Most property investors will be familiar with buyer’s agents. These are licensed real estate professionals who specialise in finding, evaluating, and negotiating a property purchase on behalf of their clients.
However, investors may not be aware that building brokers also operate in the Australian property market. Like buyer’s agents, these professionals act as a guide to help their clients navigate the process of building a new home from scratch. Their engagement starts at the initial planning stage and runs through to the completion of the newly built home.
Building brokers are independent and don’t have affiliations with any particular builders. They are there to help their clients make an informed choice on what is a substantial investment. They aim to reduce the stress of building a new home and help their clients get value for money.
As they are usually experienced in the home building industry, they know all the pitfalls to avoid. Best of all, for property investors and other types of clients, their services are usually paid for by the builder. This is because the commission the builder would normally pay to their salesperson is paid to the building broker instead.
The net result is that your home will cost the same, or even less, than you would pay directly. Plus, you get peace of mind knowing you have an experienced and independent building expert in your corner right the way through the build process.
A building broker can help property investors considering a new build by:
- Sourcing the land.
- Helping select the right designer and builder.
- Providing guidance on land and building contracts.
- Advising what to look for in a good design.
- Explaining how to save money during the design and tender process.
- Working out the ideal construction methods for your investment property.
Two ways a building broker can help you as a property investor
- Cost savings
Building brokers can save you significantly because they offer seasoned negotiation skills and can provide economies of scale. Their experience also means they can advise you on ways to save money when building a home.
Additionally, they’ll guide you on what hidden costs to look out for and provide recommendations on any non-standard items in the construction that may blow out your budget.
As well as financial savings, a building broker can save you significant time. They understand the building market, know the builders in your local area, and can also recommend products to suit your needs. They know the various processes involved in getting your project started, including council restrictions, additional site costs, covenants, and contract negotiations.
A building broker can also help keep your project moving and ensure your investment property is completed on time. This means you can confidently secure tenants in advance, knowing your rental income will start coming in straight after building completion.
- Independent and experienced advice
Building brokers are experienced and knowledgeable about everything you need to know about building a new home. They’ve worked with numerous clients and been through the process countless times, so they understand what could go wrong and how to avoid common mistakes. If your project encounters any issues, they can help you get your new build back on track.
A building broker also understands the risks associated with building a new home – particularly in the current economic climate – and is up to date with the latest planning and zoning approvals.
They’ve dealt with numerous builders over the years, so they understand how they work and the best ways of communicating with them to get the best outcome. They understand what makes a good or bad design and can help you select the right builder and designer for your needs.
A building broker is also there to advise you on the building process, explain the differences between builders and designers, and be upfront about what to expect regarding hidden costs or timelines. They’ll also work with you on any contract variations, so you fully understand the cost implications and whether they’re reasonable or not.
And, because of their experience, they know which builders are reputable and who have the necessary skills to create an ideal investment property. They know the history of each builder they recommend, including who the staff is, how they work, and what you can expect when dealing with that particular builder.
This includes understanding the builder’s specifications and the details around any promotional offers a builder may have, such as covering rent costs if the project isn’t completed on time.
Your building broker can also help you understand the different construction methods available and recommend which ones best suit your needs. They’ll explain the costs, the pros and cons, and which ones will suit your preferred design.
Written by Mike King, CEO & Founder of Better Way 2 Build (WA)
If you’d like to learn more about how a building broker can help with your next new build in Perth and the surrounding area, get in touch with Mike King at Better Way 2 Build. With their client driven approach and fee paid by the builder, they’ll act as your advocate throughout the building process. Better Way 2 Build guarantee you’ll get a better outcome working with them with their values-driven approach at no extra cost.
