You’re crazy! Never Build a New Home

As a buyers agent, we deal with people who are looking for various types of homes, location and goals. If I feel that a house and land package will suit my buyers I will suggest this to them and find them suitable options. Instead of someone asking something like “Is it cheaper to build or buy?” or “What are the benefits of a house and land package?” often one of the first responses I get from the buyer is “Oh we don’t want to build a house because there’s too much risk that the builder will fold, or the cost to build a house will blow out”.

Building a house is a dream for many, but the risk of building can cause a fair share of concerns and apprehensions. One common myth that often circulates is the fear that your chosen builder may fold before completing your project, leaving you stranded and without a home. However, it’s important to separate fact from fiction and dispel this unfounded myth. Now I understand that we have heard a lot in the media about building companies going into liquidation. There were Covid related reasons for this, as well as the building boom and government building grants that encouraged a lot of new building companies popping up.

In my opinion building a home shouldn’t be ruled out just because you’re scared the building company will fold, however like any investment, it is good to reduce the risk to you. At Realty Road, we have selected a range of house and land packages that use reputable, financially stable builders that we are completely confident with. If I’m putting my name to something then you can rest assured I have done the due-diligence to avoid issues down the track for my buyers, and I would never choose something for a buyer that I wouldn’t go for personally.

Here are 6 things to research and look out for before you build your new home

1: Strong Foundations: The construction industry is governed by regulations, licensing requirements, and professional standards that help ensure stability and accountability. Reputable builders invest time, effort, and resources to establish a strong foundation for their business. They strive to maintain a solid reputation by delivering quality work and satisfying their clients.

2: Research and Due Diligence: Before selecting a builder, it’s crucial to conduct thorough research and due diligence. We look for builders who have been in the industry for a significant period, have a proven track record, and positive client testimonials. It’s important to take the time to check their credentials, licenses, certifications, and affiliations with professional bodies. This process will help you identify reliable builders who are less likely to fold.

3: Financial Stability: Reliable builders prioritise financial stability to ensure they can complete projects as contracted. They often have established relationships with lenders, suppliers, and subcontractors. Requesting financial information, such as their financial statements or proof of financial stability, can provide reassurance about their ability to see your project through to completion.

4: Contracts and Insurance: When engaging a builder, a robust contract is essential to protect your interests. A comprehensive contract should outline the scope of work, timelines, payment schedules, and dispute resolution mechanisms. Additionally, professional builders carry appropriate insurance coverage, including builder’s risk insurance, to safeguard against unforeseen circumstances.

5: Communication and Transparency: Open communication is key to a successful building project. Reputable builders maintain regular communication channels to keep you updated on the progress of your home construction. They will address any concerns promptly and provide transparent information about the project’s status, budget, and potential challenges.

6: Industry Regulations and Guarantees: Many jurisdictions have regulations in place that safeguard homeowners during the construction process. These regulations often require builders to provide warranties or guarantees for their workmanship and materials used. Familiarise yourself with local regulations and inquire about the guarantees or warranties offered by your builder.

The myth that you shouldn’t build because your builder will fold is not grounded in reality. While it’s crucial to be vigilant and conduct thorough research when selecting a builder, the majority of reputable builders have a strong foundation, financial stability, and a commitment to completing projects as contracted. By engaging in due diligence, signing comprehensive contracts, and maintaining open communication, you can mitigate the risks associated with the construction process and confidently embark on your dream home-building journey.

At Realty Road we do all of the hard work for you. You can rest assured that any of the house and land packages we offer are with reputable builders that we have confidence in. We help you with the builder selection, the contracts and are with you every step of the way until you get the keys to your brand new home (and beyond!) Building a home should be one of the most exciting times in your life. Let us deal with eliminating or minimising your building risks, and you can worry about picking out furniture!