Three surprising things you should know about house-and-land packages
Raine and Horne Murraylands’ Michael Cox explains how a common real estate practice works, and why it might pay to do your homework.
This sponsored story is brought to you by Raine and Horne Murraylands.
If you’re looking for a new home in a growing area, house-and-land packages can be an appealing option.
It’s fairly common to see artist’s-impression images of imaginary homes among all the other property listings you’ll find on any real estate website.
But you might be surprised to learn how house-and-land packages actually work.
Michael Cox, from Raine and Horne Murraylands, can let you in on a few trade secrets – and let you know what to look out for before you sign on the dotted line.
Builders may not have spoken to a property owner
Perhaps the most surprising thing about house-and-land packages is that the builder offering them for sale may not own the land they’re advertising.
In fact, in some cases, the builder may not have spoken to the land vendor at all.
Usually, Michael says, house-and-land packages are offered by large, established building companies.
To them, it is basically a marketing exercise.
A staff member at one of these companies will go through recent real estate listings, just like you, and match vacant blocks to house designs which might fit them.
If a customer ends up showing an interest in that house-and-land package, bingo – they’ve got a sale.
You may even be able to find more than one listing for the same address: one as a vacant block and another as a package deal.
Unfortunately, that means that house-and-land listings may sometimes be out of date – a builder may not always know if a property is already under contract.
You can choose which builder to use
Regardless of whether you purchase a house-and-land package, or do the two transactions separately, you are usually free to engage any builder you like.
Unless a developer makes it a condition of sale, the choice is up to you.
“I’d always encourage you to find the selling agent for the land and have an initial conversation with them before the builders,” Michael says.
“Find out whether … there are any restrictions on what builder you have to use, or whether that is just out there as an option for you to explore.
“Generally speaking, if you see a house and land package online, you don’t have to use that builder.”
What you see may not be exactly what you get
In today’s housing market, where prices are high and rising, the pressure is on any builder to show that they can give you bang for your buck.
Just be aware, Michael suggests, that the house you see in a display village may not be exactly like the one being advertised as part of a house-and-land package.
Before signing on the dotted line, make sure you know exactly what is included or excluded in a building contract: what materials will be used, whether extras like built-in wardrobes or landscaping are covered, and even whether an Adelaide-based builder plans on charging you for their travel time.
It happens.
“In the display village, a home may have all-upgraded-everything and look amazing; but the ‘priced from’ (version), which happens to be $150,000 less, may be a very different kettle of fish,” he says.
“There may be a lot of things in there that, for a standard build these days, you would probably assume (would be included).”
So why do house-and-land packages exist?
Years ago, Michael says, it would be common for Murray Bridge real estate agencies and builders to join forces and offer a package deal in an attempt to stimulate interest in a property.
But today, with local values climbing faster than anywhere else in Australia amid sky-high demand, you’re not likely to see that very often.
Most local builders have all the work they could ever need and more.
Still, there are benefits to both vendors and buyers.
A vendor may use a package deal to get their land exposed to more potential buyers.
And for you, the buyer, a house-and-land package can give you ideas about the sort of home you may be able to build on a vacant block, and be a useful starting point on an overall budget.
Some buyers may find it easier to get finance for a package rather than land and a house separately.
Just be aware, Michael suggests: “Like a lot of things in life, if it looks too good to be true, it probably is.”
- More information: Visit www.raineandhorne.com.au/murraylands, call 8532 3833 or drop into Raine and Horne Murraylands’ office at 4 Seventh Street, Murray Bridge.
- Read more: Build or buy: Which is my best option in the Murraylands?
Advertising to more than 20,000 highly engaged locals can do wonders for your business. Call Murray Bridge News’ Jane Intini on 0418 835 768 or email jane@murraybridge.news.
Peri Strathearn
