Top 5 Reasons Why Hesitation is Costing You Thousands in Home Building

28th October 2024

Finance & Budgeting Pre-Construction News & Industry Insights

In this article, we break down the top five reasons why delays in securing land, signing contracts, or seeking financial advice can lead to higher costs and lost opportunities. Learn how to make confident, informed decisions and avoid costly mistakes.

Top 5 Reasons Why Hesitation is Costing You Thousands in Home Building

When it comes to building a new home, hesitation can be incredibly costly. Many Australian home buyers delay making key decisions, often waiting for the perfect deal or additional certainty—only to find themselves paying thousands more in the long run. In this article, based on insights from the Home Building Hub Podcast, we break down the top five reasons why hesitation is one of the most expensive mistakes you can make in the home-building process.

1. Hesitation to Speak with a Sales Consultant

Many buyers spend months researching home designs and land options online, trying to make the most informed decision possible. While research is important, delaying a conversation with a sales consultant can result in missed opportunities and higher costs.

• Sales consultants provide valuable insights that online research alone cannot.
• Many builders now require in-person meetings before sharing quotes, meaning delaying discussions can mean missing out on the best deals.
• Buyers who engage earlier in the process tend to secure better pricing and faster progress.

Solution: Once you’ve decided to build, start talking to builders and consultants immediately. The sooner you do, the sooner you’ll have clear, tailored advice.

2. Hesitation to Secure a Block of Land

Land availability is always changing, and delaying your purchase can mean missing out on prime blocks at affordable prices. Even in a steady market, land is still being sold every day, and many buyers only realise their mistake after they’ve lost their ideal block.

• Blocks with the best orientation, size, or school zoning can sell quickly.
• Delaying for a better deal or waiting for prices to drop may result in higher prices later.

Solution: If you find a block that meets your needs and is within budget, secure it immediately. Waiting often results in limited options and increased costs.

3. Hesitation in Securing the Build

Some buyers become overly indecisive when it comes to signing a contract or paying their build deposit, continually revisiting decisions. While it’s important to be confident, overthinking small details can lead to unnecessary delays.

• Delaying a contract can mean missing out on builder promotions or price discounts.
• Postponing site starts leads to increased holding costs on land loans.
• Builders are constantly adjusting pricing based on supply costs—today’s price is often cheaper than tomorrow’s.
• In some cases, waiting too long can even force a redesign due to new regulations or neighbouring properties.

Solution: If you’ve found the right builder, home design, and inclusions, commit and move forward. Overthinking small aesthetic choices can cause costly delays.

4. Hesitation to Get a Second Opinion on Finance

One of the biggest mistakes home buyers make is accepting the first ‘no’ from a lender or broker. Not all brokers are experienced in new home construction loans, and some are unwilling to put in the extra effort to find a solution.

• Some brokers specialise in new home finance and can find solutions others won’t.
• Many buyers have been told “no” by one lender, only to get approval with a different broker.
• Delaying finance decisions can lead to higher property prices by the time you reapply.

Solution: Always seek a second opinion if you’re rejected or given an unfavourable deal. A good broker will explore all financing options to find a way forward.

5. Letting ‘Uncle Gary’ Influence Your Decisions

Everyone has an ‘Uncle Gary’—a family member, friend, or colleague who believes they are an expert in real estate and home building. While well-intentioned, their advice is often outdated or misinformed, causing unnecessary doubt.

• ‘Uncle Gary’ may have built a house decades ago, under completely different market conditions.
• Many buyers hesitate or back out completely based on BBQ conversations rather than industry facts.
• If Uncle Gary is wrong, will he cover the financial difference you miss out on? Probably not.

Solution: Listen to family and friends, but also seek professional advice from experienced consultants, brokers, and builders. Take in opinions, but make your own informed decisions.

Key Takeaways

• The longer you hesitate, the more expensive your home-building journey can become.
• Speaking with a sales consultant early ensures you get the right advice.
• Secure your block of land quickly—waiting can cost you thousands.
• Delays in signing a build contract can result in increased costs and lost promotions.
• Always get a second opinion on finance—one rejection doesn’t mean you can’t get approved.
• Be cautious about advice from non-experts—even if they’re family.

Frequently Asked Questions

1. Why do home buyers hesitate so much? Many buyers fear making the wrong choice, while others hope for better prices. However, hesitation often results in missed opportunities and increased costs.

2. How can I be sure I’m choosing the right builder? Look for builders with a strong reputation, clear pricing, and transparent communication. Talking to past clients and researching their work can help.

3. What should I look for in a mortgage broker? Choose a broker with experience in new home construction loans and a track record of finding solutions for buyers in complex situations.

4. Is now a good time to build a home? Market conditions vary, but delays rarely save money. Prices for land and construction tend to rise over time, making earlier decisions financially beneficial.

Listen to the Full Episode

For a more in-depth discussion on this topic, listen to the full episode of the Home Building Hub Podcast: Top 5 Reasons Why Your Hesitation is Costing You Thousands

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 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.