A Look At The Processes & Benefits Of Using A Residential Building Broker

Can you please explain, for the uninitiated, the role of a building broker?

Essentially we help our clients design their dream homes then, using our bulk buying power; we get builders to reduce their profit margins, thereby getting our clients more home for less.

The amount of homes a broker is involved in gives a direct correlation on the savings you will make as builders will only discount if a significant amount of homes are provided to them.

HBA are the largest broker in Perth by volume of homes tendered, consequently we make the largest savings & with this in mind it is safe to say that without talking to HBA you will be paying too much for your home.

What is the process once a client has engaged your services?

Once the client has engaged our services, they will work directly with our designers to produce a detailed concept design. This design will have been based on clients brief and taken shire restrictions & solar passive principles into account.

Our talented team will explain carefully the ideas behind their design & discuss any changes. We will then continue to work with you with unlimited design time to achieve your perfect home and of course with HBA the home will always be within your budget!

HBA will then send your completed design out to a wide range of great builders, all of whom have received our seal of approval both in quality and service. Our unique process of negotiation along with our price guarantee always ensures that you will receive the perfect builder & the best possible price for your new home. It’s simple and absolutely no one in Perth can beat the results HBA deliver.

Once quotes are back, we will then meet with you to analyse all proposals to ensure complete clarity. Our unique process of tendering provides your perfect specification with no omissions or surprises. HBA clients know exactly what is included & precisely how much it costs before making any financial commitment to a builder.

Once client has shortlisted their preferred builders from all the quotes provided, HBA will then facilitate meetings between client and each builder. We organise viewings of their current projects & referrals. HBA ensure our clients always have the best possible results & are able to make a fully informed decision on their final choice of builder.

This process means we can GUARANTEE to save our clients money. Once the client has selected a builder, HBA will then begin the interactive 3D modelling process which allows the customer to walk through their new home before it is built. We also provide clients with a beautiful photo realistic front elevation image of their new home. NB For our developer clients, the planning approval process willbegin at this point.

During construction HBA remain involved throughout all aspects of the process & any assistance or advice you require is part of our standard package. HBA are with their clients every step of the way to ensure smooth progress.

How do brokers help home buyers save money? How do they make the process of selecting a builder and undergoing construction easier/less stressful?

HBA has perfectly formulated and simplified the best design & tendering service approach to ensure that our clients get what they want within their price range and that all quotes are comparing apples for apples.

We are able to have a large builder panel due to the huge volume of homes we provide. Our builders are hand selected and constantly monitored for service & quality. We only select from our panel those that are most suited to your project.

All our builders quote on exactly the same floor plan, elevation as well as the client Specification which of course would have been completed with HBA’s guidance prior to tendering. All builders provide HBA with a written confirmation to show that they have included all items as per your chosen specification and floor plan.

HBA unique system allows for perfect clarity when comparing quotes.

Is a home design subject to different copyright restrictions when created with a building broker, as opposed to a builder?

Using a builder to draw up your ideas and/or using their standard plans, even though you may significantly alter them, will mean that you are locked into that builder no matter what occurs, due to copyright.

A large reputable broker will ensure that clients have much more control over this situation.

This is especially so when using HBA’s unique system, as builders never have any claim whatsoever on the design.

As the client remains in control, this means they can simply move to another company should any type of dispute occur.

Should a client experience difficulties (delays, budget issues, etc) during construction, is it generally easier to resolve these problems if the client has used a building broker?

Yes it is – but the amount of advantage gained will depend on the size of the brokerage. Essentially the larger the broker the more control they have over the builders.

This is because of the amount of work that they can provide. HBA has a great deal of leverage, which ensures that any conflict resolution is simply resolved.

All HBA clients are more powerful when using our service and will always achieve a better result both in terms of quality and price than when approaching the same builder alone.

Do you know roughly what percentage of home builders in WA use a building broker? Would you say the numbers are growing? If so, why do you think that is?

The % of builders using brokers is quite small as generally builders won’t work with all building brokers. The volumes provided by small brokers don’t offer enough of an incentive to reduce margin % and therefore there is no gain for the builder.

There is also a feeling within the industry that the plans are often substandard as the small companies outsource work, often abroad, leading to problems on site. A large reputable broker will have its own in-house design department, eliminating these simple errors.

HBA has the largest selection panel of builders Perth and is very often the only broker that the builders will work with based not only on our track record of providing extensive business but because of the quality of the drawings we provide.

Do you have a list of preferred builders? If a client wants to obtain quotes from several builders of their choosing, is this something you can accommodate?

We constantly review our list of builders to ensure they give our clients the best possible service, and we make them adhere to very strict guidelines to remain on our preferred builders list.

We provide our builders with a huge number of homes each year & therefore HBA are able to have a larger panel of builders to choose from than our competitors.

HBA are also more than happy for clients to nominate any builder they wish, to be added into the tender process. In fact we actively encourage our clients to seek additional quotes from independent parties as the comparison only serves to show the huge savings we make on the clients behalf.

Any broker that won’t allow you to nominate builders other than their own, should be avoided.

Do you find one particular section of the market (e.g. first homebuyers/builders, downsizers, third home buyers/builders) engages your services, or is it more evenly split across the board?

The type of clients that use brokers are really split across the board. However, the most likely to gain maximum benefit from using a broker would be clients that wish to build larger homes both single and double storey, clients with particular or unusual design elements they wish to include, developers looking to build multiple homes or clients that have unusual or difficult sites to contend with.

The savings would be maximised for these groups. However, there would be savings and advantages to be had for all those seeking to build.

How does a building broker make a commission?

Building brokers are generally paid a commission based on the value of the home.

This can vary greatly across brokers and at HBA we feel that it is very important that the client ask not only what can the broker save them but exactly how much they will be getting paid.

At HBA we are quite aware that we currently receiving the lowest commission of all of our peers in the industry based on information provided to us by a cross section of Perth’s builders.

Do you have preferred designers/architects? Can a client use someone they’ve selected?

We already tender homes for many of Perth’s best designers and architects. So we are certainly more than happy to tender designs brought to us by our clients and we will use their plans to complete our tender process.

However, at HBA we do have our own in-house design and drafting department as all of the larger more reputable brokers will.

Clients can work with our team at a fraction of the cost of using an Architect and we are able to show you hundreds of homes to indicate the kind of amazing work we do at HBA.

As a general estimate, how much money would a building broker generally save a home builder?

Again the savings that are made by the broker are equal to the amount of work the broker can provide.

Builders will only reduce margin based on volume and without a significant volume of homes, being consistently provided, there is no reason to provide any discount.

HBA offer the largest amount of work to builders of all Perth’s brokers and therefore the savings are greater.

With HBA a minimum saving for our clients on the overall costs of a one off designed home is $20,000+. Savings for our Multi Unit Development clients can often equate to hundreds of thousands of dollars.

Do you find there are any misconceptions around using a building broker?

Sales consultants that work at builders are paid large commissions should you build through them and they are fond of telling the buying public to be aware of Building Brokers.

The most common tale is that a broker won’t save you any money and whilst that may be the case with some small companies, when using larger brokers such as HBA, you are absolutely GUARANTEED to save both time and money.