For most people, building a new home is the biggest investment in their lives. With so much at stake, finding the right builder is one of the most important decisions you’ll make. As you compare builders, keep these questions in mind.
Get a construction mortgage preapproval by a mortgage lender before you begin this process. It confirms your budget and your financial credibility to builders and realtors.
Decide what type of home you want and need and how much you want to spend. Most builders “specialize” to some degree and may build in a certain price range or type of home. Are you a first-time home buyer, a move-up, an empty-nester or finally building the custom home of your dreams? Whichever category you’re in, search for builders who fit your need.
You want to compare builders and what they can offer so be as clear as you can with what you want from them. If you really want hardwood floors, or an all-season sunroom, share those same details from the start so you can compare accurate pricing and options.
How long has the company been in business? How long has its principals been building homes. It’s important to choose a builder who’s a seasoned professional. Don’t be afraid to ask questions about what they’ve done in the past. HOME Note: Did you know that Builders approved by HOME are evaluated in part on their experience? If your Builder is an HOME Member, we’ve done some of the legwork for you already.
If you decide to build in a community, ask the neighbors questions. Are they satisfied with their home? Would they recommend their builder to a friend or relative? How are they at communicating? If there is an issue in the home, does the builder respond in a reasonable time frame? If you’re building on a scattered lot, ask the builder for references of previous homebuyers.
Not every state has laws or regulations concerning builder licensing but some do. If your state does, be sure the builder you select has the proper licensing as required. Also ask for verification that he has the appropriate insurance to cover his company, his employees and you in the event of a loss or accident.
Every product you buy comes with some type of warranty. Certainly, your largest investment, your home should come with a long-term written & insured 3rd party warranty, not just a promise from the builder to perform. This type of warranty assures you that if there is a warranted problem, even if the builder is out of business, it will be resolved through repair or settlement. If your prospective builder says he offers a ‘one year builder warranty’, it’s time to ask for a HOME of Texas written & insured warranty instead.
After you’ve gone through the above steps and have made a list of builders who have met these criteria, visit their model homes and if possible, homes they have under construction. Pay close attention to the quality of workmanship and materials used in their homes. Are the products quality brands? Are the design features attractive? Are the floor plans suitable for your lifestyle? Does the builder pay close attention to detail, or are there items that look unfinished? Are the employees and/or subcontractors professional, experienced, knowledgeable and courteous? What do the jobsites look like? Do you see any “red flags” such as safety issues?
Lenders, Real Estate Agents, Building Material Suppliers, Builders Associations and Code Inspectors can all provide unique yet helpful perspectives on builders in the area. Ask them who they believe are the top 3 or 5 builders locally and why. A pattern just might emerge and you can use that list as a potential starting point for your research.
Value of a HOME Warranty to You
What Does HOME Membership Mean?
Tips on Choosing a Builder
