How to Select a Builder

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How to Find a Good Builder

So you have decided to build your new dream home. How do you find the right builder? Are you just going to leave it to chance? I hope not. You are preparing to make what is possibly the largest purchase you will ever make. As a buyer you owe it to yourself to practice your due diligence and find a builder who is qualified to build your dream home as well as being someone that you can communicate with about your wishes and desires in your home.

You will spend a lot of time with the home builder you choose, so be sure you are comfortable interacting with them. Building a home can be highly rewarding and a lucrative investment. Taking time to choose the right home builder for your needs will save time and frustration; allowing you to more fully enjoy your new home.

Buying or building a custom home from a cheap builder may seem like a good deal but once the real costs become known, it's to late to do anything about it. Instead of looking for the absolute cheapest price, look for the best value. The best value will offer the best product for the price and not just let the price determine the value.

It’s essential to have good communication for a smooth project. Does the builder listen? Does he or she answer questions clearly and candidly? Can you reach them when you need to? Do they return phone calls promptly? If the builder is hard to contact prior to starting the job then ask yourself how difficult will they be to contact if a problem arises after the home is built.

Here is a list of questions to ask: (red = Howie Construction LLC)

Are you a licensed builder? (yes) An unlicensed builder should be an alarm, possibly indicating lack of experience, prior problems, etc.

How long have you been building homes? (40+ years)

Has the contractor worked under any other name or in any other state? (no)

How long has your company been in existence? (38+ years) Changing names can be an attempt to cover prior problems.

How long have you been in this area? (56+ years) You don't want someone who isn't permanent, ie working out of their pickup, or someone just moving through, or someone who just started.

Is your primary source of income derived from construction? (yes)

Does the contractor have any outstanding lawsuits or judgements? (no) You can pay a small fee to have the local clerk of court perform a search for any prior legal obligations.

What insurance coverage’s do you carry? (fully insured) (You are looking for general liability, workman’s comp, completed operations and builder’s risk.) Verify with your state agency or get an insurance certificate.

What is your primary source of information regarding changes in building codes? (member of Black Hills Builders Association and continual continuing education classes) (You are looking for trade associations such as the home builder’s association or various continuing education classes)

What is your policy on home inspections? (We enjoy inspections! If no municipal or county inspectors are available in the area you choose to build we will hire qualified inspectors of your choosing. Inspectors assure the homeowner everything is done correctly) (You must be allowed to use a code certified inspector)

Check the references of the potential home builder.

Past customers are an ideal way to determine if they do a good job.

Ask if the home was built to their specifications and everything is in proper working order.

Will you provide me with references from your homeowners? (yes, as many as you want)

Due to today’s economic time and the state of the real estate market, You don't want your home builder going bankrupt mid project, leaving you with having to find someone to complete the project at a much greater price, or having unpaid bills and/or liens on your new home. Would you be willing to share your financial information with us? (yes)

Has your company or any other company you have owned or operated ever declared bankruptcy? (NO)

Will you give us banking references? (yes)

Will you give us definite starting and finish dates? (yes, subject to uncontrollable delays such as weather)

What is your warranty? Can I have a copy of your warranty? (yes) Ensure the warranty is comprehensive and will cover all aspects of faulty construction for a period of time. It is rare to see potential issues in a new home within the first few days, so be sure the warranty will cover you for a significant time.