We recognize that pricing methods within the home building industry can be confusing, and when you’re trying to work within a budget for your home cost and ensure that you’ve covered all your bases, this can be super frustrating. That’s why we’ve taken the time to explain our pricing system right here.
Why do house prices vary so much?
We get it: when it comes down to tin tacks any investment means parting with your money, so you need to understand how it’s been priced. The building industry, like any line of business, has three basic levels of quality and this results in three levels of pricing: cheap, mid-range and expensive. To help you understand this better, we’ve re-enforced our point in the case study below.
Jane needs to purchase a carton of milk. She goes to the dairy case in the supermarket and finds at least a dozen different types of milk available for her to choose from – suddenly a simple purchase seems to have become complicated! There’s everything from the basic supermarket brand UHT to locally sourced milk from the upmarket dairy just out of town. And why the differences in price? After all, isn’t it all just milk?
This scenario and the variations in price is one with which we are all too familiar. We understand that in Jane’s case, she’ll get what she’s prepared to pay for: she can invest the minimum amount and purchase cheap milk, or she can spend a little more and enjoy a better-quality product.
What level of investment do you want in your new home?
With the previous example in mind, we can understand that there are varying levels of quality within the building industry:
This is what we typically align with the big, mass production home builders, also known as project home builders. Yes, their pricing is cheap, and apparently they achieve this by working on skinny margins and screwing their contractors and materials suppliers down to the last cent. From our own observations and other’s experiences we hear along the way, the result seems to be inferior quality, poor service and a generic home with a lower re-sale value.
Here we generally find the local builder that does a quality job and provides great service. Skilled tradespeople are used in the construction process and the result we often see is a first-rate home that will maintain its value in the market place.
These are extreme luxury homes: extravagant and lavish houses that are priced accordingly!
At Hensley Park Homes we build homes in category 2: quality, elegance and affordability under one roof!
The table above gives indicative pricing for each size home in the HPH range. ‘Why such a large difference in each category?’ I hear you ask…
The price of an individual home depends on these three factors:
This is a no-brainer: a 3-bedroom home could be very compact and have a small footprint, or it could be very spacious (larger living areas etc.). At the end of the day, they’re both 3-bedroom homes but the physical size will be reflected in the price.
Design features such as ceiling height, window type and size, kitchen counter-tops etc. etc. The list of features goes on, and each one influences the bottom line significantly.
This covers things such as appliances, tap-ware and lighting where the range is huge: from basic to top-of-the-range, the price of fittings varies wildly.
As the table shows, the finished price of a home can literally double, based on these three areas. It is also important to note that the prices quoted above do not include special costs such as the connection of services, water tanks, septic systems etc., which your site may require.
Accurate pricing vs square metre rate
At Hensley Park we enjoy giving our customers an old-fashioned, fair deal. This means accounting for every length of timber, nut and bolt, and tin of paint used in the construction process and pricing the home accordingly. We believe in charging for only what we use: accuracy and honesty are the essence of our business culture and this is reflected in the fact that we don’t add any extra ‘buffer’ or ‘fat’ into our pricing structure.
By comparison, many home building companies choose to charge per square metre. Although we acknowledge that there is some relevance in this method, it’s important to understand that each home has what’s known in the industry as a ‘core’ cost (kitchen, bathroom and laundry) which doesn’t vary greatly according to the overall footprint of the home. Therefore, if the customer is charged per square metre, they’re essentially paying ‘money for jam’: the price isn’t accurate according to the size of the home.
How can I get an accurate price for my new home?
Working out at an accurate cost for your new home isn’t difficult, it simply requires working through a few steps:
- Coming up with a general idea of what you want/need
- Calling the team at Hensley Park Homes for an initial chat or making an appointment to meet with our sales personnel at our display home in Ballarat
- Invest in a design session where we can work through a lot of the fine detail including plan, specs, permits, pricing and site details.
Your new country home may well be the biggest investment you’ve planned yet. And that’s why it’s so important that it’s a home you love; a home that’s crafted from quality materials and by skilled personnel; a home that will maintain its value should your circumstances change, and you decide to sell years later.
For further information, please view the following posts:
Building a new home is an exciting and emotional journey, and the team at Hensley Park are ready to help you every step of the way. For more information on pricing or to discuss your specific home and site needs, call us today on 03 5574 8255 and talk to one of our design consultants.