Why you should never choose the home builder on the Gold Coast or Sunshine Coast with the lowest price.
What should you look for in a builder when you set out to create your dream home in the beautiful and much sought after South East Queensland?
Some people look for a builder with proven experience and top quality designs and service… While others simply go for the cheapest quote… Some even look for both… Choose the cheapest builder though, and there are consequences!
In this industry, the builder who provides the lowest quote has either missed items out of the contract, or they are so desperate for cash flow that they are cutting their margin to zero in order to pay off existing creditors using your money.
And what do you think happens next?
If you think a builder who makes mistakes on their quote or has cash flow issues is not your problem, think again…
When you sign a contract with these types of builders, the only thing on their mind is “I need to get through this job as quickly as possible, and sign a decent contract where I can earn some money!”
…And that’s a real problem for you if you are hoping to get a quality home as well as the lowest price….
So in this blog article, I’m going to reveal exactly why you should NEVER choose the builder with the lowest price.
It’s a safe bet that when a builder is desperate for cash, they will agree to anything you ask for just to get you to sign a building contract. They will even drop their price just to get you to sign.
This is a massive red flag.
Residential construction is high risk and low margin for builders, so if a builder agrees to reduce their price it usually means one of two things:
Either they were taking you for a ride in the first place to see if they could get anything extra out of you… Or they simply have no idea about their numbers and their main focus is on getting some cash into their bank account so they can satisfy the list of creditors who are chasing them for money. If you sign a contract with a builder like this, you will end up with substandard work, delays and in some cases, an unfinished home. The only way you can avoid ending up in a situation like this is to invest some time into research to make sure you find the RIGHT builder. When you invest your time in research, you know the right questions to ask…and you become what we call in the industry, an ‘EVOLVED’ client. Every builder wants to deal with an evolved client.
So, how do you become an ‘evolved’ client’?
The first thing to do when looking for builders in your area is to make sure you look for a specialist. You should avoid the jack of all trades. If they say they do new homes, renovations, extensions, commercial and industrial… move on!
The builder that claims they can do everything is a master of nothing, and their lack of experience will show when it comes to your particular style of home. If you’re building a custom designed home, look for a builder that only does custom designed homes. If you need a renovation, create a list of the builders who solely focus on renovations. These guys are specialists, they have much more experience and know exactly what to expect. Importantly, their trades are also experienced in a particular area of construction so the job will be smoother, encounter fewer delays and have a much more professional finish at the end.
The second thing you should look for is if they have an interactive website with details and examples of their previous projects? You want a builder to be proud of their past projects, showing off what they can provide you.
Next, ask them questions using different channels to see how well they respond. Send an email one week, make a phone call the next and arrange a site meeting to discuss your project. The key things to look out for are if they turn up on time, do they answer their phone and return missed calls? Do they respond to emails when they say they will?
The service you get through the sales process is a good indication of the service you will receive once a contract has been signed. So if a builder fails to return your calls or reply to your emails before you sign a contract, move on. Don’t waste your time chasing up an unresponsive builder because you will find yourself forever chasing them even once you’ve become a client. Another important factor to consider is the advice they are prepared to offer before you become a client.
This is a great opportunity to ask your builder plenty of questions, not only do you get more useful tips and advice, but if they are trying to hide something, it will very quickly come out once you start asking questions. A professional builder will freely offer advice regarding design & specifications and will happily connect you with their suppliers. Use this opportunity to speak to suppliers and ask them about the building company. It’s what they don’t say that is just as important as what they do say!
Finally, ask them about their build process and ask to see it in black and white
In this industry, a failure to plan is a plan to fail…
So before you set out to design your new dream home, make sure you are speaking to the right builders and don’t choose a builder just because they have the lowest price.
Click on the link below to take a look at our luxury home design range whether it is to get inspiration for your own custom home build journey or to start your next chapter today!