5 Things You Didn't Know About Builders (But Should!)

14th April 2025

Finance & Budgeting Pre-Construction Legal & Contracts

Discover five insider facts about how builders really operate – from how sales consultants are paid to what 'turnkey' really means. This episode helps home buyers understand the behind-the-scenes processes that can impact their experience and budget.

5 Things You Didn't Know About Builders (But Should!)

When you step into the world of new home construction, it's easy to assume every builder is the same. But behind the scenes, there are industry norms and hidden nuances that can impact your experience. In this episode of the Home Building Hub podcast, Colin Bischof and Darren Brennan uncover five things most people don’t know about builders - but really should.

1. Sales Consultants Work on Commission

Most builder sales consultants work on commission, and whilst some may have a base wage - their main income is a based on when a sale is made. That’s why you’ll often be asked:

• "Have you visited any other display homes?"

• "Are you already working with another consultant?"

These questions are less about your preferences and more about who gets paid. If you’ve provided your details to one consultant, company rules generally prevent another from receiving a commission on the same deal. If you prefer a different consultant, discuss it upfront so the team can work out a fair arrangement.

Tip: Stick with the consultant you started with unless you formally switch to avoid confusion or missed commissions.

2. Builders Have Limited Build Zones

You may fall in love with a home design, but not all builders construct in all areas. Some builders:

• Only build in metro locations

• Don’t do knockdown rebuilds

• Won’t build on sloping or high fall blocks

What to do: Always check a builder’s build zone map or ask early in the conversation to avoid wasting time.

3. Colour Selections Vary Greatly

The term "colour selection" can mean very different things depending on the builder:

• Some offer a full in-house colour studio with plenty of choice

• Others limit you to pre-set colour boards

And what’s included in the "builder’s range" can differ wildly. Some include just two brick options, others six.

Quick checklist:

• Will selections be in-person or online?

• How long will appointments take?

• Are appointments weekdays only?

• Can I make changes later?

• What’s the average upgrade spend for similar homes?

4. Promotions and Discounts Are All Relative

Builder deals can be confusing:

• "Pay $10K and get $35K in upgrades"

• "Get $50K of inclusions for free"

But don’t just compare base prices or promotions - compare the end result. Builders position themselves differently:

• Low upfront price with minimal inclusions (you’ll spend more later)

• Mid-range pricing with generous inclusions (better overall value)

Watch out: Big discount headlines often hide a higher base price. A builder offering discounts totalling $30K may still cost the same as a builder with none, and if not, there's something being adjusted to pay for that promotions - could be less inclusions, lower quality material or lower paid trades.

5. Not All Turnkey Homes Are Created Equal

"Turnkey" should mean move-in ready, but it’s become a loose term. True full turnkey should include:

• Flooring throughout

• Blinds

• Letterbox and clothesline

• Driveway

• Landscaping (front and rear)

• Fencing and a TV antenna

Some builders label a home turnkey but only include partial features. Always check the fine print.

Key Takeaways

• Sales consultants work on commission, which affects who you deal with

• Builders have build zones - check before you get invested

• Colour selection appointments vary - know what to expect

• Promotions are marketing tools - compare total build price, not just the deal

• Turnkey means different things to different builders - verify what’s included

Listen to the full episode here: Ep. 93 | 5 Things You Didn't Know About Builders (But Should!)

Glossary of Terms

• Commission: Payment made to a salesperson based on a sale

• Build Zone: The geographic areas a builder is licensed and willing to construct in

• Turnkey: A home that is fully finished and ready to move into

• Builder's Range: The standard options a builder includes in their base price (e.g. bricks, tiles, colours)

• Promotions: Special offers used by builders to market their homes, often including upgrades or discounts

FAQs

Do all builders offer the same inclusions in their base price? No. Inclusions vary significantly between builders, even at similar price points.

Can I switch consultants if I change my mind? Yes, but it should be handled upfront and communicated so commissions and responsibilities are clear.

Will a turnkey home always include landscaping? It should, but unfortunately "turnkey" has become a bit of a buzzword to attract more enquiry. Some only include front landscaping or none at all. Always check the contract.

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.