Price Per SQM | Simone TV: Episode 39
On this episode of Simone TV, Daniel explains why the popular “Price per SQM” does not help you compare builders. Many people use these figures to compare different builders. They also use this figure to help determine what they think their own budget should be. The fact of the matter is that there are just too many factors that go into pricing a home. Even the most simple little things can change the price per square metre.
Price Per SQM
Have you ever picked-up the phone and asked the builder, what do you charge per square meter? Today, I want to talk about why I’m having a problem with this and some of the things that needs to be taken into consideration when actually asking for the price.
The three things that we are going to cover are the Design & Layout, the Materials Used, and the Inclusion Level.
Let’s just start off with why I have a problem with that. People are actually asking for price per square meter. Realistically these number that you are going to be given it is just going to be actual made-up number. It is not going to be factual because it is very unlikely you are going to know what the person giving you the price is actually saying, like what type of design & layout, what type of materials used, and what type of inclusion levels.
Someone can just give you some random number and you could actually be hoping that you actually going to get what you want within that price range with an actual fact that the actual finished product giving nothing like that.
The three things that we are going to cover today:
Design & Layout
What type of design and layout they are talking about? Let’s say for example, you are talking about a simple design and a home layout that it is just a basic square (draws square). And let us call the square meter range of that 200 squares. Let’s say for example you have another design that is really hardly architecturally designed and it is just not a square box and it looks something a little like (draws design), and now let’s call that 200 squares.
As you can see you can see the actual difference in design and layout. Something like this (architecturally designed) can become a lot more labour intensive and a lot more time intensive and so that is why people are going to have to paying a lot more to actually do this compared to doing this (basic square). Using all the ins and outs, all the different angles and all different room takes time. So this is why here, when talking about price per square meter, the design does come into play because something that is going to be the same size will definitely vary because of the layout of the actual home.
What type of materials they are using? A lot of these days there’s more than ever different types of materials that you can actually build your new home with. You can actually build it at a timber, concrete, bricks, no bricks, how much glass do you want, and the list is absolutely endless. In saying that, the same something here (referring to the designs). If I will build this house out of bricks and timber (basic square) and I will build this house (architecturally designed) here out of cladding but I want all this wall to be glass; that is a big impact that can change the price. So then it just goes back to price per square meter it is just literally a made-up price.
What type of inclusion levels? Last thing we are going to touch on is inclusions levels. Now with inclusions levels there are two different angles we can take here. It is what inclusions do they actually include and then of those inclusions what level do they include. Let us say for example floor coverings. When someone give you a price per square meter do they include floor coverings or not?
When someone gives you a price per square meter, obviously they are going to include a tap. I could probably give you a $2 tap, I can get you a $20 tap, I can get you a $200 tap and I might be able to get you a $2000 tap. But you could see here clearly the difference between the inclusions and how the price can affect it. You might have 6 taps at $20 per tap, you might have 6 taps at $200 per tap. This is not only for taps this could be for handles, this could be for sinks, appliances, and toilets. Everything have a different price range. That is why it is very confusing when you asked someone what do you charge per SQM?
Find A Builder You Can Trust
I highly recommend not to do it. If you know anyone who is shopping around and you hear them throwing around ‘Price per Square Meter’ show them this video! There are a lot of people come to me and actually say that they got the average square between all of their friends homes and they based their budget around that. But they have not taken into consideration that all these houses are built differently. They all have different materials, different level of inclusions. It really makes it a lot more confusing so I highly recommend not to do it.
If you hear people talking about price per square meter tag them in the comments below because they need to watch this video. If you are unsure about anything we talked about in this video leave me a comment. I will do my best to answer all your questions. Alright guys thanks for watching bye for now.