How common is it to switch builders?

Blacktea2sugars · Aug 16, 2019 11:07 am

Hi

Bought the perfect block in SE Melbourne (Bayside) for a KDR.
I thought we had found the perfect "Custom Builder" after 18 months of research etc
Paid a deposit, got soils and survey done, had initial meeting, discussed design and BUDGET.

Had design review meeting and house is a full 5 squares over what we had indicated we wanted/needed.
Cost (although has allowances for upgrades and selections etc) is close to 200k over our (very clear) Budget.

I've read on here that a few people have started their journey with one builder and paid $$$, only to walk away and go elsewhere.

Just trying to work out how common this is? I feel we've wasted the $$ and our time as we are NO where close.

Having said that. What would be "reasonable" for 40- 41 squares of custom designed home?

Tia

Neatep · Aug 16, 2019 1:08 pm

Just looked at burbank. Base price for 401 is about 310k. So i presume with additions (insulation, flooring, driveway, modifications) it would push up to 400 fairly easily. More if you wanted higher fitouts.

Custom would be more.

A lot also depends on lot size and if you are going 1-2 levels as well as slope. What were you expecting to build? What price?

If you've lost trust in this builder. Bail. The soil and survey results should belong to you. So you should be able to take them to the next builder. (not sure how likely others accept results they didn't do though). It could just be a reality check for you though. Depending on what your budget was expecting.

The extra 5sqm isn't that much. at 1k-3k a sqm that should only add about 5-15k onto it.

Blacktea2sugars · Aug 16, 2019 2:39 pm

Hi Neatep

If only $15k was the difference, we'd suck it up.

Double storey house with 4 bedrooms, Minor sloping site (to be flattened with cut)
We stipulated well under 700k (was hoping for mid 6, to around 675 tops.
Pricing came back north of $870.

As we'd have to put pool, landscaping, driveway, fencing etc on top of this, cannot do it all.

Have contacted 2 other builders since this crazy costing was presented to us.
Both have said 650 more than reasonable for what we want and need.

Just frustrating that we have wasted this time and effort, being so far away in terms of cost.

As I said, I have seen some posters walk away from builders before.
Several have walked away from our builder - seems now I know why!

gillybean · Aug 16, 2019 4:41 pm

We walked away half a dozen times from 3 builders and several draftsmen over a 3yr period. Has cost us well over $15k, we’ve never actually worked it out as we don’t want to know. Didn’t plan it that way it just happened due to budget blowouts as you’re having, and also due to changing minds on design several times. Anyway best thing we did, eventually got a builder that shared our vision and came in on our budget. If you’re $200k over now I don’t see how you can’t not walk away. Good luck.

Rhetti · Aug 16, 2019 10:04 pm

We had the same issue. We wanted a traditional, hamptons gable style house, 35sq, two storey and within our budget.

We went through the first 3 stages (each with a further progress payment - of course): sketch concept, prelim floor plans, detailed building plans and each time I said 'I think this is going be well over our budget' and each time the building designer continued to reassure me that the build would be in our budget.

We finally got to the stage where the buildibg quote came in and it was 150k over budget, without any lighting, external paint or any external works.

We pulled the pin on and went straight to a project builder.

50k below our budget, with a bucket load of upgrades we never thought we would be able to afford.

I wouldn't ever even consider using anyone but a project builder in the future.

ben888 · Aug 16, 2019 10:53 pm

At the initial planning stage, and before any actual building contracts are signed - very common.

I walked away from my first one, who I paid for the soils and survey, although I did manage to use that survey in my final build, so it wasn't all wasted. Walked away from my second builder, whom I paid a small amount mainly for design work, who like yours just couldn't keep to budget. So it was with my third builder that we settled on.

The start of my build thread has a few recommendations for custom builders in SE Melbourne, which might be helpful to you.

Blacktea2sugars · Aug 17, 2019 12:06 pm

Rhetti

We had the same issue. We wanted a traditional, hamptons gable style house, 35sq, two storey and within our budget.

We went through the first 3 stages (each with a further progress payment - of course): sketch concept, prelim floor plans, detailed building plans and each time I said 'I think this is going be well over our budget' and each time the building designer continued to reassure me that the build would be in our budget.

We finally got to the stage where the buildibg quote came in and it was 150k over budget, without any lighting, external paint or any external works.

We pulled the pin on and went straight to a project builder.

50k below our budget, with a bucket load of upgrades we never thought we would be able to afford.

I wouldn't ever even consider using anyone but a project builder in the future.

Think our story is turning out the same, except there's a 2, instead of a 1, in the 150k part.
How do they not listen? It's upgrade, upsell, to the point now that I am extremely UPset!

Blacktea2sugars · Aug 17, 2019 12:08 pm

ben888

At the initial planning stage, and before any actual building contracts are signed - very common.

I walked away from my first one, who I paid for the soils and survey, although I did manage to use that survey in my final build, so it wasn't all wasted. Walked away from my second builder, whom I paid a small amount mainly for design work, who like yours just couldn't keep to budget. So it was with my third builder that we settled on.

The start of my build thread has a few recommendations for custom builders in SE Melbourne, which might be helpful to you.

Hi ben888

Wow, third times a charm hey!

Wlll certainly check out your thread, at this point we need all the help we can get?

gogo65 · Aug 17, 2019 2:37 pm

We are onto our third builder, our last builder was 500k over budget despite being very clear what our budget was.
The average full custom home is around $2000/sqm, (our quote was close to $3000/sqm) however many project builders will build a custom design for much less.

Blacktea2sugars · Aug 17, 2019 6:52 pm

gogo65

We are onto our third builder, our last builder was 500k over budget despite being very clear what our budget was.
The average full custom home is around $2000/sqm, (our quote was close to $3000/sqm) however many project builders will build a custom design for much less.

500k over? I feel sick

Please tell me all is ok now?

Our quote was different for every facet of the house.
Around 5k a square for house
Garage space was 6600 (unsure why, different class slab and no "luxuries" etc)
Balcony came in over 8k a square. (Again, beats me. 1 whole wall missing and zero luxe)

I'm now referring to Custom as" the C word"...….

gogo65 · Aug 17, 2019 7:00 pm

Haha!
Still working through our third design, but so far so good.
Our price was per sqm which is equivalent to over 25k per sq 😳

We’ve paid out significant $$$ to get to this point too.
This is our 4th build, 2nd custom build, so going in with eyes wide opened (supposedly)....