Standard Inclusions, do they affect me?
You can save money on a new home purchase by asking this one simple question.
A common occurrence amongst new home buyers is not having an in-depth look at what the standard inclusion they will be getting is when purchasing a new home. Larger builders use sales gimmicks like 'buy a new home and get 20 to 40 thousand dollars’ worth of extras or certain items for free. In most cases these are not extras, they are necessary items you need to move into a home such as floor coverings, and they are then ‘included’ at a highly inflated price.
Many new home buyers then think ‘it does not matter it is free when I buy the home’, this is incorrect, in one way or another the cost of these items are included and hidden in the home price.
The first item that is nearly always looked at is price and why not, if I am paying less for a house than I would with another builder why wouldn’t I just build with them? The easy answer is builders vary in what they include in a home and adding items to a house costs a lot more than a builder who includes this as a standard in all homes.
Why is this the case? A builder who includes more items as a standard has already got the products ready to go at the pricing in the house, the working drawings are done and only need a minor product tweak not a complete over hall and they are prepared for this already in their building practices.
This not only works on standard inclusions but other items also, let’s use electrical items as an example. A builder who is prepared for what a home buyer wants and needs will not require the items to be added on later. This could range from one power outlet in a room when you need two or a light in a hallway when you know more will be needed, even external lights, will you need to add them in later? If you do then all of a sudden the price is becoming less and less important because it is not the starting price, it is a guide to what you could get when looking to settle for a lot less.
So, the question I asked was Standard Inclusions, do they affect me?
Surely by now, you are starting to question what am I getting in my home as standard and why can you not just include these products up front? The simple answer is always the easiest, YES, a builder’s standard inclusion for a new home purchaser is more important than the price in most cases, the exception to the rule is you are planning to buy a home with no changes at all and do them yourself at a later date.
This gets us to the pressing issue, what questions should I be asking and what are you including in the home?
I will provide you with some questions that should be asked so you can gauge how much extra you will be paying on this ‘low’ price
1. What is included in the site costs?
This is crucial to the cost of your home as if you have a flat block with no major issues then why should your site costs be high? If you have a sloping block that may have rock, then what extra charges will I incur and are you liable for more charges.
2. Do you include floor coverings in your homes as standard?
A simple product such as floor coverings you would think are included in all homes, but you would be surprised how many builders leave this out of their pricing.
3. How many coats of paint will I be getting?
This affects the finish and longevity of your home internally. Do you have kids or pets that will require touch-ups later? A 3 coat paint specifications saves money down the track.
4. Are eaves included in your homes?
Eaves are a small item that are a last thought, but they can save you on your bills making the house more economical long term.
5. What electrical items are standard?
This is one of the biggest items and can be a costly exercise. How many power points & lights am I getting? What about tv points and NBN if its required? How about external lights and points what is included? The questions here are limitless so the more the better.
Another item that should never be overlooked is product. What products will I be getting in my home? Are the suppliers reputable? Surely all products are the same?
The simple answer to this question is NO, all products are not the same and selecting reputable supplier products with larger warranties gives you piece of mind that these products are thoroughly tested and will last a long time in your home and if not you at least have cover through the warranty they stand by. This is another standard inclusion item that goes unnoticed due to the initial price you are receiving, but what are you getting? It is extremely important to know what products you are getting and which supplier they are coming from.
The last item is selection. I am purchasing this home at a low price I must get a lot of product selection. The answer is NO, generally, the selection is limited to a few items and to choose another products type is an upgrade once again affecting that low price.
1. What brick am I getting?
2. What is the selection of roof tiles?
3. If I want Colorbond what is the price difference?
4. What type of garage door am I getting?
5. What is the selection of bathroom fittings?
There are hundreds of questions that can be asked about products and selection which form a vital part of your home and build cost.
When purchasing that new dream home remember that price is one thing, but inclusions are another just as important. Take the time to sit down and review price versus inclusions and you will quickly see that sometimes the price is not all its cracked up to be.