Difference between headline price and quote

Smiley14 · Jan 24, 2019 1:59 pm

Hello

We are about to build for the first time. We have picked a design with Hickinbotham but are a bit surprised at the difference between the headline house price and the provisional quote (almost $100k). I knew that there would be things like insulation and air con which aren't covered in the headline price but I wasn't expecting some of the things to be "extras" and the cost to be as high.
The quote is already towards the top of what we wanted to pay which means I now have to limit the "would like if possibles" or readjust my budget which I would rather not do.
Is this normal?
We decided to build as we were struggling to find what we wanted at a price that we wanted to pay and I'm starting to question whether I have made an expensive mistake.

Needing advice.

Bebbsy · Jan 24, 2019 2:30 pm

Smiley14

Hello

We are about to build for the first time. We have picked a design with Hickinbotham but are a bit surprised at the difference between the headline house price and the provisional quote (almost $100k). I knew that there would be things like insulation and air con which aren't covered in the headline price but I wasn't expecting some of the things to be "extras" and the cost to be as high.
The quote is already towards the top of what we wanted to pay which means I now have to limit the "would like if possibles" or readjust my budget which I would rather not do.
Is this normal?
We decided to build as we were struggling to find what we wanted at a price that we wanted to pay and I'm starting to question whether I have made an expensive mistake.

Needing advice.

We have found the same variation in cost as you, additional $110k more than the base price of the house.

We are building with Statesman, also got quotes from Hickinbotham and Fairmont and same situation. And that’s before you get to the “selections” stage.

Having said that we have been quoted $38k for additional site works and footings and are expecting (hoping) it will come in at half that.

Smiley14 · Jan 24, 2019 2:43 pm

Our site works and footings are $33k and we are hoping that is padded out a bit but do we gamble on that being the case?

Bebbsy · Jan 24, 2019 2:44 pm

Smiley14

Our site works and footings are $33k and we are hoping that is padded out a bit but do we gamble on that being the case?

Where are you building, and what’s the size of your house?

Smiley14 · Jan 24, 2019 2:47 pm

216 square metres in western suburbs of Adelaide

Bebbsy · Jan 24, 2019 2:50 pm

Smiley14

216 square metres in western suburbs of Adelaide

So presumably a flat area then. Fingers crossed your footings come well under what is quoted.

Has your quote included any floor coverings, besting, window treatments, fencing, stormwater drainage, concreting (footpaths/driveway), landscaping etc? These would all be additional costs with building a new house.

Smiley14 · Jan 24, 2019 2:57 pm

Yes it has, but even so as a first timer it was a surprise and I just need to adjust my expectations of what I can and can't get for my budget. I'm also going to double check my quote for potential savings.

Bebbsy · Jan 24, 2019 3:00 pm

Smiley14

Yes it has, but even so as a first timer it was a surprise and I just need to adjust my expectations of what I can and can't get for my budget. I'm also going to double check my quote for potential savings.

👍

KingTaco · Jan 24, 2019 4:43 pm

Bear in mind other costs will creep in too - tiles, colour selection and electrical/smart home. Could amount to quite a bit more money there, so something to be mindful of if you're approaching the top of your budget.

Smiley14 · Jan 24, 2019 5:16 pm

Thanks I will

Steve4216 · Jan 24, 2019 7:42 pm

I think everyone gets in the same boat when they first decide to build. I know I was.

I have signed my contract but I had to compromise for budget reasons. It ended up about $1500 per sqm, that included air con, all flooring, all lighting and fairly good fittings and inclusions. I ended up with a slightly smaller house but I got everything I wanted in it, and to be honest the house is more than big enough for our needs now and into the future.

Smiley14 · Jan 26, 2019 9:23 pm

Thanks, the numbers are just a bit scary and there is a whole new vocabulary to learn. Ultimately like yourself, I will still end up with a house that is more suitable to my needs that anything I have seen for sale and is significantly better than anything I have lived in before.

kks · Jan 26, 2019 10:49 pm

Smiley, mate, building approvals are way down in SA over recent quarters. Do a quick bit of media research and you will be surprised at the figures. Builders are hungry. Appliance, tiling, floor covering suppliers are all battening down for a rough ride. The finance is just not out there as it was. Work it to your advantage. It's not unfair as a desirable client to do that. Chase inclusions as well as keen pricing. And take care, all.

Smiley14 · Jan 26, 2019 11:58 pm

Thanks

Steve4216 · Jan 27, 2019 1:27 am

enjoy the ride. Just have a budget and hold it. The most important thing someone told me was that at the building stage just upgrade the things that are harder to upgrade later. Like ceiling height, wall positions, room size and block orientation.

You can always change a tap or a shower head down the track.

kks · Jan 27, 2019 11:24 am

You are so right, Steve. Seeing house being built here in SA with full attention to the cosmetics, - you know, the kitchen choices/front doors/paint colours - but no anti-con under the colorbond roof, no house wrap, low ceilings, minimal eaves, poor stormwater provisions; all stuff the owner will live to regret.

Intellichoice · Feb 03, 2019 1:00 pm

Smiley14

Yes it has, but even so as a first timer it was a surprise and I just need to adjust my expectations of what I can and can't get for my budget. I'm also going to double check my quote for potential savings.

Are you working with a builder? I guess you need to sit down with them and take a closer look on your construction plan and estimates to be able to adjust items that can be taken out to building savings, enough or would help you complete the additional items that you need for finishing touches and paraphernalia for your home. An additional buffer amount of at least 10% should also be set aside in the event of unplanned challenges along the way as you build your home.

davenatjack · Feb 06, 2019 10:33 pm

Bebbsy

Smiley14

Hello

We are about to build for the first time. We have picked a design with Hickinbotham but are a bit surprised at the difference between the headline house price and the provisional quote (almost $100k). I knew that there would be things like insulation and air con which aren't covered in the headline price but I wasn't expecting some of the things to be "extras" and the cost to be as high.
The quote is already towards the top of what we wanted to pay which means I now have to limit the "would like if possibles" or readjust my budget which I would rather not do.
Is this normal?
We decided to build as we were struggling to find what we wanted at a price that we wanted to pay and I'm starting to question whether I have made an expensive mistake.

Needing advice.

We have found the same variation in cost as you, additional $110k more than the base price of the house.

We are building with Statesman, also got quotes from Hickinbotham and Fairmont and same situation. And that’s before you get to the “selections” stage.

Having said that we have been quoted $38k for additional site works and footings and are expecting (hoping) it will come in at half that.

Where are you both building?

Bebbsy · Feb 07, 2019 12:59 am

davenatjack

Bebbsy

Smiley14

Hello

We are about to build for the first time. We have picked a design with Hickinbotham but are a bit surprised at the difference between the headline house price and the provisional quote (almost $100k). I knew that there would be things like insulation and air con which aren't covered in the headline price but I wasn't expecting some of the things to be "extras" and the cost to be as high.
The quote is already towards the top of what we wanted to pay which means I now have to limit the "would like if possibles" or readjust my budget which I would rather not do.
Is this normal?
We decided to build as we were struggling to find what we wanted at a price that we wanted to pay and I'm starting to question whether I have made an expensive mistake.

Needing advice.

We have found the same variation in cost as you, additional $110k more than the base price of the house.

We are building with Statesman, also got quotes from Hickinbotham and Fairmont and same situation. And that’s before you get to the “selections” stage.

Having said that we have been quoted $38k for additional site works and footings and are expecting (hoping) it will come in at half that.

Where are you both building?

We’re building on a flat block in a rural township 45 mins north east of Adelaide.

Bebbsy · Jun 05, 2019 7:07 pm

Smiley14

Our site works and footings are $33k and we are hoping that is padded out a bit but do we gamble on that being the case?

How did you go with your final site works and footings cost, did they exceed the $33k allowance?

We received our report and costings today and find they have come in at $44,500, more than $6k over what had been allowed for.