Why that ‘Builders Discount’ Might be a Trap | Stannard Family Homes

by Ryan Stannard | October 28, 2024


Imagine this: You meet a builder on a Friday, and by Saturday, they’re offering you a $50,000 discount — but only if you act quickly.

Not wanting to miss out, you sign the contract on Sunday.

At first, it feels like everything is going smoothly, but a few weeks into the project, things start to unravel.

Timelines shift, hidden costs emerge, and that dream home you envisioned starts to feel more like a distant memory.

You’ve been caught in an age-old trap, and now you’re paying the price.

Too Good to Be True: The Risk of Signing Too Quickly

Unfortunately, many people don’t have to imagine this scenario — they’ve lived it.

What they’ve experienced is a classic bait-and-switch tactic.

Here’s how it works:

A builder lures you in with an exciting offer — like a giant, unignorable discount — designed to make you act fast.

But once you’ve signed the contract, the fine print comes to light. Suddenly, those attractive discounts are offset by hidden fees, unexpected cost increases, or downgraded materials.

In the end, you’re paying far more than you ever expected, and what you thought was a fantastic deal is now a financial headache.

Take Sarah as an example…

A Painful Example: When Discounts Hide Disaster

Her family was in the exact same situation a few years back.

They met with a builder who promised an irresistible discount if they signed that weekend. Eager to secure their dream home, they signed on Sunday.

But soon after, the builder introduced “unforeseen” costs for materials and labour, eating up most of the discount.

By the time they cancelled the contract, they had already lost thousands of dollars in non-refundable fees and were emotionally drained from the ordeal.

The Real Reason Builders Push Quick Contracts

For some builders, the rush to secure contracts is all about maximising short-term revenue.

By pushing clients to sign quickly, they can lock in deposits or fees that provide an immediate boost to their cash flow. Even if clients cancel later on, builders often keep these non-refundable payments.

This helps them cover upfront costs and keeps their operations running “smoothly.”

It’s also a numbers game — the more contracts they close, the better their chances of retaining enough clients to make a profit. 

Builders know that, while some clients may back out, many will stick around, either due to the perceived hassle of starting over or because they feel too committed to turn back.

The problem with this approach? It erodes trust and can completely shatter a builder’s reputation.

Unfortunately, some builders aren’t thinking about the long-term. They’re just looking to clear their current financial hurdles — at your expense.

So, how do you avoid falling into this trap?

Speed vs. Transparency: Why It Pays to Slow Down

The answer is transparency.

A trustworthy builder will take the time to walk you through every detail of your contract. 

They won’t rush you through the process, and they won’t pressure you into making decisions over a weekend.

Good builders understand that an informed client is a happy client. By ensuring every aspect of the build is understood before a single brick is laid, they significantly reduce misunderstandings and hidden costs.

Choosing a transparent builder has four key benefits:

  • No hidden costs: When you fully understand the contract and costs, you can trust the process, knowing there won’t be any unexpected fees or surprises.
  • Peace of mind: With a clear, up-front builder, you not only avoid financial strain but emotional strain, too. This means you can actually enjoy the building process.
  • On-time delivery: When expectations and timelines are clear from the start, your project is more likely to stay on schedule, avoiding unnecessary delays.
  • No cancellations: The process of cancelling a contract is as taxing on your sanity as it is on your wallet. Transparent builders avoid this nightmare by ensuring you’re 100% informed and confident before signing anything.

How We Rebuilt Sarah’s Trust in Builders

Now, let’s return to Sarah. After her nightmare experience with a volume builder, she was understandably hesitant to start over.

But when she partnered with us at Stannard Family Homes, the experience was completely different.

Sarah and her family were carefully walked through every detail of the contract. They had plenty of time to review costs, timelines, and expectations, and by the time they signed, they understood exactly what to expect and were totally confident in their decision.

The result? A beautifully crafted home, delivered on time and within budget, with no hidden costs.

The lesson here is clear: when you choose a builder who values transparency, the journey to your dream home can be smooth and stress-free.

Takeaway: Don’t Let Discounts Blind You to Hidden Risks

At the end of the day, building a home is one of the biggest investments you’ll ever make.

Don’t let the excitement of flashy discounts or the pressure to sign quickly cloud your judgment. While a fast contract might seem like a win in the moment, the long-term consequences can be devastating.

Take your time, ask questions, and choose a builder who prioritises honesty and transparency over quick wins.

With that said, avoiding builders who win business through bait-and-switch tactics is just one trap you could encounter on your homeownership journey.

That’s why we’ve put together this comprehensive guide:

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. 


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