Why its important to get a fixed price when building a new home

Why its important to get a fixed price when building a new home

Getting a final price when looking to build a new home would seem to be a simple request – and a vital one.

Yet so many first, second and third home builders find it difficult to get their final building costs out of their builder.

It makes no sense to sign a contract and hand over your money until you know what your home’s construction costs will be. Especially when there are so many variable like: soil test, site surveys and levels that can throw your budget out.

For many people paying a deposit gives a sense of relief, the dream of living in your new home seems within reach and you can start to imagine your new life.

Yet building a home without a fixed price often results in tears and thousands of dollars in unexpected costs.

Unfortunately there is every likelihood that you will not get a final price until weeks or possibly months after signing your contract and often you can be lumped with additional fees. Too many people find out to late that they have to raise extra money, and if they can’t, start the long process of trying to get their deposit back.

You can avoid this nightmare by:

1. Taking great care when choosing your builder.

2. Not paying a deposit until you have all the tests, reports and as much of the contract fixed as possible.

3. Not being shy and asking for their best price upfront.

4. Specifying changes or upgrades to your home before paying a deposit, as this is when you have the most negotiating power.

More like this?

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How to tell if your home builder shapes up after signing your contract?

The information provided in this article is of a general nature only and in no way constitutes legal or professional advice, or specific advice in relation to any finance. In all cases we recommend you receive professional financial advice for your own personal circumstances. 

Ben Everingham

About

Ben founded Pumped On Property after building a multi-million dollar property portfolio over a 5 year period. His mission is to show you how to replace your income through property investing so you can do what you love…full time.