If it’s your first time going through the home build process, one of the most challenging aspects can be understanding the terminology.
Learning the technical terms and definitions will make your life a whole lot easier when it comes to talking to your builder and understanding the various processes that take place throughout your build journey.
Which is why we’ve written up a little glossary down below to help you learn the lingo! The following terms are some of the most common that you will come across, from financial steps, to building processes. Let’s dive in!
Appraisal – Simply put, an appraisal is a valuation of your property that you get when buying or selling.
Asset Protection – Is a type of insurance that covers any damage that may occur to council assets during the construction or demolition of your home.
Building Permit – Issued by a local government body, this permit allows your builder to commence the construction of your property. Typically, your builder will organise this for you.
Design Guidelines – Often implemented in new housing estates, design guidelines are a list of parameters put in place to make sure homes are developed in unison with the local community and surrounds. It’s important to understand if there are any guidelines your new home design will need to follow if you have purchased land in a new estate.
Earthworks – Before we can lay the concrete foundations of your new home, we may need to move soil and rock to ensure your land is level so we can begin construction.
Fittings – Are items that can be added to homes during construction, however, they can be removed later down the track without causing any damage to your home. For instance, dishwashers, shower rails, blinds etc.
Fixtures – Are things that are added to your home during the construction phase but cannot be removed without causing damage to your property. Such as walk-in robes or windows.
House and Land Package (H&L) – A tailored package that has been designed to work with a specific block of land. If you don’t own a block, this a great way to build a home in some of Australia’s most sought after suburbs. Check out some of our current House and Land packages here.
Initial Deposit – This is the first deposit that’s put down to secure your build. Here at Coral Homes we only require you to pay a deposit when you are 100% happy with your free estimate and are ready to move ahead with a preliminary agreement.
Lenders Mortgage Insurance – If you have a house deposit of less than 20%, lenders will usually charge you insurance on top of your loan in case you default on your mortgage.
Lot Size – This one is fairly self-explanatory. A lot size is a reference to the size of a piece of land. This will help determine the size and type of home that you will be able to build.
Pre-approval – Whether building new or buying an existing property, you will have to have proof of being approved for a home loan. Pre-approval is evidence from your bank that they have conditionally approved a loan for you.
Settlement – A settlement is the last step of the sale process. During this stage you will complete the payment of the contract price to the seller or builder and take legal possession of the home.
Settlement Period – This is the amount of time that is taken between the exchanging of contracts and you taking legal ownership of the home.
Site preparation – Before construction commences on your new home, a surveyor will be required to outline landmarks on the premises such as where the fences will be placed and where the building foundation will go.
Stamp Duty – When a home is purchased or built, the state government applies a tax on the value of the home or land being purchased. When building a new home, you will only be required to pay Stamp Duty for the purchase of the land. If it’s your first time building a new home, you may be eligible for concessions to cover the Stamp Duty on your land. You can find out more about these concessions here:
Tender – A home builder tender is a document that forms part of the initial contract for your home build that includes a formalised quote and estimated construction timeframe. A tender commitment typically contains site costs, house plans, and building site details among other things.
Title – A Title is an official record of who owns a piece of land, and in the case of building a new home, by owning the Title to a piece of land, it means you have permission build on it!
While there’s plenty of other terms and phrases that you’ll get used to over the course of your build journey, this list should help you get a grasp of the basics and prepare you for that first meeting when you sit down with your builder.
Our New Home Consultants are also happy to help answer any questions you may have about the home build process. Book an appointment today to find out how we can help build your dream home.
