We hear it all the time — people sign a contract with a builder, thinking everything’s sorted. And then, boom, just before starting the house, the builder asks for an extra $70,000.00.
Why? Well, maybe that “cheap” block was cheap for a reason.
Maybe it has a 1.5m fall, so the builder needs to level it by cutting and filling or importing soil. Or maybe the lot’s narrow at the front and wider at the back, meaning the “tried and true” design your builder specialises in won’t actually fit, so you have to fork out for a custom job.
The only way to stop a cheap block from turning into an expensive nightmare is to…
Understand Exactly What You’re Buying Before You Sign
Here are 5 safeguards to make sure you don’t get hit with surprise costs after you sign your building contract:
Safeguard #1: Be careful with land that’s below the market average. A low price tag is a red flag. The block might be steep, require expensive excavation, have tricky access, or sit near high-voltage power lines (which tank your valuation). Avoiding these traps means you won’t be stuck with a block that’s hard to resell or costs way more to build on than you originally planned.
Safeguard #2: Get a soil report before you sign. A block might look solid, but it’s what’s underneath it that matters. Often, this stuff isn’t obvious just by looking at the block. Soft soil, for instance, might mean you have to reinforce the slab with extra steel or do some screw piling. These costs are usually in the tens of thousands.
Safeguard #3: Ask for engineering reports from the developer. Developers have to provide them if you ask, but they won’t hand them over unless you do. These reports show land slope, drainage issues, and anything else that could cost you later. Some blocks that appear level might actually require extensive retaining walls, which aren’t factored into the initial pricing. If you check these upfront, you won’t end up in a situation where your builder suddenly needs to add major structural reinforcements just to make the block buildable.
Safeguard #4: Get a builder to check the reports. A lot of people think you only involve a builder after you buy your land, but that’s a mistake. By then, you’re locked in, and if the block has expensive site costs hidden in the fine print, there’s no way out. Even with the aforementioned soil and engineering reports in hand, you might not know what you’re looking at. This is a great time to involve your builder. They’ll zoom in on the fine print to help you spot costly issues before you commit.
Safeguard #5: Lock in a fixed-price contract. Without a fixed-price contract, your builder can hit you with sudden cost increases for things like additional excavation, deep piering, screw piling, or drainage work that wasn’t accounted for in the original estimate. Choosing a builder who offers fixed-price contracts means the price you sign for is the price you pay. No shock invoices, no budget blowouts, no scrambling for extra cash halfway through the build.
The Bottom Line? Get It Right Now, Or Pay Later
When you buy land, you either know what you’re getting into, or you don’t. If you don’t, that’s when things go bad.
So get the reports, ask the right questions, and double-check everything before you sign.