Hi,
We have bought a couple of units so far but have started looking at landed properties with view of making some improvements (adding an extra building or car park, etc) for long term investment. The issue we have is that we do not know how much it might cost to get a job done, hence, making it difficult for us to make an offer for a property.
Can we get a builder to go for the inspection with us and give us a free quotation? Is that the normal practise? And are we obligated to use the builder should we end up buying the property?
Sorry, really at a loss here. Thanks for any advice.
if you get a building or pest inspection, they are generally precluded from carrying out the work due to a conflict of interest. Using a builder to inspect & quote may not provide you the peace of mind for the pest/building inspection but only guide you on cost. There is no obligation to use any builder.
Thanks Scott, we'll do the building & pest inspection separately but the issue we have is to determine the cost of a future project.
For example, we saw an old house on a large block of land in inner west Sydney and we're hoping to either renovate it and rent the house out or tear it down in a year or two and build a dual occupancy home (we can't build 2 homes on it as the land falls short of minimum lot size for 2 separate title properties). However, we don't really know how much it cost to renovate or to rebuild a home. Hence, should we call up a builder randomly and bring him to the inspection and ask for a quote for renovation or rebuilding? Is this the normal approach for investors with little knowledge in renovation & rebuilding?
Obviously, having an idea what can be done on the potential site will help us determine how much to offer for the property as well.
From the flipside, the builder will only be able to give you a really rough figure (which noone can be held to) as there would be no drawings, no specification or council condtions.
Unless the block is a difficult site (ie anything but square and flat), you would best get a rough guide to a new duplex/house price from one of the project builders then add % above that for the extra works involved eg demolition, clearing trees etc.
Thanks again for your reply, Scott. You've been a great help.
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