The Hidden Gotcha’s of Builders promotions and discounts
The journey of building a new home is a thrilling experience, you have lot’s to decide upon, and often time you can make some mistakes that can actually turn out to be very costly in the long run, hindsight is 20/20, and knowing these unforeseen costs in advance can be absolutely vital to your success when building your new home, No-one likes to get hit with a massive bill they weren’t expecting at the end of your new build. Below are a few key things to look out for when working with your builder.
Alterations to the initial scope
This is by far the largest unforeseen fee that can be created during a build especially if it’s your first time building a new home, Unfortunately changing items costs money and that will need to be paid in order to receive the change you would like, common increases include items such as material upgrades or small changes to the structure of the property while small changes may not seem much, combined they can create a large fee. To avoid this you should read your contract carefully and be very upfront with your builder during your initial meetings to ensure you know where you stand in the case of additionals.
When researching your new home build you come across what seems to be a really good discount from a builder you were looking at but you start to think is it too good to be true? Today we are going to discuss the topic!
In Short, Yes you need to be very careful when reviewing these offers as oftentimes they are designed to get you over the dotted line and trap you in with hidden fees.
The most common Item we see when builders are offering discounts in the thousands of dollars is that they recoup the costs by having very high variation costs or they may be getting commission from finance providers they will give you the option to choose from, more often than not though these companies don’t make much profit and in-turn shut down and close, Have you ever thought about what happens if this occurs mid-build? It’s not a great situation to be in and can be very costly.
The next thing you may ask yourself is this. Why do they do these promotions rather than just being upfront? Well as humans we love promotions, We love the idea that we are getting a “good deal” even when oftentimes we are not, This is something that builders know very well and can often prey on. Always keep this in mind when reviewing any “offer” you may see no matter how good it seems.
Delays are often something many people do not consider could incur extra fees during your build process. common delays include the weather, change of materials, late payment on your behalf.
Always be sure to get an exact idea of potential fees for different types of delays and you may also be able to get some delays excluded in your contract if you are to enquire about it and discuss what can be done to mitigate the potential delays.
Renovations versus Rebuilds
Many people believe that renovating a house is much cheaper than rebuilding it but this is not always the case, it is acknowledged within the industry that often times it can actually cost more to renovate rather than rebuild!
If you are thinking about renovating it is always a good idea to get a quote for a rebuild just to be sure!