What is a build only price vs fixed price? - Pycon Homes


What is a build only price vs fixed price?

What is a build only price vs fixed price?

Once you know how much you can spend you want to make sure that the pricing you receive includes everything you need. Exactly what is included or excluded as well as the level of inclusions can vary widely from builder to builder.

Some builders will present a “build only” or “base price” which is the lowest price they can put on the table. You can think of this as building a house in mid-air. There is no consideration for the foundations required given your site, how it will sit on your block or potentially other items required to give you a functional home – a driveway and floor coverings are some examples.

These prices look great at first, but like all things that seem too good to be true, you need to be asking what has been left out?

A fixed price will generally take a builder more time to produce, have a lot more detail and consider the conditions present on your block. Allowances and assumptions (particularly around slope and soil type) will have been removed and replaced with information gathered from various reports and certificates. The price will also reflect items you have asked for when tailoring the home to your needs.

Our Tip – Make sure you are comparing like for like. The builder/s you are discussing your home with should be open to questions about what is and isn’t included in their price and have clear answers for you. In the early stages of your journey put in the effort to review why prices are different, especially if the difference is large.

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