Over the last few weekends I’ve spent some time walking through display homes in Perth from single storey builders to two-story sakarya evden eve nakliyat builders and some custom home builders. I like to chat to the sales consultants when the opportunity comes up. It gives me plenty of information about their view on the industry and when I see reps that know me we can have a more in-depth conversation about the nuts and bolts of home building.One interesting took place in a Dale Alcock display home where the sales consultant was telling me how the ABN Group builds a massive one third of all homes in Western Australia. That’s huge! Webb & Brown-Neaves, APG Homes, Dale Alcock Homes, Celebration Homes, Home Buyers Centre and TR Homes (transportables) make up the portfolio of residential building companies that come under the ABN Group. They pack a fair bit of muscle and that’s why you can find their display homes in the highly sought after location in every display village – right next to the car park.
What was more interesting was the current sales campaign taking place with Dale Alcock homes. A flat $20,000 discount on their display homes. $20,000! I was told that ‘other builders’ were offering all sorts of incentives like air conditioning, free stone benchtops, appliance upgrades etc… so Dale Alcock Homes just decided, we’re going to knock off 20 grand. That my friends, is good value.
That kind of value is what building brokers have been advertising for months as the kind of discount available through using building broker services. Generally, most clients should expect 5% or more savings on their home price by using a building broker which causes builders to present their most competitive home building price in order for them to win your work.
Dale Alcock just reinforced this very point. By reducing their marketing fees, they are offering $20,000 off this particular display home which equates to approximately 7.5% discount.
Why use a Building Broker? If Dale Alcock is discounting his range of homes by 7.5% you can be sure they’re not building homes below cost. No one is going to do business for the sake of doing business. They are in business to make a profit, and you can be sure that they will still make a profit, or at the very least cover their costs even with this discount.
A Building Broker typically has minimal marketing costs; No display homes or hefty newspaper advertising campaigns, or thousands of brochures to print or marketing executives to pay. When a building broker negotiates building prices on your behalf, they ensure builders take this into account and they submit their prices to us without their normal marketing mark-up (fees). If Dale Alcock is giving you 7.5% while running a display home campaign, imagine the value building brokers can give you using home builders who don’t have huge marketing costs and display homes!