Watch out for fake base prices for new homes

 

In the words of Donald Trump, it's "fake news" and in an era of "fake news", it's not hard to believe that there is also an abundant amount of fake base prices in the NSW new home building industry. So what are these "fake" base prices??

 

Well technically, they are not fake so to speak but rather, it's more of a deliberate misinformation of pricing which I consider just as bad. Building a new home or even buying a new home is meant to be a great experience and it's hard enough manoeuvring your way through all the technical information without fake pricing throwing you off track. Although it's natural to want to get the best price and deal when building or buying your new home, it's always important to remember that "if it's too good to be true"  then it probably is.

 

So why do builders use these misleading tactics? Simply put, its competition. Some Sydney builders tend to showcase fake base prices for new homes just so they can get you in the door and hooked. Always remember: Are you comparing "apples with apples"? or "apples with pineapples"? Is your builder checking the geotechnical specifications of your block before pricing? The reality is that it is almost impossible to provide a proper fix price without the builder undertaking proper due diligence of the property. Watch out for the free tender offers as they are never really free. You will be paying for it in one form or another.

 

It is important that you find a builder that has factored in all the costs associated with building a new home... even the contingency costs which may not be accounted for straight away. Those contingencies should always be REALISTIC! No point having an allowance which ends up costing you an arm and a leg. You should also consider multiple prices from different builders. Just because the base price is the lowest doesn’t necessarily mean it is the best value or quality. This may still be OK for you so long as you are aware of what you are ultimately getting. 

 

You may be surprised to know, that most builders are priced quite competitively.  The cost of building a new home is largely the same across all builders as most of the materials cost the same.  It’s therefore fundamental to know what you are getting. Ask for a complete price and not the base price as this will help eliminate the misinformation. You should also compare what is included in the price listed to avoid any disappointment. 

 

The worst thing you can do is sign up to a low and cheap base price only to find out that everything is an extra that will cost you thousands. Once you add up those thousands on top of the base price, you may soon realise that the price is not much more than the "other" builder which had the better design or inclusions. In fact, the total price may come in even lower! Don't get stung by signing up with a builder without doing all the research. It is often too late to 'walk away' after you have signed your tender or building contract and paid the initial fee.

 

So how do you stop this "fake news" biz? Well, you have come to the right place... myBuildcompare helps by  creating a free shortlist of recommended builders, designs and prices that suite you. You can then compare the builders, their designs and inclusions side by side so you know exactly what you are getting (without the hidden nasties).  No more fake news!

 

Book your free personal consultation with a myBuildcompare new home specialist. It's time well spent.

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