What Is a Base Price When Building a Home in Australia?

5th June 2023

Finance & Budgeting Pre-Construction Design & Trends Legal & Contracts First Home Buyer Investor Upsizing & Downsizing

Learn what a builder’s base price includes, which costs are usually extra, and how to compare standard inclusions and turnkey packages.

What is a Base Price?

A base price is the starting cost of a home design, representing the price of the floor plan and its associated standard inclusions. Builders calculate base prices based on:

• Materials and Labor Costs: The overall cost to construct the home with specified materials.
• Builder’s Margin: A set percentage added by the builder.

The base price typically excludes variables like:

• Site Costs: Preparation work for the block of land.
• Estate Covenants: Specific requirements from the land developer.
• Bushfire or Environmental Upgrades: Applicable based on location.

What’s Included in a Base Price?

A base price includes a set of standard inclusions, often referred to as a specification list. These inclusions vary significantly between builders, making comparisons challenging.

• Entry-Level Inclusions: Builders offering a lower base price may include only basic features.
• Premium Inclusions: Builders with higher base prices often include upgraded materials and finishes.

Examples of Standard Inclusions:

• Flooring (may vary in type and coverage)
• Ceiling heights (e.g., standard 2400mm/8ft or higher as an upgrade)
• Kitchen fixtures and fittings
• Bathroom features (e.g., standard vanities, taps, and basins)
• Roofing (may include basic tiles or Colorbond options)

How to Understand Base Prices and Inclusions

1. Review the Standard Inclusions Document:

2. • This detailed document lists all items included in the base price.

   • Look for specifics like brands, models, and materials.

3. Request Visual Guides or Virtual Tours:

4. • Ask for marketing materials or images of homes with standard inclusions. These help visualize what is included.

5. Tour Display Homes or Virtual Tours:

6. • Sales consultants can highlight which features are standard and which are upgrades.

7. Ask Questions:

8. • Confirm details about standard inclusions, especially if unclear. For instance, ask about brick choices, roofing options, or included appliances.

Why Do Base Prices Vary?

Builders adopt different pricing strategies:

• Low Base Price Strategy: Minimal inclusions to attract budget-conscious buyers. Upgrades are added as needed.
• High Base Price Strategy: Comprehensive inclusions with minimal need for upgrades. Typically targeted at buyers seeking convenience.

Even within the same builder, there can be variations. For example, builders often offer different ranges—entry-level, mid-range, and premium—each with varying inclusions.

Internal Inclusions to Look For

• Flooring: Are carpets, tiles, or floorboards included? Where are they provided (e.g., living areas, bedrooms)?
• Ceiling Heights: Standard or upgraded?
• Lighting: Are downlights included or only batten lights?
• Cabinetry: Are laundry cabinets standard or just a basic trough?
• Kitchen Features: Stone benchtops, overhead cupboards, and dishwashers are often optional.
• Bathroom Features: Check for included towel rails, toilet roll holders, privacy glass, and tapware.

External Inclusions to Consider

• Facade Choices: Standard or upgraded options? (ask for real photos if possible)
• Brickwork Above Windows: Is this included or is there a cheaper infill panel?
• Fly Screens and Doors: Included or optional?
• External Lighting: Are floodlights or feature lights provided?
• Garage Features: Remote controls for garage doors are commonly standard but worth confirming.

Turnkey Inclusions

Turnkey packages ensure your home is ready to move into upon completion. These inclusions vary significantly between builders but may include:

• Front and rear landscaping
• Fencing and gates
• Driveway and pathways
• Letterbox and clothesline
• Blinds and curtains throughout
• TV antenna

Best suited to Investors and First Home Buyers, turnkey options are very convenient and save a lot time, energy and effort by having everything done for you. These homes are ready to move-in upon completion without all the headaches (and cost) of handling the extra items yourself.

Key Tips for Evaluating Base Prices

1. Understand What’s Included:

2. • Review the inclusions document and ask for clarification on anything unclear.

3. Focus on the Overall Quote:

4. • Don’t get bogged down by individual item costs; consider the overall package and its value.

5. Consider Promotions:

6. • Builders often include promotions to enhance value, such as free upgrades to kitchen or bathroom finishes.

7. Trust Matters:

8. • Beyond price, choose a builder and consultant you trust. The right floor plan, builder, and consultant are as important as the price.

Common Mistakes to Avoid

• Comparing Only Base Prices: This overlooks differences in inclusions and value.
• Neglecting Detailed Questions: Ask about specifics to avoid surprises later.
• Skipping Research: Visit display homes, tour colour studios, and request virtual guides to see inclusions firsthand.
• Ignoring Turnkey Options: If convenience matters, ensure Turnkey features are included.

Key Takeaways

• Base prices represent the starting cost of a home design and its inclusions.
• Builders’ inclusions vary significantly, so compare carefully (better yet, get a sales consultant to compare for you)
• Use tools like inclusions documents, visual guides, and display home tours to understand what’s included.
• Look beyond price and prioritize trust, the right floor plan, and value.

Listen to the Full Episode

For more insights and tips, listen to the full episode: Base Prices and Standard Inclusions Explained.

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process—completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.

Explore more episodes at http://www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.