How to Compare Builders Quotes Properly

17th February 2025

Finance & Budgeting Pre-Construction

Learn how to properly compare builder quotes and avoid costly mistakes when building your new home. This guide breaks down base prices, site costs, and promotions, ensuring you make an informed decision based on value, not just price.

How to Compare Builders Quotes Properly

When building a new home, comparing builder quotes can be a challenging process. With different inclusions, promotions, and pricing structures, it’s easy to feel overwhelmed. In this episode of the Home Building Hub Podcast, hosts Colin Bischof and Darren Brennan break down the key aspects of comparing builder quotes properly to ensure you’re making an informed decision.

Why Comparing Quotes is Difficult

Many home buyers struggle with comparing builder quotes because they don’t always review them on a like-for-like basis—what Colin and Darren call apples to apples comparisons. Builders use different wording, promotional structures, and pricing methods, making it difficult to see what’s included and what’s missing.

Some common mistakes home buyers make include:

Comparing only the final price without reviewing inclusions
Not checking whether the home sizes are the same
Overlooking costs such as site preparation and estate requirements
Being swayed by promotions without understanding their true value

To help simplify the process, Colin and Darren have outlined three core areas to focus on when comparing builder quotes.

1. Understanding Base Price and Standard Inclusions

The base price of a home typically represents the retail price for the standard inclusions that a particular Builder provides. However due to location and conditions of blocks being different, items like site costs and estate requirements are unlikely to be included in a base price. When reviewing base prices:

Check the floor plan size. A home that is even one square (9.29 sqm) smaller could be $14,000–$16,000 cheaper.
Compare standard inclusions. Some builders may include premium items like high ceilings, stone benchtops, or floor coverings, while others may charge extra (or include them as part of a separate promotion)
List key inclusions in a spreadsheet or on paper to see where the differences lie. If an item is included in one set of inclusions, be sure to note it down as an extra in the other Builder columns as well.

Common Standard Inclusions to Compare:

Flooring (tiles, carpet, hybrid flooring)
Ceiling heights
Lighting (LED downlights vs. standard battens)
Heating and cooling options
Cabinetry in kitchens and bathrooms
Appliances (dishwasher, oven type, rangehood)
External features (flyscreens, brickwork above garage, facade options)
Window locks and privacy glass
Landscaping, fencing, driveway, and letterbox

Taking time to properly assess the base price and inclusions will help you avoid unexpected costs later.

2. Site Costs and Additional Charges

Site costs cover the work required to prepare your land for construction. These costs can vary significantly based on factors like soil type, fall, fill and estate requirements.

Key Considerations:

Fixed vs. provisional site costs – Fixed site costs give you price certainty, whereas provisional costs can lead to unexpected price increases.
Foundation type – Some builders include a basic M-Class slab, while others may provide an H-Class slab as standard for example. To help understand this, the Builder with an M-Class slab will generally have a lower base price, but higher site costs... and vice-versa for the Builder with a H-Class slab in the base price.
Rock removal – Ensure quotes specify whether rock removal is included or will be an additional charge.
Bushfire Attack Level (BAL) compliance – This can add $4,000–$8,000 to your cost, depending on requirements.
Easements and sewer connections – Extra costs may apply if the sewer tie is too close to the home and needs relocating.

Always ask your builder to clearly outline site costs so you can avoid any hidden surprises.

3. Comparing Builder Promotions

Promotions are one of the trickiest aspects of builder quotes. Builders offer deals like “Pay $10,000 for $30,000 worth of upgrades” or “Free site costs” to make their quotes more appealing.

How to Assess Promotions:

List all promotional inclusions and assign a rough market value to them.
Check if all quotes include similar items. If one quote includes a luxury kitchen upgrade and another doesn’t, add an estimated cost to make them comparable.
Look at turnkey options. Some builders include driveways, landscaping, and fencing, while others don’t. If one quote doesn’t include these, factor in the cost separately.
Beware of exclusions. Some promotions may exclude essential costs, such as bushfire compliance or estate requirements.

Since promotions are complex, Colin and Darren recommend letting your builder’s sales consultant do the comparison for you. Their goal is to win your business, so they’ll highlight the differences and help you understand the best deal.

Final Thoughts: Choosing the Right Builder for You

At the end of the day, the best builder for you isn’t necessarily the cheapest one—it’s the builder that best meets your needs, provides transparency, and makes you feel confident in your decision.

Key Steps Before Making a Decision:

Compare inclusions side by side to ensure quotes are truly comparable.
Don’t focus solely on price—consider service quality and reputation.
Ask for fixed site costs whenever possible for price certainty.
Review builder promotions carefully and ensure they genuinely add value.
Trust your instincts—choose a builder you feel comfortable with and who communicates well.

Key Takeaways

Always compare quotes apples to apples by checking house size, inclusions, and site costs.
Fixed site costs provide certainty, while provisional costs can lead to unexpected expenses.
Builder promotions can be confusing—itemise and compare them carefully.
Your final decision should be based on quality, trust, and what suits your needs, not just the lowest price.

FAQs

1. Why do builder quotes vary so much?

Different builders include different standard inclusions, offer different promotions, and calculate site costs differently.

2. How can I be sure I’m comparing quotes fairly?

Create a list of key inclusions and site costs in a spreadsheet, then adjust for any differences in house size and promotional offerings.

3. Should I always go with the cheapest quote?

Not necessarily. The cheapest quote might exclude essential items or use lower-quality finishes. Always consider value over price.

4. What is a turnkey package?

A turnkey package includes extras like landscaping, fencing, driveways, and window coverings, making the home move-in ready.

5. Can I negotiate with builders?

Yes, but negotiations are usually around upgrades or promotions rather than major price reductions.

Listen to the Full Episode

For a more detailed breakdown, listen to the full episode: How to Compare Builders Quotes Properly.

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 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.