FAQ about Your Building Broker
Firstly, what is a building broker?
Great question! The term is relatively new and is growing in popularity, however the truth is people have been providing this service for decades. We’re very similar in operation to an Architects office, but use a different model where you pay minimal up front fees, making this specialty service more accessible to most home buyers. We also provide several services which provide additional benefits to our clients which some architects don’t.
Why should I choose Your Building Broker?
We are the premium Building Broker in Perth Western Australia and have the greatest expertise when it comes to building new homes. We don’t do renovations, we don’t do commercial construction, we specialise in new homes only. Because of our depth of knowledge, experience and staff we are able to design the best possible designs using only the best industry professionals. As you can see from this web site we continually remain up to date with industry standards and freely provide the best of our knowledge to all of our clients, making their building experience the best experience possible. Unlike some other building brokers, our service encapsulates the full building lifecycle. We are with you from start to finish.
Why should we use your services?
The discrepancy between builders quotes on individually designed homes is large which is why our service is so popular. A recent client of ours saved $75,000 on their two storey design in November 2010. Imagine if they had gone directly to the builder who’s quote was the highest of all? $75,000 is a lot of money! Imagine what you could buy with $75,000 extra in your pocket? Price is important, but it’s not everything. We also conduct builder reviews and on site inspections to ensure you’re getting what you’ve paid for. No other building broker offers the full lifecycle of service that we provide.
Which builders can we use to build our home?
We’re not locked into using any builder – unlike sales consultants who represent builders in display homes. Perth has a lot of good builders to choose from which is another great reason to use Your Building Broker. We will work with you to find out what your needs are and then help find the right builder for you. We only recommend builders who are client focused, and provide value for money. If a builder isn’t on our list of preferred builders, it’s probably for a good reason.
Is your service free?
In short, no. We all know nothing in life is free and quality doesn’t come cheaply. Contact us for an explanation of costs associated with using our services and we will outline our fee schedule for you.
FAQ about Building Contracts
How long do I have before I need to pay my building deposit after signing my building contract?
Your deposit is payable on the day you sign the building contract so long as the builder gives you a copy of the Home Indemnity Insurance certificate. Most clients finance their new homes and therefore the banks will arrange the deposit payment. In most cases the banks will also request for a copy of the Home Indemnity Insurance certificate before processing the deposit claim. More recently, some banks have withheld the deposit payment until receiving a copy of the building license.
How long after I sign the Building Contract till the builder starts on site?
Generally builders will not submit for a building license until they have a signed contract. Building licenses can take between 3-12 weeks depending on the local shires. Normally most builders would have you conduct a prestart meeting to do your product and colour selections while this approval process is happening. It is important to note, all builders want to start as soon as possible so that they can start making money. The longer the approvals take the more builders lose by way of supplier price increases.
Can I be charged for those supplier increases?
If you enter into a fixed price building contract you could still be charged a price increase depending on a few circumstances. These price increases however can only be handed down in a couple of cases, one of which is a change in government policy (such as increasing the GST) or if starting the building has been delayed due to circumstances beyond the builders control.
What about provisional sums and prime costs?
Builders are entitled to use provisional sums and prime costs whereever they believe they are applicable. There is an advantage to both clients and builders by using provisional amounts. The builder is guaranteed to make a certain markup on products and labour, and in many cases clients can receive credits when the final cost comes in below the expected amounts. Builders must not intentionally undervalue these amounts and should be able to prove that the set amount was fair and reasonable at the time of going to contract. Some people may say that builders cannot exceed a provisional amount by more than 10%. That’s totally incorrect which is why our clients find our advice throughout the full lifecycle of building invaluable.
FAQ on Solar Passive Techniques
What is the minimum star rating of new homes?
Currently there is a BCA (Building Code of Australia) requirement to meet 5 stars with the requirement to lift that rating to 6 stars being held back from implementation until 2011 by the State Government to try to alleviate increases in new home building costs.
What about Solar Panels?
While there are many benefits to using solar panels on a roof there is still a carbon cost on the production of the panels and a significant ‘buyback’ period if you do purchase solar panels. Essentially the buy-back period is calculated as the cost you paid for the panels versus the time it takes you to save the money you spent installing the panels. Currently the buyback period is greater than 10 years on most systems even with the government rebates. Given the average lifespan in one house of 7 years, it’s still not worth considering as a serious investment.
How about rain water tanks?
Rain water tanks became popular in Perth a few years ago however it was quickly realised that the suburban versions are too small to really have any real benefit. They fill up quickly in large downpours of rain but empty too quickly also when used for flushing toilets alone. This means you must install a pump feature to keep the tank filled with water which then raises the amount of evaporation of water during the hotter months. Underground rainwater harvesting is another solution but again the buyback period is too long to be justified.
So what do you recommend regarding these technologies?
All new technology costs are quite high but hopefully in future the costs will come down and the buyback period will reduce to less than 5 years. At that point it should be seriously considered as a valid option when building. Also new technology is being developed so a good solar passive design may be utilised in future using the new technologies.