Shopping for the right home loan can be confusing. Should you stick with a bank you know and trust? Visit a few banks and compare? Or head straight to a broker who can provide recommendations from multiple banks?
Over 60%* of Australians opt to use a broker. The fundamental reasons are that they make the process easier, and they can often get a better outcome due to their multiple suppliers all competing for your business.
The same process applies when selecting a builder to complete your project, you could start by approaching a single builder, several builders, or you could go to a building broker.
Building brokers have been around for decades. They act as an advisor and walk customers through the entire building process from inception to completion, avoiding any pitfalls. They ensure you get the best builder for your specific project needs and budget.
Image 1.1 highlights a typical building broker transaction. It outlines that a broker can reach several builders in their network, compare the best deal, and then make their recommendation to their customers. In this example, the customer has avoided the 3 higher priced builders and managed to save $20K on their project with the brokers assistance.
This current broker model is effective and is reflected in how commonplace they are in most industries (not just building and finance). However, there are limitations to this model as brokers can only create competition based on a single customers value. Ie. A single $500k project for any builder is appealing so one will always emerge as most competitive.
We at Buildshare™ are the only broker in the building industry that doesn’t have this limitation.
As seen in image 1.2, Buildshare’s key difference is that we combine multiple individual projects into one combined project. We then broker this combined project to a range of our skills-matched builders.
With this increased scale of work our builders can negotiate subcontracts and materials at lower prices by applying bulk buying principles. Their internal labour costs are also reduced as their staff can be utilised more efficiently across multiple projects simultaneously.
The savings generated using the Buildshare™ model are then passed straight through each customer. Depending on variables such as the total number of projects and the individual project values, Buildshare™ customers often end up with prices 6-12% lower than an individually negotiated quote. The project is the exact same but the price is significantly cheaper. See Image 1.3 as a guide.
To see how much Buildshare could save you on your next project, check out Our online calculator.
*According to theadvisor.com.au