Does the builder have an established name and proven track record?
A few phone calls to the local builders association, lending and title companies, and real estate agencies will provide insight into the builder’s background and reputation. Contact existing customers of the builder to determine if they possess honesty, integrity, and consistently deliver on their promises. If the builder is unable or unwilling to provide this list, it should throw up an immediate red flag.
Building a home is a complex process that involves the combination of hundreds of parts and pieces. When you then factor in the uncertainty of weather, potential material or labor shortages, development or utility provider delays it is safe to assume there will be some challenges to overcome during the construction of the home. How your builder responds to these challenges and works with you in resolving them will greatly big impact on your overall satisfaction. Building a new home should be an enjoyable experience, so be sure to choose a builder with an established name and proven track record.
Is the builder financially sound?
Look for strong, long-standing relationships with the banking community and timely payment to contractors and vendors. These are strong indicators of a builder’s financial stability. A long list of lien filings or late payments is a definite warning sign. Ability to complete the home is one concern, but servicing the home in the future is equally important.
What is the structure of the company?
Too large of a company means dealing with several departments and individuals and will likely lead to inaccurate, untimely, or conflicting information. It also means “climbing the ladder” to have conflicts or disputes resolved. Too small of an operation means the builder is likely overwhelmed and unable to construct your home timely or respond effectively to your questions and concerns. Either way, you end up frustrated and unsatisfied. Be sure to understand the entire process and exactly whom within the company you will be dealing. Also, be sure the principles of the company are actively involved and readily accessible.
Does the builder have long-standing relationships with subcontractors and vendors?
Any builder is only as good as the subcontractors and vendors supplying the labor and materials to construct the home. A builder with long-term vendor and subcontractor relationships is much more likely to deliver a quality product and service since they know the builder’s standards and requirements. A builder that continually switches contractors or vendors is either not paying his bills or simply using the cheapest labor and material available.
Does the builder have a clearly defined set of building specifications?
The specifications tell you what type of materials will be used in the construction of your home and should be part of the builder’s contract with you. They also provide the basis for any preliminary pricing that the builder is quoting you. While prices from one builder to another may be comparable, the end product may vary greatly if the specifications are different. Be sure your builder provides the specifications to you in writing and that they are consistent with what you want.
Does the builder provide a written warranty and service procedures?
Your relationship with your builder should not end when you close on the home and take possession. Even the best built home is likely to have minor warrant items that need to be corrected. All builders know this and the best will have clearly defined, written program for handling warranty requests. They will also provide you with a home care manual to inform you how to properly maintain your home to prevent problems from occurring.
Has the builder provided all costs upfront?
A home is a huge investment; the last thing you want to experience is hidden costs and unexpected fees after construction has begun. Look for a builder that provides a firm contract price, not just a list of allowances as well as detailed pricing for options and upgrades. Also, in the event you want to make changes during construction, find out the change order policy and if there are any fees associated with change order requests.
Does the builder offer design services or custom changes?
Each family has its own lifestyle and your home should accommodate that lifestyle. By offering design services and custom options, a builder is able to give you exactly what you want in your home. Some builders simply offer a set of standard floor plans and selections with no option to change or modify them, which may or may not work for you. Others offer design and custom changes, but only at an additional cost. Regardless, be sure to understand exactly what is and isn’t offered by the builder.
How does the builder manage the construction financing?
Some builders will secure the construction loan in their name and others will require that buyer to do so. Either way there are interest, draw, inspection, and other fees associated with the loan and you want to be sure to determine if these expenses are included in the final contract price. Also ask about down payment or other draw requirements.
What is the builder's normal timeframe for completion?
After all this work, you obviously want to know when the home will be ready for you to occupy. Ask your builder to take the time to review the typical construction schedule with you and provide an estimated completion date. Keep
in mind, there are several factors (weather, material shortages)
outside of the builder’s control that can adversely affect and delay
construction.
Do you feel comfortable working with this builder?
After answering the previous questions and any others you may have, it ultimately comes down to what your instincts tell you. If
you have an uneasy feeling or uncertainty that the builder will deliver
on the commitments and promises made, trust your feelings. Not every builder is the right for every customer and vice versa. The investment, both financially and emotionally, is too large to enter into without strong convictions.
|