The True Cost of Low Quotes: What Builders Don’t Want You to Know

by Ryan Stannard | October 14, 2024


Have you ever received a low quote and thought, “That’s more like it! See, this is what shopping around gets you!” Yet when the job’s done, have you then experienced that sinking feeling when you realise you got exactly what you paid for?

The principle is no different for building a custom home. In fact, it’s even more important in this context — because building a custom home is one of the most significant investments you’ll ever make.

So, is the lowest quote really the best path to your dream home?

Spoiler: Of course not. And here’s why…

You Wouldn’t Buy a “Luxury Car” for the Price of a Clunker

… so why trust a lowball quote?

Imagine you’re shopping for a new car. You find a dealership offering a luxury model at an absurdly low price.

You’d think to yourself, “Hmm, so what’s the catch?” right?

With that in mind, why would anyone have faith in a builder who promises the perfect home for a fraction of what other builders are quoting?

Unfortunately, many would-be homeowners get caught off guard by the traps hiding in most cheap quotes: low-quality workmanship and materials, and additional costs.

The initial numbers may look appealing, but the final invoice tells a different story — a story packed with a series of unwelcome surprises that strain not only your wallet but your sanity too.

From Quote to Invoice: The Shocking Reality of Hidden Costs

To win a job, it’s not uncommon for builders — especially desperate ones — to low-ball costs and exclude essential components to make their quote appear more competitive.

But any “savings” you think you’re getting quickly disappear once construction is underway, leaving you with…

Low-quality materials and workmanship. When builders try to shrink their starting figure, quality is usually the first thing they throw out the window. Often, they’ll corners with essential components, like structural footings, or use lower-grade materials for framing and insulation. You may also find that finishes, such as flooring, don’t meet your expectations. Beyond making your custom home less comfortable, this can lead to costly repairs and maintenance down the line.

Hidden costs and financial strain. Imagine, six months into construction, suddenly paying extra for things you assumed were included, like site preparation, proper plumbing, or even electrical work. Then there are those “premium” finishes that somehow didn’t make the initial quote. These surprise costs don’t just pinch your wallet — they can push you to the brink, with some would-be homeowners even forced to cancel their contracts and walk away, out of pocket and without a home to show for it.

Uncertainty and stress. Building a home can (and should!) be an exciting process, but when unexpected costs start piling up, so does the stress, and it can feel like everything’s spiralling out of control. The constant worry about how much more you’ll have to pay, combined with the strain it puts on your family, can make the entire experience exhausting. The emotional toll of navigating these financial surprises can be just as heavy as the monetary cost.

Cheap Quotes Aren’t What They Seem:
Jess and Mark’s Costly Lesson

Take our clients Jess and Mark, for example.

Before they came to us, they had initially signed a contract with a builder who promised an incredibly low price.

Even though this builder was highly rated, when construction began, Jess and Mark looked back at the initial quote and discovered that key elements — things like the high-quality flooring they’d wanted, essential site costs, and modern heating and cooling — were missing.

Long story short, they had to cough up an additional $60,000 just to get the home they were initially promised!

Transparency and Fixed Pricing: The Secret to a Stress-Free Build

So how could Jess and Mark have avoided that $60,000 headache?

And how can you?

Well, it comes down to two key things: transparency and a fixed-priced contract.

At Stannard Family Homes, we only offer fixed-price contracts that include a full cost breakdown. That way, you know exactly what every dollar is getting you.

Here’s four steps we take to ensure our quotes are 100% transparent:

  1. Comprehensive initial assessments. We begin with soil tests and engineering evaluations so we can anticipate any site-specific challenges and expenses early on. 
  2. Several design meetings. We conduct multiple design meetings to make sure we understand your vision perfectly — leaving no stone unturned.
  3. Thorough quoting process. We invest the time to provide a detailed, itemised quote. That means no vague descriptions and no surprises hidden in the fine print.
  4. Quote review meeting. Before anyone signs anything, we sit down with you to go over the entire quote, ensuring everything is crystal clear.

The #1 Takeaway:
Look Beyond the Bottom Line

Next time a low quote tempts you, we urge you to look beyond the final figure and any extravagant offers or gimmicks designed to distract you.

Trustworthy builders don’t rely on traps like that to win your business.

Instead, they focus on quality, detail, and transparency — not only in their quotes but in everything they do.

Of course, there’s more to building your dream home than avoiding dodgy quotes.

That’s why we 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 avoid many of the potholes that homeowners fall into.

Get it now to ensure you’re not standing in front of a second-rate home a year from now with a sinking feeling in your chest, realising you got exactly what you paid for.

Disclaimer: Names and identifying details have been changed to protect the privacy of individuals. These stories are based on real events, and any resemblance to actual persons is coincidental.


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