New home buyer traps

New home builder or not

Mark Bryson - Thursday, June 05, 2014
New home builder or not

Marketing companies are popping up everywhere and who are you buying your home from? a builder or a marketing company.

There are many positives in dealing directly with your builder rather than a third party. By dealing directly with your builder you will be able to use his or her knowledge to your advantage with regards to design, location and your buildings functionality.

By dealing with a marketing sales agent they have little or no building experience and untimely can cost you dearly.

There are not only the financial implications to think about but poor design and orientation issues created by a lack of experience in construction and building knowledge.

The marketing companies are not builders and only mascaraed as such.

Ultimately the losers here are the home buyer and the sub-contract builder working for very little gain in this three way deal. The only winner is the marketing company pocketing easy cash at everybody’s expense.

I am continually being approached by marketing companies to undertake their building works and it is little wonder they are obviously running out of builders willing to work for nothing.

They advertise a house and land package and homes to be built on your land.

The fee they charge is around $12-15K and this leaves the builder that they sublet the home build to around $10K to build the house.

This is where the problems start to build a home for such a small amount of margin leads to many builders going out of business.

Nobody gains from a builder closing their doors the client ends up with a half-finished job in the case of liquidations.

In short I suggest you look very carefully at who you are buying your home from! Are they really a builder?



Comments
Tony b commented on 06-Jun-2014 05:36 PM
They should be stopped this practice is no good everybody loses
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