Building Brokers

Met one last week, they sound great.

Get heaps of quotes, you pick the best, they negotiate on variations, assist you along the way with the build......

Anyone have any experience with this approach?
 
Not really mate.

The mob I met last week are based in Perth, called Home Builders Advantage.

www.homebuildersadvantage.com.au

Sounds good, but as like most things, never quite know until you jump in or speak to someone who has already been down that path.

Costs about $9k for their service, but they reckon that can save at least 10% on the build cost.....
 
In my last role as a broker manager for a large volume builder I was approached by a 'builders broker'. Sounded like a great idea, but like lenders and brokers there are a few more things that need to be thought through like cross chanel conflict, commission and soft dollar disclosure etc etc.
 
In my last role as a broker manager for a large volume builder I was approached by a 'builders broker'. Sounded like a great idea, but like lenders and brokers there are a few more things that need to be thought through like cross chanel conflict, commission and soft dollar disclosure etc etc.

Ok, great and thanks, this is the type of info id like to know more about:

Basically im being told:
1 - Were have no preferred relationships with any builders
2 - We charge "you" $9k, and the builder gives us a 2% commission
3 - Were on "your" side all the way through
4 - Dont discount the smaller builders, they are lilely better than the bigger ones.
5 - With us you get IP over the designs
6 - With us, we drive down the comission the builders charge for the sales reps.
7 - They manage the complete council approval process

Thoughts?
 
better the builder you know

Just an opinion... $9,000 is an extra bedroom, or a really nicely done outdoor area.

Personally I would rather spend more time and know what I am buying rather than pay someone 9K. But different stroked I guess.

Also - I reckon some of the bigger volume builders treat brokered builds with contempt - minimal effort, maximum corner-cutting, limited care factor.
 
Considering in a great deal with a builder you should be able to get them down to a 5% profit margin, a 2% margin to the broker paid by the builder has to be costing you something more than $9k.
 
Personally I don't trust anyone who wants my money and I have no control over :)
I have a friend who used one and the designs they came up with were terrible so she refused to pay the large sum and they wanted to take her to court. They ended up sorting it out (as in not paying) and I shall find out which ones they were for you.
Although it takes time I think it's best to do the legwork if you can. If a builder wanted $$ to draw up plans for a development then I didn't use them. I'm not forking out money for an unknown price or an unknown design. Builders should be hungry enough to do preliminary pricing and design for free.
As per my PM to you I ended up with a small builder who doesn't have sales reps, display homes etc. No need to drive down those prices then :)
 
Builders should be hungry enough to do preliminary pricing and design for free.

Preliminary pricing - i agree. that should be quote to do it.
nothing is free in life - and to say do designs for free - draftsman or architects still need to be paid.

unless they're a volume builder or they have existing designs they can use - i find that quite hard to believe.
 
what your really after is an 'client side' project manager - someone who will manage tender process/ selection, manage design issues, assess progress claims, variations, eot's, programming etc.

generally for domestic building i would doubt you would get any value for money they are more for commercial or higher dollar projects. they also do not generally facilitate a good relationship with your builder which is something to consider
 
interesting reading westminsters comments above expecting a builder to design a house that looks good and not pay them for the service what planet are you on :confused: they should be hungry enough to do this?? are you serious

would you expect a bus driver to waive you the bus fare because he is driving past anyway??
 
I'm a scrooge :)
I'm not talking full plans though. Just a basic plan and estimate - no elevations or anything like that.
Maybe it's a Perth thing but many of the builders here will do it. And if they are willing to do it, then I am willing to let them.
For example my builder (Inspired Homes) for my first development did basic plans and estimate for free. I was then able to compare that to Aveling Homes and Gemmill Homes who also did the same for free and choose which one I liked.
For this second development that I'm trying to get over the line I now have a good relationship with Inspired and they have done basic plans plus fully costed and elevations for the bank and I am yet to pay a cent. Knowing that it is a lot of extra work I did offer to pay if the deal doesn't go through as that is only fair.
So that was my advice to Jeff - that he could get it done for free as he is in Perth.
 
I'm a scrooge :)
I'm not talking full plans though. Just a basic plan and estimate - no elevations or anything like that.
Maybe it's a Perth thing but many of the builders here will do it. And if they are willing to do it, then I am willing to let them.
For example my builder (Inspired Homes) for my first development did basic plans and estimate for free. I was then able to compare that to Aveling Homes and Gemmill Homes who also did the same for free and choose which one I liked.
For this second development that I'm trying to get over the line I now have a good relationship with Inspired and they have done basic plans plus fully costed and elevations for the bank and I am yet to pay a cent. Knowing that it is a lot of extra work I did offer to pay if the deal doesn't go through as that is only fair.
So that was my advice to Jeff - that he could get it done for free as he is in Perth.

I hear ya,

Im on the game now, ive just posted of site surveys to 5 builders, expecting proposals/preliminary pricing next week or so. Spoken to Inspired as well BTW, high expectation there :)

My take is that this is all sales, and winning work is always an overhead. Providing budgetary estimates and basic designs is all part of the deal.

Once I select the preferred builder, yes, ill expect to pay for detailed designs etc......
 
I hear ya,

Im on the game now, ive just posted of site surveys to 5 builders, expecting proposals/preliminary pricing next week or so. Spoken to Inspired as well BTW, high expectation there :)

My take is that this is all sales, and winning work is always an overhead. Providing budgetary estimates and basic designs is all part of the deal.

Once I select the preferred builder, yes, ill expect to pay for detailed designs etc......

I hope my recommendation of Inspired Homes does you well. I look forward to hearing how it goes and maybe seeing your options.
 
For example my builder (Inspired Homes) for my first development did basic plans and estimate for free. I was then able to compare that to Aveling Homes and Gemmill Homes who also did the same for free and choose which one I liked.
What you really mean is that you didn't pay an upfront price for the builders to do that work for you. Instead, you paid for it in the price of your home.

Inspired, Aveling and Gemmill will count that work in their overheads and set their markup % accordingly to cover all the 'free' work they're doing for people like yourself.

There are 3 real advantages to using a good building broker.

The first is having a custom home designed and suitable to your block, lifestyle and budget.

The second is the work we put in to qualify the home builders for building quality and customer service. (Now, i'm going to add something there - no one in this field qualifies builders like we do. They don't do the site inspections or reviews like we do.)

Finally, the advantage of having the same plan and specification priced by multiple builders means you'll get competitive pricing.

If you go directly to a builder, you'll pay more. With or without a sales rep acting on your behalf, you'll pay more.
 
Also - I reckon some of the bigger volume builders treat brokered builds with contempt - minimal effort, maximum corner-cutting, limited care factor.

As a building broker, we provide our pool of builders regular work. We meet with them each week and inspect our client sites on a regular basis.

Why would a builder bite the hand that feeds them?

We've found the opposite. If I ever raise an issue with any of our builders I have the owners and directors calling me telling me how they're going to address the issue.
 
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