You're going to have a new home built for you. Excellent! For many of us, building a new home is one of the most expensive, time consuming, and complex projects we tackle. Who are you going to trust to lead this project for you? Selecting the right builder is critical to the success of building your new home and will have a huge impact on how satisfied are you with the finished product.
Select the builder of five steps: (1) Installation of the candidate list builders, (2) for background checks on them, (3) talk them, (4) Check their references, and (5) Negotiating a contract home building . Each step in the process of further narrowing the candidate list. In Step 2, you're well on your way. Your goal now is to narrow down their list of candidates to 3-5 at the most.
What follows is the information you need to know about the builders of the legwork and research, short of keeping formal talks with them. Save for a select few finalists.
Reputation
What do you think about community builder? Listen to feedback from Realtors and others in the contractor trades. Your challenge will be to distinguish between fact and gossip.
Your mortgage lender may have some great insight on local builders. Run the builders' names loan officer and see what answer you get. You do not want to wonder if you made a good decision when you see a loan officer cringe as you mention your name when builders apply for a mortgage loan.
Take advantage of online information sources. Does the builder have a website? Is the builder active on any social networking sites? Check them out. Are there any statements with respect to the website? Read them. Whether on-line search for Builders business and personal names. See what, if anything, you can learn about the new builder and his company. Run on-line check on the builders of the Better Business Bureau.
Contact the building department in the county where the home will be built to see if any complaints have been lodged against the builder. They may keep records on file for you to see.
Do not forget the popular online sites such as the rating performer Angie's List. While the usual fee-based, cost can be justified if it can be easily recognized artists who are inspired by the adoring crowd of fans and incensed mob of dissatisfied customers. Unfortunately, this site contractor visitors generally do not extend their reach far beyond the major cities or suburbs. Those of you building homes in the boonies are out of luck.
Affiliation
Do you run your own local builder on the basis of business or a salaried employee on national construction company? There are potential advantages and disadvantages to both. It may be that the owner of the local companies will have greater long-term stake in the community where he works. purchase patch national companies can be useful to have in your corner when you are trying to provide materials and labor in a tight market. It's just something to consider.
financial health
How do you know if your builder is financially sound, and does it matter? During construction, before you make periodic payments, called draws, the builder, he pays for all aspects of construction projects, such as labor and materials, the use of cash reserves or credit. We've all heard horror stories about builders who are over-extended themselves and leave the project unfinished, nevermind very rare predatory ones who ask for up-front payments, never intending to finish the job. You do not want that to happen to you.
you can start your own credit check on the builder. There are fee-based services available on-line through the three major credit agencies, which allow you to do just that. Keep in mind, however, that companies and individuals use different systems of credit reports. While consumer credit reporting agencies collect information about you and make it available to companies if you want them or not, the companies report their credit history voluntarily. implication is that business credit reports may not always be entirely accurate. Beware.
Court Actions
Are there any past, current, or court action against builders who have been worrying for you - judgments, tax liens, or bankruptcy? You should be concerned about legal issues that are reflected in his ethics and financial decisions that can affect its current financial standing.
Get information on court action from the court clerk at the county court. Here's how it works in my county in central Colorado. written request is required. Provide the court clerk with the builder's name and that its operations. printed or handwritten report is available. Where I live, at least, this is a free service.
Not every legal issue is one that should scare you away. If there is no question in your mind about any legal proceedings involving your builder, ask him about it when you interview. Hear his side of the story before making a final decision.
Seeing Building Work
If you have a chance to see the builder work firsthand before interviewing him, do it. Maybe the builder participates in the parade of homes event type. Builders are not usually present when their homes are open to the public, so you can visit homes without haste and without pressure. Bring a pen and paper to jot down notes as you tour homes. Write down the things you saw in the house that you like, and especially would like to incorporate into your own home design. Just as important, note the aspects of homes that you do not like or where you would like to ask the builder. It can also be an excellent time to use that camera in your cell phone.
licensing
Is the builder licensed in the county in which your home will be built? Is license current? Contact the county building department to confirm.
Insurance
Is some type of builders insurance required in the county where your home will be built? Once again, your county building department will be able to answer that question for you.
you have already done much valuable work, but has much more to do. Once you have narrowed the list of home builders in several serious candidates, the next step is to make them talk. Get to it!
