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Swayed by an alluring discount, Jane and Tom were on their way to signing a building contract that promised luxury upgrades and significant savings. Luckily, a friend alerted them to read the fine print and they discovered:
1) The discounts were subject to ‘management approval’ and came with conditions that weren’t clear.
2) Stipulations that voided the discount if specific ‘timing’ conditions weren’t met.
3) Hidden costs that would have turned their dream home into a financial nightmare.
Believe it or not, buried deep within the contract were clauses that allowed for unexpected price hikes due to “unforeseen” material costs, ambiguous timelines with no penalties for delays, and cheap finishes that would leave their home feeling like a subpar rental.
It's a classic trap: the upfront cost looks great on paper, but the fine print is where the builder makes their real profit.
The seductive discount was nothing more than a bait-and-switch tactic, designed to lure in unsuspecting families and lock them into a deal that would bleed their budget dry. Jane and Tom quickly realised the ‘savings’ would evaporate once the builder started adding on extras and charging for every minor change. They walked away, grateful they dodged a bullet.
Sadly, not everyone is so fortunate. Every year…
Thousands of Clients End up Cancelling Their Building Contracts Due to These 3 Unexpected Costs
Unexpected Cost No. 1: Price Escalation Clauses
These clauses are often slipped into contracts without much fanfare, but they’re like ticking time bombs for your budget. Builders include them to protect themselves against fluctuations in material costs, but they also give them a green light to increase prices mid-build—leaving you with a budget that can balloon overnight.
Unexpected Cost No. 2: Substandard Inclusions
It’s the builder’s oldest trick: advertise high-quality finishes and upgrades, only to substitute them with cheaper alternatives that don’t last. You thought you were getting premium tiles, high-end cabinetry, and energy-efficient windows, but what you end up with is far from what was promised. Upgrading to the quality you originally expected often means shelling out even more money than you planned—turning that discount into a costly oversight.
Unexpected Cost No. 3: Hidden Variations and Change Fees
During the build, it’s common to make a few changes as you see your vision come to life. But beware: even the smallest tweaks—like moving a power outlet or changing a door handle—can come with exorbitant fees. Builders know that once construction starts, you’re locked in. They can charge whatever they like because they know you don’t want to disrupt the process. What seems like minor adjustments can quickly add thousands to your final bill, catching you off guard at the worst possible time.
Bottom line: if you want to ensure your homebuilding experience is smooth and stress-free, it’s important to work with a builder who outlines all costs right from the start, with no hidden conditions or unexpected charges.
Building your dream home shouldn’t be riddled with doubts and unexpected hurdles.
Yet there is no shortage of traps, so it’s important to be equipped with all the information you need to make an informed decision. That’s why I created this comprehensive guide for you to download:
Build with Confidence - 7 Things You Must Know Before Designing a New Home
It's completely free, and it will help you navigate the complexities of the homebuilding process with confidence.
