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Building a home from the ground up is a major undertaking that comes with many emotions. Homebuyers must set these emotions aside and approach the project logically to reduce the risk of problems. While designing the home is exciting, it won’t be as thrilling when the project is delayed or halted due to problems. What are some common mistakes homebuyers make when requesting a home be built to their specifications?
Not Requiring Paperwork
Builders might offer free quotes. However, the buyer must pay for an estimate to get an accurate picture of the cost of building the home. The initial quote is provided when the builder makes a rough estimate based on the square meterage of the house. This quote will change once the builder spends significant time on the property and better understands what the homebuyer wants and needs.
If a builder suggests proceeding with the process based on the price provided in the quote, be wary. Budget irregularities will likely become an issue. To account for these irregularities, the builder must either lower the work quality or increase the price. Either way, the homebuyer will lose.
To avoid this problem, a detailed estimate of the project’s scope, cost, and other details must always be required. Request a Full Bill of Quantities so there are no surprises. This one step reduces the risk of cost overruns, an unhappy homebuyer, and other problems. This paperwork must always be required to prevent problems from arising as the project moves forward.
Choosing Based on Price
Never choose a residential builder in Melbourne based on price alone. A low quote signals that the builder is cutting corners to make the price more attractive. They might use low-quality materials or get them from overseas sources with less stringent manufacturing requirements.
The builder might cut corners during construction to keep costs low or hire cheap labor. Homebuyers want quality labor and materials to ensure the job is done right. However, the builder could use quality labor and materials and find ways to make up the costs in other ways.
Hidden fees are a concern when working with a Melbourne home builder. The initial quote might not include charges for land registration fees, soil testing, and other services required when constructing a new home.
Work with a builder committed to being honest, transparent, and up-front about all project costs. Doing so will save heartache and financial difficulties as the project progresses. Any very low quote should be given a second look.
Not Watching Out for Fluctuating Fees
Builders often estimate the cost of building materials and supplies. While this is understandable, as prices in the construction industry fluctuate, builders might take advantage of this. They may alter the quality of the materials and supplies and increase the project's price.
The builder will include terms like prime costs or provisional sums in the contract to ensure they are covered, and the buyer will be liable for the additional costs. This is where the buyer must be proactive. They need to negotiate a price range they are comfortable with. Fixed fees are needed to avoid problems such as this.
Some buyers don’t feel comfortable negotiating fixed fees with the builder. Bring in a third party to handle the process. Doing so ensures the builder won’t purchase expensive supplies and materials and pass the cost on to the buyer.
Ignoring the Building Inspection
The builder typically hires the private certifier when the project is complete. However, based on the contract, this might fall on the buyer. Regardless of who hires this individual, they should ensure the structure is in compliance with building plans and industry standards. The residence must comply with all aspects of the Building Code of Australia (BCA) and local building codes.
Building defects may happen, even with reputable builders. This inspection helps to catch the defects early so the builder can correct them at no cost to the buyer. In addition, an insurance company might require this inspection before writing a policy on the home. The inspection covers the insurance company if problems later arise that can be attributed to the builder.
Not Researching the Builder
Never hire a builder without doing thorough research. Before signing a contract with any Melbourne home builder, verify their credentials. Many localities offer an online licensee search feature, so doing so won’t be difficult.
Furthermore, testimonials should be requested from clients who have worked with the builder. They can share information about the timeliness of their project, whether it went over budget and more. This firsthand knowledge can help a buyer decide whether to work with a particular builder.
However, builders may only provide testimonials from satisfied customers. Read online reviews and testimonials, as well. They may offer a different perspective on a particular builder. A buyer cannot have too much information when making this choice.
Building a new home is not a quick and easy process. Prepare to spend months planning the project before any work begins. Find the right residential builder in Melbourne to simplify this process. Doing so will ensure you get the home of your dreams.