Custom Home Myths: What Most People Get Wrong

When it comes to building a new home, there’s a lot of confusion out there. Whether you’re just beginning to explore your options or you’ve been dreaming of a custom home for years, it’s easy to get caught up in myths and misconceptions about the process.

At Stannard Family Homes, we are busting the myths that you ask yourself before you decide “Let's Build!”

That’s why we’re here to bust the top five myths you’ve likely heard and show you the truth about building your dream home.

Myth #1: Custom Homes Are Always More Expensive Than Catalogue Homes

The Truth: Custom homes aren’t necessarily more expensive than catalogue homes, and here’s why.

One of the most common myths about custom homes is that they’re out of reach financially, especially when compared to catalogue homes. The truth is that the cost difference depends on what you’re comparing, and custom homes can actually offer more value in many cases.

While catalogue homes come with a fixed price based on SET designs, (set being the key word) they may not always suit your lifestyle, preferences, or land. Custom homes allow you to tailor the design to your exact needs and budget, which can help avoid costly mistakes down the line. Catalogue homes might seem cheaper upfront, but they often lead to unexpected expenses due to the need for renovations or adjustments to suit your land and lifestyle.

With a custom design, you have greater control over the materials, layout, and features, which can help you build more cost-effectively. If you’ve already secured land, the cost savings become even more apparent. Volume builders often structure their contracts to allow for additional costs, such as unquoted items, builders' margins on provisional sums (PCs), unforeseen site issues, hidden design fees, and upgrade pressures. You might find that their “fixed price” isn’t so fixed after all.

With catalogue homes, you may face ballooning costs for things like installation, facade upgrades, entry-level inclusions, flooring, and contract variations. Plus, there are often additional costs for council approvals, bushfire requirements, development guidelines, landscaping, air conditioning, solar, and electrical customisation. On top of that, there can be extra administrative costs.

In contrast, custom homes offer more transparency, and you’ll know the full cost upfront avoiding voiding the surprise of receiving a huge bill at the end when it’s too late to adjust. Wouldn’t you rather know your costs upfront, before committing to a contract?

Choosing a custom home gives you the flexibility to avoid unnecessary extras and costs, ensuring that you build exactly what you need without breaking the bank.

Myth #2: Written Estimates from catalog builders Are Accurate and Set in Stone

The Truth: Written estimates are just a starting point, and they can change as the build progresses.

A written estimate is an important part of the building process, but it’s crucial to understand that it’s not a guaranteed final cost. Many people assume that once they receive an estimate, that’s the price they’ll pay—but this isn’t always the case.

The construction industry is dynamic, with factors like material costs, labour charges, and site-specific issues all affecting the final price. For example, fluctuations in material costs (especially with supply chain disruptions) or unexpected site conditions (such as soil problems or weather delays) can impact the final price.

At Stannard Family Homes, we don’t provide "pretty PDFs" with a price that doesn’t reflect the full scope of your project. While some builders might give you a price on paper that looks attractive, we believe in taking the time to provide you with a true, accurate price. Our approach prioritises precision, considering all factors that can affect the final cost. We won’t give you a number that could change drastically down the line—what we quote is based on a detailed understanding of your project’s needs.

That’s why it’s important to work with a builder who values transparency and clear communication. While an initial estimate is based on the scope of work and design, there may be adjustments as the build progresses, and we ensure you’re kept informed every step of the way. It’s all about building trust and delivering the best result without unexpected surprises.

Myth #3: Renovating Is Cheaper Than Knockdown and Rebuild

The Truth: Often, starting fresh with a new build is more cost-effective than renovating.

This myth is prevalent among those who want to save money by renovating their current home rather than knocking it down and building a new one. While renovations can sometimes seem like the cheaper option, they can actually end up being more expensive in the long run.

When you renovate, there are often unexpected costs that come with repairing or altering existing structures. Old wiring, plumbing, and foundations might need replacing, which can add up quickly. On the other hand, when you knock down your existing home and start from scratch, you have a clean slate, and you can plan for everything in advance.

Additionally, if your land has the potential for a custom design that suits your current needs better, it’s worth considering a new build. Starting fresh also ensures you’re building a home that’s energy-efficient, complies with current building codes, and is tailored specifically to your lifestyle.

Myth #4: You Need Finance Approval Before Speaking to a Builder

The Truth: While it helps to have finance in place, you don’t need final approval before starting your discussions with a builder.

It’s a common belief that you need to have finance approval secured before you can even begin the process of building a home. While securing finance early in the process is certainly helpful, you don’t have to wait for final approval before you begin talking to a builder.

At Stannard Family Homes, we encourage potential clients to come in for a chat early on—well before they secure finance. Why? Because it’s important to get the ball rolling on the design, land, and other key details. Once we understand your needs, we can help you set realistic expectations for the total cost of your build.

This early engagement can also give you an idea of how much you’ll need to borrow, which can be helpful when approaching lenders. If you wait until you’ve secured finance, you might miss out on the opportunity to lock in a great price or builder availability.

Myth #5: Supplying My Own Materials or Trades Will Save Money

The Truth: Supplying your own materials can often cost more than buying through a builder.

Many people think that sourcing their own materials or hiring their own trades will save money, but this often isn’t the case. While it may seem like a way to cut costs, it’s important to consider several factors before going down this path.

Builders have established relationships with suppliers, which often means they can secure better prices for materials than individuals can. Additionally, when you supply your own materials, you’re responsible for ensuring they meet all required standards, arrive on time, and are suitable for the specific needs of your build. Any issues with quality, timing, or suitability can lead to delays, added costs, and complications in the construction process.

Furthermore, supplying your own materials won’t help with your insurance coverage. You also won’t be able to utilize your own trades for the build, and this can lead to potential risks. If materials don’t meet safety standards or licensing requirements, or if trades aren’t appropriately qualified, you could face significant legal and insurance issues.

Builders are fully insured for the materials and work they provide, so any issues related to defects, delays, or safety compliance fall under their responsibility—not yours.

By letting your builder handle material sourcing and trades, you’re not only ensuring you get the right products at the best price, but you also avoid any risks associated with insurance, licensing, and accountability. Builders have the expertise to know which materials and trades will work best for your home, ensuring a smooth, high-quality build without the worry of unexpected issues or costs.

Wrapping Up: The Truth Behind the Myths

Building a home can be an exciting yet overwhelming process, but it’s essential to approach it with the right information. Busting these common myths helps clear up confusion and set the stage for a more successful, seamless building experience.

At Stannard Family Homes, we’re committed to providing our clients with transparent, reliable advice every step of the way. Whether you’re ready to build or just starting to explore your options, we’re here to help guide you through the process with confidence.

If you’re ready to get started on your custom home journey, don’t let myths hold you back.

Get in touch with us today and let’s start planning the home of your dreams!

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