4 Steps to Getting the Best Building Quotes

22nd May 2023

Finance & Budgeting Pre-Construction

Discover how to get the best building quotes (and avoid costly mistakes) with four simple steps, including financial preparation, research, and expert consultation.

4 Steps to Getting the Best Building Quotes

Building a new home is an exciting journey, but navigating the quoting process can be tricky. With rising construction costs and a competitive housing market, understanding how to secure the right building quote is crucial for avoiding costly mistakes. In this episode, Colin Bischof and Darren Brennan take you through four simple yet crucial steps to help you secure the best building quotes and ensure your home-building experience is smooth and informed.

Step 1: Start with Finance

Before you begin exploring quotes, it’s essential to understand your financial capacity. Here’s how to approach this step effectively:

• Know Your Borrowing Power: Meet with a financial broker to determine your borrowing capacity and affordability.
• Use a Broker with Construction Experience: Many builders work with brokers who specialize in construction lending—a great resource for tailored advice.
• Explore Savings Plans: If you’re not ready financially, brokers can help you with savings plans to prepare for your future home.
• Consider Land Readiness: Look into titled land if you’re ready to build now or untitled land if you need more time to save. Example: A first-home buyer worked with a broker specializing in construction loans to create a savings plan over 12 months, enabling them to secure a block of land that was set to title in 18 months. Pro Tip: Don’t let financial constraints stop you from planning. You can still secure land and start designing your dream home while preparing financially.

Step 2: Do Your Homework

Before heading to display villages or contacting builders, spend time researching online:

• Check Pricing in Your Desired Area: Explore home and land packages to understand what fits your budget.
• Shortlist Builders and Floor Plans: Identify builders and designs that align with your needs.
• Gather Questions: Write down questions about pricing, inclusions, and processes to discuss with sales consultants.
• Look for Reviews: Check online reviews or ask for recommendations to find reputable builders.

Recommended websites:

• realestate.com.au
• Openlot: This website provides a comprehensive list of land estates, making it easier to explore available options in your area.

Example: A buyer looking to build in a particular suburb discovered that moving one suburb away saved them $50,000 while still meeting their lifestyle needs.

Remember: This step is about gathering information to prepare for meaningful conversations with consultants. Don’t let the variety of options overwhelm you!

Step 3: Create a Needs and Wants List

A clear list of what you need and want in your new home is vital for getting accurate quotes. Here are some categories to consider:

• Home Size: Number of squares or square meters.
• Bedrooms and Living Areas: How many do you need?
• Garage Size: Single, double, or even triple.
• Outdoor Features: Alfresco or outdoor rooms.
• Layout Preferences: Bedroom location, kitchen design, etc.
• Inclusion Levels: High ceilings, stone benchtops, and appliance sizes. Pro Tip: Differentiate between "needs" and "wants" to identify areas where you’re willing to compromise. For example, you might need four bedrooms but could settle for standard ceilings initially to stay within budget.

Step 4: Take Action

Once you’ve done your homework and defined your needs and wants, it’s time to meet sales consultants:

• Visit Builders: Discuss your list with sales consultants to find the best package that meets your criteria.
• Compare Quotes: Understand the differences in inclusions, site costs, and promotions.
• Ask Questions: Don’t hesitate to seek clarification about costs, timelines, and inclusions.
• Avoid Analysis Paralysis: Spending months visiting display villages can delay your decision-making. Take the plunge and start engaging with builders.

Pro Tip: Check if the builder offers walkthroughs of completed homes to help you visualize your future space.

Top Tips for Success

1. Act Now: If you can afford to buy, don’t wait. Time in the market beats timing the market.
2. Shop Within Your Means: Your first home doesn’t have to be your dream home. Focus on meeting your immediate needs and building equity.
3. Choose Quality Over Cost: The cheapest quote isn’t always the best. Prioritize trust and transparency with your builder.
4. Understand Quote Variations: Site costs, estate requirements, and inclusion levels can vary. Ensure you’re comparing apples to apples.
5. Work with Reputable Builders: Look for builders with strong reviews and a transparent quoting process.

Key Takeaways

• Start with finance: Know your borrowing capacity and explore brokers experienced in construction.
• Do your homework: Research online to align your expectations with reality.
• Define your needs and wants: Create a list to guide builders in providing accurate quotes.
• Take action: Meet with consultants, compare quotes, and move forward confidently.

For a deeper dive into these steps, listen to the full episode here: 4 Steps to Getting the Best Building Quotes.