Browse Forums Building A New House 1 Jan 25, 2009 11:16 pm Hi guys, I'm new to this, so excuse my ignorance if im being silly.
We've got a block of land on hold in Tarneit Gardens and will be putting deposit on it tomorrow, our problem is that the land wont title until july / august. I'm currently waiting for a quote from my likely builder, which should come through by the end of tomorrow, but since they won't be able to get onto the site until august, they wont be able to incorporate site fees into the contract. Are we going to have to sign a contract and lock ourselves in, then possibly being hit with crazy site fees at the last minute? I have heard they can go up to 15k. Would we be mad to do this? I can't really see any other way to be honest, land is going so quick, and if we're getting land now thats only titling in August, if we wait for another batch to be releases, we could just be waiting so much longer to get building. Would appreciate any opinions or experiences on this please. Thanks! Re: Signing contract with builder before block is titled? 3Jan 26, 2009 8:59 am beattun Hi guys, I'm new to this, so excuse my ignorance if im being silly. We've got a block of land on hold in Tarneit Gardens and will be putting deposit on it tomorrow, our problem is that the land wont title until july / august. If possible, get a fixed price house and land package and remember to get the price capped as the likelihood is that your title will delayed beyond july / Aug. Ours in Tarneit Garden was delayed from Apr to Oct 08 and i am sure the developer is feeling the snowball effect for other later stages. Cheers Re: Signing contract with builder before block is titled? 4Jan 26, 2009 9:26 am Our land doesn't get titled until June but we're going to sign up with a builder before then. We're with PD and they quoted us a fixed site cost even if the land is inaccesible yet. And yes delays are normal so allow for a couple of months for the title.
Also, some of the members here in the forum have been hit with site costs above 15k so getting a fixed site cost is really a good idea IMO. Hope this helps Re: Signing contract with builder before block is titled? 5Jan 26, 2009 9:38 am thanks for the info, just out of interest, when i negotiate with a builder, what should i suggest the site cost cap out at?
8 - 10? or is that just asking for trouble as they could just go ahead and charge me the maximum agreed cap, when it mightnt cost half that in reality? Re: Signing contract with builder before block is titled? 7Feb 19, 2009 8:01 am reaver Our land doesn't get titled until June but we're going to sign up with a builder before then. We're with PD and they quoted us a fixed site cost even if the land is inaccesible yet. And yes delays are normal so allow for a couple of months for the title. Also, some of the members here in the forum have been hit with site costs above 15k so getting a fixed site cost is really a good idea IMO. Hope this helps I'd be cautious with PD, sales guy told me the site cost will be fixed but when I questioned this further I was told that fixed means its just an average / allowance. Simonds offer a FIXED site cost but I need further clarification as I am in the same boat, waiting for land title. My FIXED site cost has come in at 7.4k but unsure if this includes a H-Class slab and rock removal. Re: Signing contract with builder before block is titled? 8Feb 19, 2009 8:25 am I'm not sure why they have to wait til the land is titled.
M3tricon did my first soil test before the land had even started to be developed and were able to provide a ballpark (with the disclaimer that things could change if levels changed or fill was added). The cost didn't change once the land was ready. Beattun, in regards to thinking about an 8k - 10k cap and your horror at 15k site costs.. have a contingency plan. If you hit rock it could well be even higher than this. I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: Signing contract with builder before block is titled? 9Feb 19, 2009 8:50 am If they say they will fix the site costs, make sure you have a good read of the contract because it will say that you have to satisfy requirements by a certain date or you will be liable for any increase in prices (one requirement is normally having the title over your land).
So the price is fixed until what they perceive as a "reasonable" time. The places that won't give you a contract are just avoiding any headaches to do with this clause so they just outright say no to begin with. Stevep79 & Principessa Finished building Wisdom Homes Impression 33mkII in The Ponds, Sydney http://lilypadintheponds.blogspot.com Re: Signing contract with builder before block is titled? 10Feb 19, 2009 9:07 am I'd be very hesitant to sign up before the land is titled.
Our land was delayed about 6 months. We had signed up with the builder, and new we would have some big site costs ($18k). I could not see how the builder would "fix" site costs at say $10k when others are paying up to $15k for similar blocks. I'd also be careful with PD because dont they add $$$ to the overall price depending on when you start your build eg if you start in 3 months it will cost an extra $3k, 6 months - $8k etc??? Only from our experience. If you can get fixed price in writing then go for it! Re: Signing contract with builder before block is titled? 11Feb 19, 2009 9:25 am I'm building with PD and doing fixed site costs and signing the building contract before land settlement
I'm going to be doubly making sure that my fixed site costs are fixed in the contract regardless of soil type as that's what the sales person has told me. 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: Signing contract with builder before block is titled? 12Feb 19, 2009 9:50 am beattun Are we going to have to sign a contract and lock ourselves in, then possibly being hit with crazy site fees at the last minute? I have heard they can go up to 15k. Oh no, they can go much higher than that... But from another angle, are you signing to build when titled? Cause just be aware that there are often delays in titling (a thread) and you may be hit with delay penalties from the builder that may be more than what you save by locking in now? Ask them about those penalties? Re: Signing contract with builder before block is titled? 13Feb 19, 2009 10:03 am lisanne I'm building with PD and doing fixed site costs and signing the building contract before land settlement I'm going to be doubly making sure that my fixed site costs are fixed in the contract regardless of soil type as that's what the sales person has told me. That's a pretty big call by a sales person. If a company allows for M class and yours ends up being P, they sure as hell won't be paying for it themselves. Once again, just make sure there isn't a clause to say that you must have the land title and a few other requirements by a certain date or else the fixed prices go out the window. Eg. the contract I just signed said I have to satisfy all requirements by 15th April or else I al liable for any increase in package costs, etc. This is to protect them from future material price increases as they can't purchase anything until they have approval to build. Stevep79 & Principessa Finished building Wisdom Homes Impression 33mkII in The Ponds, Sydney http://lilypadintheponds.blogspot.com Been in a similar position and we decided to let the builder go. Some of the PSA money goes to engineering so we at least got those documents and they actually refunded us… 2 4542 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 11971 Ardo That is so funny! I wonder how many people know who Larry Haun is these days. I have a couple of young guys we call Mo 1 & Mo 2 who run a crew of 6 boys and… 9 12903 |