Has anyone built recently in WA (or anywhere)?

Hi all,
Looking at building a place in Perth area. Have got two quotes for 4x2 place on the same block.

Builder 1 was 365k Turnkey. Everything included except for any white goods (e.g. no dishwasher).

Builder 2 is 285k turnkey. Same as above, no dishwasher.

Both are fixed price, builder 2 offers a 12 month build guarantee and will pay market rent after 12 months (I don't pay much mind to this as I'm sure there is a loophole, but still offered).

Did research on both builders, both generally positive other than extended delays during covid (which was industry wide).

Basically trying to work out if builder 1 is taking me for a ride on the price or if builder 2 is full of it. When I mentioned the price discrepancy to builder 2 he said that likely builder 1 offers bigger commissions for inflated home values.

Would love to hear any info!

 

Hardly unbiased opinion, they obviously want you to proceed with them and not the other builder.
I'm a bit concerned about the whole "we'll pay you market rent if not built within 12 months" marketing gimmick.

Need to see the specs and inclusions and plans to be able to compare apples with apples. One is cheaper for a reason, just need to work out what that reason is.
I'm doing a bunch of construction loans for clients in QLD and WA, the cheaper build quotes I've seen are using cheaper materials and the builds are lower quality of finish overall.
You also need to be aware that some "turn-key" properties are not true "turn key" as in they don't have landscaping, fencing, driveways in some instances but they are marketed as "turn key".

 

What size building is it & how much per sqm it works out ? It's a big difference in quotes all things being EQUAL.

 

Turnkey in WA usually does not have landscaping, fencing, letter box, and clothesline. But developer will provide fencing (no gate) and front landsaping.

285k is a fair price...how big is the 4brm house in sqm and does it have second living?

 

That's not what I've seen with the ~50 WA deals I've done, all had landscaping, fencing, letterbox etc. sounds like you went with one of the builders I mentioned who advertise turnkey but it actually isn't true turnkey property.
OP should look out for this kind of thing, it's everywhere, turn key means when the build is complete all you have to do is turn the key and move in, nothing left to do.

 

The you are probably dealing with marketeers....

Most of reputable builders do not like doing this....besides these are quite easy. ....

 

Yup.

OP - Are the prices based on plans and apecs you provided or based on plans and specs they have suggested/provided?

Ultimately despite what many people think there isnt enough profit margin jn a build for tbe discrepancy to be purely down to one builder working off a bigger margin % than the other, there definitely is something youre missing that differentiates the 2 quotes

 

No Marketers, just good builders, decent builders quote and complete the whole job, they don't advertise as "turn-key" and then leave you without a driveway, fencing landscaping, letterbox etc. The old bait and switch.

 

Not trying to hijack this thread but somewhat of a related question. Has anyone done a turn key build in Melbourne recently, could be house & land or KDR? If yes, has the prices stabilised or come down or risen? Looking to build around south east...