Knock Down and Rebuild - The Costs & Process

Dreaming of a new home but don't want to move? A knock down rebuild could be the perfect option for you.

Why not stay in the location you love and design your dream home from scratch to suit your environment?

Don't let the unknown hold you back. In this article we explain the process from start to finish and how to go through the steps efficiently and cost effective. More importantly, we explain what NOT to do, which could save you thousands!!!

Firstly let's cover off the Knock Down Rebuild Process through 6 easy steps:

Step 1. Get an understanding of the costs

There are a number of ways to go around knocking down an existing dwelling and rebuilding a new dwelling. But in this article we are going to stick to explaining the easiest way for you as a client and the most cost effective way.

Firstly you need to get an understanding of what a new home costs to build these days. Sure, now you can go around to all the builders and get hammered with quotes, but I think it's easier to begin with a ballpark figure as a starting point and go into the detailed quotes once you know it's a realistic budget.

New Home Construction - A budget of $300k for a simple average figure for a fully finished new home would be sufficient. Now, you could build a very small dwelling for less OR we could go into more detail and explain how the other builders will advertise low base (or bait) prices starting at $230k etc. But realistically for most new houses these days you will be looking around that $300k mark fully finished. As the builder, we will take care of all the pre-construction work including; architectural drawings, certification, soil tests, contour survey, engineering and council approval. These costs are always included in our build prices.

Demolition - Depending on your existing dwelling, asbestos, your location and which demolition company you use, the quotes can vary. But generally for a demolition you will be looking between $15k to $35k. Be sure to work with a demolition company who will organise the demolition approval through council too.

Step 2. Personal Assessment

I think it goes without saying that before you go getting too excited about the new house you want to design, you need to assess to see if it's a realistic possibility for you and your family.

Obviously in order to build a new home, you need to pay for it somehow. So using the figures above as guideline, you can discuss with your mortgage broker what potential budget you can work with.

The next thing you need to consider is the timeframe and your living arrangements during that period.

Generally build timeframes in the current market are between 6 to 9 months (depending on your project). It's important to note, some other builders are pushing their contracts out to 18 months. So if you aren't building with Brookmoore, be sure to ask the builder the timeline for their build.

Step 3. Design Your Home

Ok, so now you know your budget and you know when you will be ready to get started, it's time to start designing your dream home.

There's two main ways to do this - you can choose from a pre-made floor plan that many builders display on their websites, OR you if you go through Brookmoore homes we are one of the rare builders who will allow you to design a custom home from scratch suited perfectly for your block and your lifestyle. It's important to know Brookmoore design custom homes every day without the "custom price tag". Meaning, we can build your design, how you like it, for a better price than most.

When you have your design in mind, you can discuss with our consultants on how we can make it work for your block within your budget. We bring you into the design process and explain to our clients what's cost effective and what's expensive when it comes to design and features. So that way we can help you find ways to get the best value for your money with everything you want/need.

Step 4. Council Advice

Once you have decided on your plan and inclusions. Our team will engage your local council to review the plans of what you are looking to build. To check it meets all the necessary council requirements for approval.

Step 5. Drafting & Contract Prep

The next step from here is to secure your quote and your build position through an Expression of Interest & deposit to cover the drafting and contract preparation. Our drafting team will get your plans drawn to fit your block and we will work to prepare a contract.

Here at Brookmoore we ensure that our build contracts are always completely subject to finance. Meaning, if your finance doesn't get approved you won't be locked into anything.

Step 6. Demolition & Construction commence

If all goes well and your finance is approved, the next stage from here to prepare for you demolition and new home construction. Our team will help you get quotes for demolition and assist with dates to work with the construction team. Generally most demolition jobs can be booked within a 3 to 4 week window. As mentioned earlier, Brookmoore Homes as the builder will work on all pre-construction steps to get the approvals in order to build the new dwelling. As soon as the building approval comes through and the house has been removed, our construction team will hit the dirt and get moving. You will be comforted with constant updates through each stage of the build.


Engaging Architects First

One of the most common mistakes we've found is when clients engage an Architect to design their dream home first.

Now, don't get us wrong, architects are amazing. They will listen to your requests, your ideas and your dreams and they will often create a masterpiece. However, many of them will draw exactly what you are asking, without being conscious of the cost to build such projects. Remember they are paid to design your home as you request, not price the build.

The common theme is that clients end up paying sometimes over $5,000 for architectural plans, but then shop around to different builders only to find out no one can build it within their budget. Then they have to start again.

When working with a building company like Brookmoore Homes, our team will walk you through each stage of the design process and guide you through the expensive ideas you bring to the table and offer solutions to be more cost effective. This way you can design the house you want within the budget you set from the start!

Get a build quote in the appropriate timeframe

Many people think that when they get a build quote then they will need to start straight away. This is not correct. The process from getting a quote until actually starting the build can sometimes take up to 3 months to get going. As there is a lot of designing, planning, finance & preparation to be done before we hit the dirt. Note; it can be done quicker if some of the above has already been started. But generally the best time to get things moving would be 3 months out from when you want to start building.

On the other end of the spectrum, you don't want to be getting quotes or finance organised too far out. A simple way to put this is, don't waste time getting finance or a new home quote for a build you won't be starting for another 12 months. As the quote would no longer be relevant. Give yourself some time to get prepared but don't jump the gun too early.

Don't get sucked in by bait advertising

The most common way the big name builders will advertise is by using what they call a base price, but we like to call it a bait price. This is where you see the advertisements for new homes starting from $200k. The base price is what you would call the shell of the house with the bare essentials needed to classify it as a house. They do this to attract people in by thinking they have the cheapest build prices. Only to eventually upsell you everything you actually need in the home, for you to then walk away spending $100k more than the advertised starting price. Remember, if it seems too good to be true, it probably is. There are so many key components to building a house and these quotes and build contracts have many different looks. So it's important to go over the quote to ensure nothing is missing and that you won't get hit with any surprises later on.

Here at Brookmoore homes, we pride ourselves on being able to deliver a high quality build at some of the lowest industry prices. So when clients come to us with other quotes from other builders and we compare them side by side. Generally we can pull a part all of the things they have left out of their pricing that we include as standard. When we give you a quote we are certain to explain anything it does not include and everything it includes, in very clear and easy to understand terminology. The last thing anyone wants is hidden surprises. We ensure it's all laid out on the table from the start.

Don't Procrastinate

"A year from now you will wish you have started today".

Over the past 12 months we have seen property prices increase in parts of Brisbane by over 30%. Land values have soared across the board and in result the cost of trades and supplies have risen also. This has driven the average cost to build a new house to increase by over $60k in the last 12 months and it doesn't look to be slowing down any time soon. If you are thinking about rebuilding your dream home, the sooner you get started, the sooner you can secure today's pricing and save thousands.

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