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Fixed Site Costs vs Quoted: comparing your options

At Fairhaven Homes we offer two types of site costs, ‘fixed site cost’ and ‘quoted’, although both are not always available to clients.

It’s a good idea to know exactly what you’re signing up for, so we’re delving into what each one means and how they compare.

 

What are site costs?

Various costs contribute to the total price of building a house. Besides purchasing the house and land there are costs associated with preparing the property for construction. These are referred to as ‘site costs’. They’ll vary depending on what needs doing.

 

What does ‘Fixed Site Costs’ (FSC) mean?

This simply means that the cost of preparing the land is fixed from the beginning. It can provide peace of mind knowing that things like site preparation, rock removal and drainage won’t incur additional costs.

Our FSC team can usually calculate a fixed cost for untitled land if we have access to the client’s Estate Engineering, so you can progress straight to a signed Housing Industry Association (HIA) contract. This means you’ll be able to get a combined land and construction loan once the title is received.

When choosing fixed site costs it’s important to read the fine print. Check what’s included to minimise the risk of nasty surprises.

 

What does ‘Quoted’ mean?

When site costs are quoted they’re effectively ‘budgeted to order’. This means once the land is titled and full Engineering, Soil Tests, Site Surveys and Council/Water Authority Property Information have been obtained.

There are a couple of scenarios where a quoted or ‘Order’ file will be applicable. We can’t always offer FSCs because of factors like excessive fall over the block or proximity to assets and easements. In this case, site costs will be calculated once the necessary information has been obtained.

You might end up choosing this option because it could work out cheaper. Just remember you’ll need to obtain split land and construction loans for your new build, as HIA contracts cannot be prepared before land titles.

 

How do they compare?

Well, both have their advantages and disadvantages.

Fixed site costs give buyers reassurance, access to a combined loan and a clear idea of their budget. However, we can’t always offer FSCs. The advantage of a quoted file is that the price of building a house might work out cheaper, though you risk unexpected costs.

We at Fairhaven Homes want our clients to know exactly what’s what when it comes to building the home of their dreams.

If you have further queries about fixed site costs vs quoted, have a chat with our experienced team.

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