they got from the big project builder has blown out through variations and site costs to be more expensive than our price.
See, when a builder advertises a cheap price for a new home, you are only getting a very small portion of the story.
I have seen homes advertised for prices that I know are below the builders’ cost to construct, especially when you factor in their ridiculously high overheads
This calls into question how a large builder makes this type of home profitable, and the answer is simple, they make it up when you do variations, often relating to your site works.
I have heard stories of people being given one price for a variation by the salesman prior to contract, and a price twice as expensive after the client is locked into that same contract. For the same variation. It’s all about getting that signature on that contract, and after that happens, anything is fair game.
Coastline Homes doesn’t do any of that. We are a small company, and we don’t have those project builder mechanisms in place to vary costs like that. Our pricing is the same, regardless of how committed you are to us at the time.
I have also seen contract after contract (those same clients have brought them to us asking how they can get out of it) from large project builders with costs (often Provisional Sums) added after the fact for things like:
- Upgrade of engineering detail (when the builder should know what detail is required in that area from the outset)
- Re-peg of the block (a requirement of nearly every project)
- Site cleans and on-site bins (something every home advertised should include since they are a requirement of every build)
- NBN connection/ Home readiness
- Telstra conduits (again necessary on every home)
- Access tracks and concrete pumps
Even more disturbing, I have seen the prices of these items blown out of all proportion.
We have had instances where we are building directly next door to a project builder, and our site costs have been one third (no exaggeration) of what the big builder has charged the neighbour.
I recently saw an upgrade for a footing detail (which should have been priced in the home in the first place) from a very prominent Bunbury project builder for over $6,000 when our price for the same item was $800.
At Coastline Homes we work a bit differently. Because we don’t put our clients on a conveyor belt, so we can help you manage your costs in any way you want.
We will fully price your site costs and services before we ask you to sign a building contract.
If you want, we will even do your prestart with you and price every last variation you have before we ask you to sign a building contract.
In this way you will know every last cost for your home before you commit to us to build, and that’s the level of service you should as for from any builder, don’t you think?
Director Coastline Building Group WA Pty Ltd