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Have done the walking around display villages to death now... Or nearly!
Finally decided on a builder and house design, with some modifications, mainly to keep the design within the Council's building code (researched off the web). A sketch is all we really have at this stage.
Haven't finalised selections for kitchen, tiles, windows, colours, etc, etc ,etc and have been sent a "construction proposal"... They want it signed in three days or it lapses and it has an expiry date in 120 days time!
Now, the final selections haven't been discussed. The plans haven't been drawn. Council hasn't yet been approached. Non of that Basix stuff has been sorted out and they want $15000.
I know our Council is slow with DA approvals... 4 months is not uncommon and that's without problems! So what happens to the house price on the construction proposal after the 120 days has lapsed and we're still waiting on Council?
HELP....please...
PS... the base price for our design recently went up $35000... Well,it didn't actually go up, but $35000 worth of inclusions were removed.
Our construction proposal has these inclusions for the same price... Thus our dilema!
Any thoughts...
I signed a new home proposal before we had picked colours, finalised plans etc and we had to pay a deposit of $1500.
$15,000 deposit is a bit steep??
Whos the builder?
archangle,
I would be ignoring the 3 day deadline. I would get everythign selected and sorted out so that the final price is known. Then, and only then, pay or sign anything.
Once you've paid the $15,000 deposit (or signed anything), they've got you. Standard marketing tactic is to instill a sense of urgency in the customer so they don't shop around.
After you got everything finalised and all risks removed, approach them and ask if they'll build for the same price as now quoted. I know what their answer would be.
Cheers,
Casa
I know what their answer would be.
Casa, thats a big call not knowing all the facts!!
Perhaps the saleperson is genuine in this case
Matt
I know what their answer would be.
Casa, thats a big call not knowing all the facts!!
Perhaps the saleperson is genuine in this case
Matt
Undoubedly the salesman is geniune. AND they will accept to build for the same price in 6 months time (unless you live in Perth).
Thanks for the input folks... Keep it coming...
By the way, from the experience out there, when does money generally start changing hands and what amount is 'normal'?
Normally Sydney project home builders charge $600 for initial site survey+soil test+initial drawing.
After that differs from every builder. Some charge 5% of total value and need to sign contract before lodge to council, some are more flexible, charge a few thousand and wait for council approval.
We paid $6000 and received council approval, still haven't sign contract yet due to a few internal changes.
After contract signed, you will see a section there telling you their schedule for payment stages. You can actually request for a copy before/after council approval. In case you found anything too ridiculous, you can pull out before been stuck too deep.
Hope this helps.
Cheers
Allan
http://building-our-first-house.blogspot.com/
$15000 is definitely too high, shop around and you will a lot of other builders with more reasonable prices. Would you mind telling us which builder this is??
If you past the 120 days, the base price just keep rising. Ours took 4 months for council approval and the base price increased twice - $5000 in total.
It will keep increasing until the contract signed.
Cheers
Allan
http://building-our-first-house.blogspot.com/
I'd be reluctant to hand over $15,000 without seeing something in writing that say if the whole thing goes pear shaped, I'd be entitled to a big refund.
It happens - people cancel and demand refunds (I know from first hand experience).
The amount seems to be much higher than other people are experiencing.
Perry