Display homes, standard house designs and kit homes – the pitfalls

​Many contractors have display homes which you can visit. The contractor offers to build the same house wherever you want it at an advertised price. Many contractors also offer standard home designs which you can select and have them build at their advertised price. While others offer a kit home, which you can purchase and erect on your property. This all sounds like a great idea, you know what you are getting and the price! But is that the case?

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What's included in the price of your new home?

As with any contractor it’s important to understand the contractor’s reputation and their reliability. In many cases owners fall in love with a particular home design which is within their budget. Sometimes it's not even the overall layout that they like but specific features of the house. It seems an easy process then to sign a contract and get your new home construction underway. Little thought has been given as to who the contractor is, and whether you’ll be getting the advertised product, at the price you envisaged and within the time-frame required. It’s important to choose your contractor wisely (see my article later on selecting the contractor and questions to ask your contractor) and not become solely focused on a particular product. 
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​When selecting a display home or standard plan you must consider the following:

• Will the house meet your local and housing estate rules and permit conditions?
• Understand why you like the house. Ensure that the layout of the home really does suit your needs and those of your family. Don't rush into accepting a house because you like some of the features. Indeed, perhaps even some of these features won't be replicated when the house is built on your property - or perhaps only at an extra cost.
• Is the price really the final price? What provisional sums and prime cost allowances are in the price (I'll discuss this in a future article)? The display home may have more expensive finishes and fittings than the contractor’s advertised price allows. To get the same quality fittings and finishes could add considerably to the final price. Items to consider include:
  • The type of light fixtures.
  • Bathroom fixtures, including bathtubs, basins, toilets, towel rails, toilet roll dispensers, shelving and tap fittings.
  • Counter tops in kitchens.
  • Kitchen cabinetry, including how many, doors, handles and finishes.
  • Windows, including if insect screens, double glazing, tinting, etc, are included.
  • Appliances, including the make and size.
  • Air-conditioning, including the size, make and efficiency. For ducted air-conditioning consider the type and location of air grilles.
  • Wardrobe, including the material, the number of shelves and drawers and whether cupboards have doors (if required).
  • Doors, including the kind of locks and handles, the type and quality of door and the frame. Some front doors can cost several thousand dollars so don’t automatically assume that the door you see on the display home is the one that you’ll get installed in your house.
  • Garages, including the internal finishes and the type of door, it’s material and whether it’s automated.
  • The extent of wall tiles in bathrooms and kitchens.
  • The type of vanity slab in the bathroom.
  • Bathroom cabinetry.
  • The number of electrical outlets.
  • The type of floor finishes, including the quality of carpets.
  • The type of skirtings.
  • The type of cornices.
  • Patio, including floor finish and roof covering.
  • The type of shower door and enclosure.
  • The type of tiles.
• What’s included and excluded in the price? There could be additional costs for site clearing and levelling, connecting utilities, approval by the authorities, landscaping and even for the foundations.
• Will the house plan actually fit onto your property? Indeed is it actually suitable for your block considering the property slope, shape, size, orientation, access and the neighbours?
• Is the house design and materials suitable for your climate?
• Is the contractor reliable? Will they deliver a quality home? Will they complete the house in the time they said they would?

Conclusion

Of course selecting a house from a standard plan does have it's advantages. It can save design fees. In some cases the plans are already approved for that area so it could speed up approvals - meaning construction can start sooner. Often builders have optimised the house designs so they are cheaper to build than other designs.
But it's always important to understand what you are getting and that there aren't hidden costs and unpleasant surprises. Importantly, always ensure that you are employing a reputable contractor and that the home design is really what you want.

​I'll discuss many of these points in more detail in later articles. But of course they are all in in my new book 'An Introduction to Building and Renovating Houses: Volume 1 Hiring Contractors, Managing Construction and Finishing Your Home' which also contains lots of valuable information to save you money and ensure that your home build or renovation project is a success. Click on the image to read a preview on Amazon. The book is available in paper or ebook form from Amazon and other online stores, or ask your local bookstore to order a copy for you.

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