In this article, we are going to reveal why you should NEVER choose the builder that provides you with the lowest price.

It’s a safe bet to say that a builder who is desperate for cash will agree to everything you ask for in order to get you to sign a building contract. They will even drop their price just to get you to sign however, this is a massive red flag!!

Residential construction is high risk and low margin, if a builder agrees to reduce their price it normally means one of two things:

Either they were taking you for a ride in the first place in order to see how much extra they could get out of you;
They simply have no idea of their numbers and are only focused on getting some cash into their bank account quickly in order to satisfy the list of creditors who are chasing their money.

If you sign a contract with one of these builders you will unfortunately end up with substandard work which can cause delays and, in some cases, an unfinished home.

If you want the best outcome, you need to invest some time in researching the RIGHT builder for you. When you invest your time in research, you know the right questions to ask… and you become what we call in the industry, an ‘EVOLVED’ client. Every builder wants to deal with an evolved client.

So, how do you become an ‘evolved’ client’?

For starters, when looking for builders in your area – look for a specialist. Avoid the jack of all trades, new homes, renovations, extensions, commercial, industrial and so on.

The builder that claims to do everything is a master of nothing and can lack experience when it comes to your particular style of home. If you are building a custom designed home it is important to look for a builder that only does custom designed homes.

If you are in need of a renovation, it is best to create a list of builders that solely focus on renovations. These guys are specialists, they are very experienced and know exactly what to expect. More importantly, their trades are also experienced in a particular area of construction so the job will encounter fewer delays. Have they taken the time to create an interactive website with examples of their previous projects? Have they provided detailed information of what they specialize in?

Next, be sure to ask them questions via different channels to see how well they respond. Send an email one week and make a phone call the next to arrange a site meeting to discuss your project. Some of the key things to look out for, do they show up on time? Do they answer their phone and return missed calls? Do they respond to emails? The type of service in the sales process is a good indication of the service you will receive once a contract has been signed. That being said, if a builder fails to return your calls or reply to your emails your best decision then is to move on. Don’t waste your valuable time chasing after an unresponsive builder, you will find yourself forever chasing them even if you’ve become one of their clients.

Another key factor to consider is the advice they are prepared to offer before you even become a client of theirs. A professional builder will freely offer advice regarding design & specifications and will also happily connect you with their suppliers. It is important to use this opportunity to speak to the suppliers and ask them about the building company. It’s what they don’t say that is just as important as what they do say!

Finally, ask them about their build process and to see a similar job that are currently in progress. Now, this is really important, when you visit the site it should be buzzing with activity…if it’s not then the following questions may need to be asked: The best question you can ask any builder is… “Can I see the schedule for that job”, If the blood drains from his face and he starts making excuses, then RUN! This is a sure sign that this builder operates without a plan and in this industry, a failure to plan is a plan to fail.

Never Choose a Builder With the Lowest Price