“How much will it Cost to Build My Home?”
It’s like the search for the Holy Grail. I have been in the building industry now for over 30 years and as a professional builder it is still the hardest thing to explain to a prospective client. It’s like me saying to you, how long the piece of string in my pocket is! Building a house is unlike any other product you will buy in your life time. There are over 100 people/components that have to be individually sourced, negotiated with, purchased and installed to complete the construction of your home.
Here are some typical questions that come up in the building industry when trying to calculate the cost of building a home and some explanations as to why they happen and what you can do about it.
“Can you give me a price per square metre?”
Most good builders can look at a set of detailed plans and engineering documents for a few hours and provide a reasonable cost estimate. However, some will add at least $150 per square metre to any such estimate. The reason comes down to those 100+ things mentioned earlier. The fact that just one problem in the construction program can create a negative cost domino effect throughout construction is well known to every builder. That is why most contract builders will build in a margin to the cost of building your home anywhere from 18% to 35%. But most builders rarely make a profit in excess of 10%. The reality is this: there are houses built for $750 a square metre and there are houses built for $2000 a square metre. You get what you pay for.
“Before I spend $10,000+ on full plans, surveys, engineers, planning and approvals etc. how do I know how much it is going to cost to build this house?”
Answer: You don’t, you only have a range within which to work. For example $1100 per square metre. If someone says it will cost $1000 per square metre then you should consider the range to be $1100 per square metre to $1250 per square metre. Now for a 290m2 house that represents a variance in the range of around $45,000. Do you have a strong enough financial position to ensure you will can go to the top end of this price range? If so then you may want to get a concept plan done and a proper initial estimate based on the concept plan. At least this will take you closer to a correct price with a minimum of costs outlayed.
“What is the cheapest way to build a house?”
OK, now that is a much easier question to answer. The cheapest house builders (at first) in the country are the large, volume based, project home builders that you will find in Brisbane and South East Queensland. Some are so cheap they don’t even have display homes. But you remember you certainly won’t get quality. If you want value for money then you must define first what that means to you.
Secondly you must be able to compromise in order to accomplish value. So now you know why no-one will give you a fixed price tender unless you deposit a non-refundable sum of money with them.
Because of the various unknown factors “rough estimates” are always going to be rough estimates until a detailed costing and estimating analysis is undertaken on your detailed working drawings combined with your detailed engineering drawings and specifications. Because of the resources that are applied to this process that is where your non-refundable deposit goes. If you are a more discerning buyer looking for quality and value for money, and you have a realistic approach to the cost of building a quality home, then consider talking to Ison Homes today.
Our prices are fixed at contract stage and we don’t pull up hidden surprises along the way, only honesty from day one.
Project companies will attract you with low prices to get you to sign a contract, and then start inflating prices to made some sort of a profit on the project, in the end you will pay more for your home of poor quality than with a quality builder like ourselves. Remember who is paying for all the display homes, the sales people, commission and there large offices ….. That’s easy….. YOU ARE!
Remember to get 3 quotes, if one comes in significantly cheaper than the other two asked yourself why.
- Builder has a cash flow problem and desperately trying to keep his doors open to pay for the last job with this creditor’s, why he wants your business badly.
- They haven’t included the major items you have asked for, that the other builders have.
So before you pay thousands of dollars for plans and engineering specifications that may never be used, why not talk to us at Ison Homes here in Brisbane about your new home.
To find out more, please call 07 32074298