Managing director of L J Hooker Orange, Pat Cutcliffe, says he has heard of some builders who plan to inflate their margins by the size of the grant - as much as $21,000 for building a first home.

"If they will do that, it will be self defeating. People have to develop a better trust of the grants. They help find a buyer for the property but not a buyer at a higher price," Mr Cutcliffe said yesterday.

He said some vendors were simply getting greedy for a slice of the first home owners' grant.

"We've certainly had some inquiries from a couple of people who think they can screw the potential purchaser.

"The grant is a good leg up but it's not going to be a silver bullet for the market and economy," he said.

Some builders however are hoping to lift the housing market out of the doldrums by making first home buying even more attractive.

Kensington Homes' business manager Adam Goodsir said he and his team had a "bit of a brainstorm" and came up with an incentive which makes a new home even more affordable.

"We'll give $9000 to anyone who buys a block of land from us as long as they're a first home buyer complying with the grant scheme," Mr Goodsir said.

“They don't even have to use us to build their home.

“Hopefully, with the hospital building project and mines in Orange, we'll see a stronger economy for longer than 12 months.”

Kensington Homes is building about 12 homes on lots in north Orange and west Orange.

Since the Federal Government announced it would boost first homeowners grants for new houses to $21,000, Kensington Homes has taken about 50 per cent more calls from people keen to take up the grant.

“Rather than increase our profit margins, we've done the opposite,” Mr Goodsir said.

The director of Abacus Homes, Simon Williams, says his company has had only a “pretty minor” increase in enquiries.

"There were a few phone calls relating to it [the grant increase] but, in terms of hard commitment, there hasn't been any.”

He said the increase in the grant was a good idea.

"I have two townhouses for sale in Orange which were open for exhibition last weekend. Only one party went through - a retired couple.”

Mr Williams said builders knew it wasn't worth overquoting or overpricing in Orange because clients “don't just go to one builder”.