Today, we’ll be discussing the differences between wholesale and retail builders, and what you need to know when considering each.
When it comes to new construction, there is a big difference between wholesale and retail builders, and it’s important to get it right, especially if you’re new to the process.
Let’s start with wholesale builders. Typically, they offer a turnkey fixed price contract that includes everything you need to move into your new home, from driveways to landscaping, fences, and more. This kind of quote is what I consider a built home.
On the other hand, retail builders usually offer a base price that seems attractive at first, but when you start adding up the cost of extra items and finishes, it can quickly become costly. Be sure to compare apples to apples, as there are often a lot of items that are not included in the base price.
Financing is also a crucial consideration. With a wholesale builder, getting finance approved is straightforward, as the turnkey fixed price contract covers everything.
However, with a retail builder, you’ll need a finished price that covers all the extras. When you go to your lender, they’ll only approve the loan for what’s in the contract, which can lead to large differences if you need to add in driveways, landscaping, and other items.
When it comes to subtrades and coordination, wholesale builders are responsible for everyone who enters the property until it’s handed over. This includes any issues with painters, electricians, concreters, and more. However, with a retail builder, you’ll need to coordinate these trades yourself, which can be time-consuming and require negotiation.
Finally, disputes can arise during the construction process, so it’s important to have someone on your side, such as an experienced consultant who understands the project and can keep an oversight on the builder. Make sure you have all the fixed prices upfront before signing a contract, and don’t engage a builder until you have a clear understanding of what’s included and what isn’t.
In conclusion, new construction can be a rewarding experience, but it’s important to get all the details upfront and work with the right builder for your needs. With this knowledge, you’ll be better equipped to make informed decisions when considering wholesale and retail builders.
At GCT Property we only deal with wholesale builders who provide a quality finished product with high quality inclusions. If you would like to learn more about the wholesale builders that I use, please book a time in my calendar by clicking here.
Regards,
Geoff Tomkins
Buyers Advocate
PH: 0404 852 781
