One of the most common shocks for home builders in Australia happens right before signing the contract: the final price is significantly higher than expected.
In most cases, this increase isn’t caused by one major change, it’s the result of builder selections, allowances, and upgrades being finalised at contract stage.
Understanding how this process works can help you protect your budget and avoid unpleasant surprises.
1. Display Homes Don’t Reflect Base Pricing
Display homes are designed to sell the dream, not reflect the base contract price. They almost always include upgrades such as:
- Higher ceilings
- Premium façades
- Stone benchtops
- Upgraded lighting and electrical
- Feature tapware and fittings
When these items are added back into the contract, costs can increase by $30,000 to $100,000+, depending on the builder and scope.
2. The “Base Price” Is Rarely Build-Ready
Most advertised prices exclude essential items that are only confirmed after soil tests, surveys, and engineering. These often include:
- Site costs beyond basic allowances
- Slab upgrades
- Council and infrastructure charges
- Bushfire, flood, or acoustic requirements
- Driveways, retaining walls, and external works
These items are typically added right before contract signing, pushing the total price higher.
3. Selections Appointments Are Where Costs Add Up
At contract stage, clients make their final selections for:
- Flooring
- Kitchens and bathrooms
- Electrical layouts
- Appliances and cabinetry
- Ducted Airconditioning
While individual upgrades may seem minor, they add up quickly. Extra power points, full-height tiling, soft-close drawers, or upgraded appliances can collectively add tens of thousands of dollars.
4. Provisional Sums Get Locked In
Early quotes often rely on provisional sums for items like site works, excavation, or drainage. Once designs and engineering are finalised, these allowances are replaced with actual costs—most often higher than initially allowed.
This is one of the most common reasons final contract prices exceed early estimates.
6. Late Changes Cost More
Changes made after tender or during construction usually cost significantly more due to:
- Redesign and documentation fees
- Builder variation margins
- Construction delays and holding costs
Early decisions provide far greater cost control.
Final Thought
Builder selections don’t usually blow budgets because of one big decision, they do it through lots of small decisions made late in the process.
Using Builder Brokers ensures you have an understanding what’s included, what’s missing, and how upgrades are priced is critical to staying on budget.
Take the guesswork out of building and be introduced to quality trusted builders by using Builder Brokers. We are completely free for our clients to use and stay with you throughout the build.
Early clarity = fewer surprises and better control over your build budget.