Building brokers are specialists in the home construction industry, whose primary service is coordinating the home construction process with the customers to ensure top-level quality while saving on costs. A building broker works with you to understand your requirement. And to endeavor the best designers and builders that match your needs and preferences. With this, you can save a large amount of money on your real estate residential project, saving you thousands of dollars of hard-earned money without compromising quality.
Benefits of building broker
Some of the benefits of building broker are such as –
Design
A builder broker will create the dwelling design, usually the development approval drawings, to be submitted to the council for approval. They may guarantee council approval, which is a good thing. The price of these drawings may be significantly less than getting an architect to do something similar. With the builder broker reasoning that their return is from the builder on signing up, so it is in their interest to take it that far. There are a few catches, the copyright of the drawings will belong to the broker builder, and will be licensed only if you use their services.
Conflict of interest
There is a difference between a mortgage or insurance broker and a builder broker. The former can conveniently be compared by yourself. When you receive a loan from a mortgage broker it can be analogous with any number of banks, all on identical terms and conditions. Similarly, with an insurance broker, the insurance premiums can all be conveniently compared. As a builder broker, you do not have a license to use the copyright except if you choose to progress the build through the broker, with the builder broker altercate that this is how they make their fees.
Transparency
The builder broker will cloud however they can make a comparison between builders, to favor the quote that gives them the largest cut. Each builder may give different referral fees, depending on a past relationship, etc. As you will never know what quote will favor you. And that is why they are hesitant to introduce builders that are not on their shortlist? They may require to build new relationships or know that there is not much commission through them.
They can summarise the quotes into a simple table, so you can easily compare them. Their summaries are arranged to lead you to choose a builder that the builder broker prefers. Brokers argue that they are simply taking the commission that the salesperson of the builders would normally take. This may be true if the broker has a good accord with a builder. But again, there is no transparency, and unlike a salesperson what incentive does the broker have to negotiate i.e. a lower price.
Alternatives
A better alternative to a builder broker is assimilating a draft person or architect to design the dwelling for you. Once council approved, then approach builders individually. You will be dealing with the builder’s salesperson, but if you do not like what one builder is offering, simply move to the next.
Wrap Up
In today’s highly commercialized building landscape, building broker services are a must. Even if you are still in the planning phase of your home. Get in touch with a Real Estate Diary to see how much you can save.
