Choosing a Home Builder is an Important Decision – Here’s How to Get it Right

It’s the question every client asks at some point during the design process: “What builders do you recommend?”

Many people who are considering building a new home worry more about choosing a home builder even before they think about the Architect, the house design, decorating, a property to build on, or anything else.

Why? Because ultimately, the builder is the one responsible for getting it done right; the guy you’ll be writing the really big checks to.

And because your choice of a builder can make or break your project.

But won’t any builder you choose be working with the same set of plans? Don’t all builders have to build to the requirements of the building code? Don’t they get the same prices from their suppliers? Doesn’t your building contract spell out exactly what the builder must do?

The answers to the questions above are: yes, yes, no, and maybe. But those answers have almost nothing to do with the success of your project.

Let’s be clear here – the world is full of excellent builders. Great builders, in fact – a few I know are extraordinary. I’d go so far as to say the builders I recommend do everything in their power to provide a quality service and product to their clients.

Those are the guys you’re looking for, but there are also guys to avoid.

Everyone’s heard horror stories about building and it’s one of the biggest fears of new homeowners.

But it’s not always the builder’s fault when things go wrong – sometimes it’s your fault. When it is, it’s because you A) didn’t thoroughly research your builder’s credentials; or B) didn’t prepare a detailed set of plans and specifications; or C) tried to get high quality work for a low quality price.

Differences in expectations are the root of all evil in the design and construction business. It’s not enough to assume everything’s going to work out, you have to know who you’re working with.

And you have to know exactly what you want to have done.

I had an interesting conversation with a young couple at a party a while ago; they’d built their dream home with a local builder and everything had gone wrong. It took too long, it cost too much, and the builder declared bankruptcy before the house was done, throwing the whole project into chaos. What a shame!

I knew of the builder and I knew of his reputation (he’d declared bankruptcy several times before) so I asked the couple what had convinced them to go ahead with him given his checkered past. “We didn’t know about his past issues,” they answered.

Check out these articles to learn more about getting started on a new home or remodeling project.

As it turns out, they hadn’t checked him out at all – a new model home with a sign in the yard was enough to convince them to hand over $500,000. I’ll bet they spent more time researching their flat-screen TV purchase.

That builder, by the way, has fled town and has set up shop in another unsuspecting suburb in another state…

Research the Builder’s Reputation

Just because the builder has completed projects successfully before don’t expect that yours will be successful too. You must thoroughly research the qualifications and financial history of anyone you’re going to hand over hundreds of thousands of dollars too. I can’t stress this enough – do it!

Get Complete Drawings and Specs

Don’t sign a contract without a full set of detailed construction drawings and complete specs. This is the cause of most problems – and one of the chief jobs of your Architect. The neat features and details you saw in the model home won’t be in your home unless you specify them in the construction contract.

That’s what “specs” are – a listing of all the finishes, fixtures, and features that will be in your home. Without that, you can only hope you’ll get what you want.

Don’t Automatically Pick the Cheapest

Don’t automatically pick the cheapest guy and hope that he’ll deliver a quality product. There’s a reason why he’s cheapest, and it’s not because he’s giving away free granite countertops.

I’m constantly amazed by how many otherwise intelligent and accomplished business people are drawn to the lowest bidder and ultimately to disaster, like a moth to a flame.

How To Find The Best Builder

Start by building a nice, long list of potential builders from:

• The recommendations of your Architect
• Friends and neighbors who’ve had good experiences
• Building-products suppliers – they’ll know who has good credit and who doesn’t
• Real Estate brokers who work in your neighborhood
• Local financial institutions that lend to builders
• The Better Business Bureau
• Angie’s List (angieslist.com)
• Your local Home Builder’s Association (find them at www.nahb.com)

You’ll probably hear a few names repeated from different sources. These four or five builders should become your short list. Set up a meeting to visit each one at their office. Talk to them about their approach to building.

You’ll probably hear a few names repeated from different sources. These four or five builders should become your short list. Set up a meeting to visit each one at their office. Talk to them about their approach to building.

Look for indications that they’re interested in what you want rather than just getting you to sign up with them. Ask lots of questions.

Ask for references and call every one. Take the time to call references and ask questions. You’ll be surprised what people will tell you, good and bad!

Finally, visit several new and older homes they’ve built – without the builder along – and ask the owners about the experience of working with them including their experiences with “service after the sale”.

Look at the quality of the construction of the home. Take your Architect with you if you don’t know what to look for.

Is it a lot of work? Yes, but you’re spending a lot of money. Protect your investment and your sanity by finding out everything you can about the builders you’re considering.