Base Price for New Home

Hi

I sought a preliminary quote from Boutique homes and the base price quoted is $27,000 above what's given on the site. On asking for the reason, Im told its a price protection factored in considering my project is in inner Melbourne and involves Knock down, rebuild, town planning etc (these items are anyways costed separately). I'm also told that this extra 27K is fixed and not refundable in any way. Also this price is important considering my property is not on a new estate where construction would be expected to tart in 6 months.

Is this something normal for a volume builder as this addition seems exorbitant to me. Please advise.

How long are they guaranteeing to honour the price in the quote for? If it’s long enough, the $27k may make sense.

The build itself won't start for 10-12 months and then the actual build could take around 12 months. So roughly 24 months. The price wont' change once the contract is signed.

Famous last words my friend.

Read your contract very carefully - builders, especially in the current climate, are frequently approaching customers with signed contracts asking for more money.

They do say on their website that inner melb and mornington has a surcharge. I'm surprised its only $27k going by the advertised prices, I'm in the very early days talking to GJ Gardner in inner melb and they gave me a ballpark figure thats double the Boutique prices.