When you’re looking to build the home of your dreams, it’s far too easy to blow the budget way out of proportion and end up having to pay extra for things that weren’t factored into your quote. To help you avoid this and other pitfalls, we’ve broken down the five key questions you need to ask when getting a quote from a builder:
Do You Have Experience In The Area?
The first thing you’re going to want to ask is whether they have experience working in the local area. Builders who know the climate and landscape are far better equipped to provide a comprehensive quote with no surprises or miscalculations. If you’re building in Torquay, for example, you may be tempted to go with a large, Melbourne-based builder, but what you really need is someone who understands the unique design essentials and materials needed for coastal environments. So, you’re probably going to have a far better experience if you instead seek out the best local builder Torquay has to offer.
How Much Is The Deposit?
Another question to ask is how large of a deposit is required for the work to commence. This is particularly important for those who will be mortgaging their land and house separately as you’ll need to build up your deposit again after securing your land and before engaging a builder. Keep in mind, however, that it’s equally important for people in other situations as deposits are often non-refundable, even if problematic circumstances arise that are out of your control.
What’s Included and What’s Not?
This is one of the most important things to confirm before moving forward on a quote. You need to know exactly what is and isn’t included. Never make assumptions because you’d be surprised at what can slip past you. For example, some builders include landscaping, driveways, and other exterior work while others either consider these to be extra services.
It’s also crucial to note that just because something appears in a display home doesn’t necessarily mean it’s a standard inclusion in all the homes the builder creates. With this in mind, it’s always best to ask upfront so any alterations or arrangements can be made without the stress of having to start over with something or rush an element through.
What Key Legal Information Should I Be Aware Of?
Another thing to consider is what clauses are present in the contract. While it’s always a good idea to have a local Victorian legal professional look over any contract before signing, asking your builder what key legal information they feel is most important will tell you two things – which points they value most within the contract and how transparent they are.
Have You Accounted For Tax?
Finally, if you’re building for business or investment purposes, there is a possibility that your builder may be quoting you ex GST amounts. While this is perfectly fine as long as you’re aware that it’s happening, it can throw a major spanner in the works if you find out at the end of the build that it actually cost ten per cent more than you thought it was going to.
We suggest chatting with a tax accountant as you’ll also be able to discuss what deductions and offsets will be available. This may allow you to increase your budget if needed or desired.
This list is by no means exhaustive, but it does give you a good idea of where to start and what to ask when building. We hope you love your new home!
