Why Builder Quotes Vary So Much
Two builders. Same block. Same size home. A $60,000 difference in price. Here's why that happens — and what to look for before you decide.
1. Inclusions Are Different
The biggest driver of price variation is what's included. Builder A might include ducted air conditioning, stone benchtops, and hybrid timber floors as standard. Builder B quotes a lower price but those are all upgrades. When you add the upgrades, Builder B costs more.
2. Site Costs Are Excluded Differently
Some builders include a site allowance in their quoted price. Others exclude it entirely and present it separately after a site inspection. A $30,000–$60,000 site cost difference can make a cheaper builder significantly more expensive once you're on site.
3. Specification Levels Differ
Even when builders appear to include 'stone benchtops,' the quality, thickness, and colour range may differ significantly. One builder might include 20mm porcelain; another offers 40mm natural stone as standard. The word 'included' doesn't mean equivalent. Note: engineered stone benchtops are banned in Australia from 1 July 2024.
4. Facade and Roof Differences
The facade shown in advertising or at a display home is often a premium upgrade. Builders may quote on a basic facade to keep the headline price low. Always confirm which facade is included at the quoted price.
5. Overhead and Margin Differences
Larger volume builders have higher overhead costs — showrooms, sales teams, marketing. Boutique builders may have lower overheads but charge a premium for customisation. Neither is inherently better; they're just structured differently.
6. Provisional Sums and Allowances
Provisional sums are estimates for items that can't be costed precisely upfront — things like electrical, site works, or landscaping. If a builder uses a low provisional sum to reduce their headline price, you could face a surprise bill during construction.
How to compare fairly
Ask every builder to quote the same home size on the same block, with the same inclusions. Use our free comparison tool to see what's standard vs upgrade for each builder before you request a quote.
Frequently Asked Questions
Why is one builder $80,000 cheaper for the same sized home?
The cheaper quote likely has fewer inclusions, a lower specification, or excludes site costs and other items the other builder has included. Always compare like-for-like.
Does a higher price mean better quality?
Not necessarily. Higher prices can reflect overhead costs, margin, or simply a premium brand name. Focus on what's included, not the price alone.
How do I get a fair comparison?
Ask every builder to quote the same home size, on the same block specification, with the same key inclusions (e.g. ducted AC, stone benchtops). Then compare the total.
Are fixed-price contracts actually fixed?
Fixed-price contracts cover the items listed in the contract. Variations, site costs, and provisional sums can still add to your total.
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