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Selecting the Right Home Builder

You should shop for your builder as carefully as you shop for the right home.  That means looking beyond the style, and beneath the surface, of both.  The right builder can make your new home experience all that it should be. Because the average home buyer only buys 2 or 3 homes during their lifetime, having the in-depth knowledge necessary to make the right decision is more difficult than most decisions you will face.

Aren't All Builders About the Same?

Absolutely not.  All home builders are definitely not created equal.  Builders have different levels of expertise, expertise, and reliability.  You'll want your builder to have a very thorough understanding in all areas of construction, including: floor plan design, proper foundation design and installation, material selection, construction scheduling, time management, inspection processes, interior decor, and so much more.  You'll certainly want someone with many years of experience and someone you can really trust - a builder who is established, reputable, and has a significant track record.

We've all heard the horror stories of people who choose the wrong builder.  A bad decision in builder selection can cause severe, irreparable financial damage to you and your family.  You can end up with a poorly built home that needs frequent repairs.  You could also end up with a half-finished home, or even no home at all.  That said, here are some of the basic characteristics I look for in builders and questions you should ask when interviewing:

How Long Has The Builder Been in Business?

A new home builder, or one in financial trouble, won't have the ability to stay in business if even one significant thing goes wrong  during the construction of your new home.  Where might that leave you if your new home is half-built?  To determine if the builder is too new or is in financial trouble, visit their model home...or even other homes they may have for sale.  Even better, go and visit them in their construction office.  You can tell a lot about how a builder operates from how well they maintain their own job sites and offices.  If there are no model homes or they work from their vehicle, that should tell you all you need to know.

How Many New Homes Has The Builder Completed in the Last Year?

If a builder has only built a few homes, he may be having financial problems or lack experience - which can become your problem.  Builders who service a larger number of customers can normally offer economical pricing by taking advantage of economies of scale.  They should be in a better position to offer discounted pricing, because they build more homes and purchase raw materials more cheaply in greater quantities.  Of course, there are always exceptions to the rule - builders specializing in very high end homes come to mind.  You may ask, "well what if I'm using a great builder, but they're just getting started in the business?"  There are builders out there who just don't build that many homes every year, for varying reasons.  While it's certainly okay to use them if you know they're doing a great job and they're reliable, your financial risk increases significantly.  The important thing is to be aware of the risks you're assuming - before you make your decision.

Does The Home Builder Have Customer References You Can Call?

The best home builders have dozens of their customers you can call.  If a home builder doesn't have references, it should cause you concern.  A customer that has been in a builder's home for several years can testify to the quality of the home, the service of the builder, and their reputation. But, don't stop there.  I recommend you actually stop by and have a nice, long conversation with the customer the builder referred to you.  Ask them if they would purchase another home from their builder.

Then stop by and visit the neighbor next door and ask them the same questions.  If a builder has "skeletons" in their closet, they're certainly going to be intelligent enough to conveniently leave those problems right out of their contact lists and testimonial letters.  Most people are more than happy to talk about their home and their experience with the builder, so take advantage of this fact and do your research.

How Do I Know I Am Getting Quality for My Money?

A cheap price doesn't necessarily mean you're getting a good deal. It means you are getting a cheap deal.  As the old saying goes, "you pay for what you get."  If one builder quotes you $90,000 for 2,000 square feet and another quotes you $110,000, it may be easy to tell yourself to go with the cheaper builder.  But, ask yourself "Where is the cheaper builder cutting corners to cut his price?"  You may not be able to tell up front, but if you buy a cheap house, in a couple of years, when it's falling apart...you'll know then.  Any quality builder can provide you with what we commonly refer to as a "spec sheet."  This sheet lists all of the materials used in the construction of their homes.  You'd be surprised at how many builders have difficulty producing this magical document.  Although it doesn't demonstrate any insight in the the builder's job performance, it will outline the quality of the materials used during construction.  If a builder can't or won't produce the document, it could be a sign that the builder doesn't build that many homes, that there construction "systems" are not in place or don't exist, or that they don't adhere to reliable processes and methods.

Is The Builder A Professional Builder?

This is one of my personal favorites.  Is the builder a member of the Better Business Bureau?  Ask whether they are members of the National Home Builder's Association or their local builder's association.  These organizations have standards and a "code of ethics" that their members must adhere to.  Is construction the builder's full time job, or is it his sideline occupation?  Building a home is a full-time job.  A jobsite must be supervised on a daily basis, and that takes a lot of time and effort.  A professional builder will have the time to focus on building your new home right.  A part-time builder may not be able to even supervise the job site.

Here's why you should know.  I stopped by a local jobsite that I'd been watching for a few months and talked with the buyers who were having a home built right next door to one of the homes being built for one of my clients.  Both homes were begun approximately at the same time, but ours was near completion and theirs was still at the slab stage.  I asked them how they liked their builder and who construction was going, only to receive blank stares in reply.  They mentioned all of the problems they've had getting the builder to actually work on their home, how he didn't seem to listed to what was really being said, and how everything they'd asked for in their new home was either not installed or installed incorrectly.  In fact, one of the windows that was supposed to be installed in the main living area lay right there on the floor and the framers were actually standing on it while they were framing a much smaller window (which they hadn't asked for) into an exterior wall where the fire place was supposed to be (but wasn't).

I took the time to explain to them some of the reasons why this could have happened, but they seemed surprised to find out that their builder had never built a home before. In fact, he was a painter on many of the local job sites and only worked on their home when he had time.  He had no normal crew rotation or timelines, because he wasn't big enough to maintain crews for each facet of construction.  He fought daily with larger home builders in the area just to get the most mundane things accomplished.  If he'd been up front with his customers, they could have avoided all of this.  This is just one of the many situations where ethics did not come into play.  What he did may have been legal (I doubt it), but it certainly wasn't ethical.  Being ethical means doing the right thing.

Shop For Quality And Value, Not Just Price

Price is the easiest thing to shop for in buying a home.  We all want everything for nothing, it's human nature.  Since builders know price is usually the most important criteria for buyers, it's usually the most misleading aspect of your decision. When examining a home, look at the quality of the construction.  Inspect the quality of everything you can see: the framing, foundation, cabinets, carpeting, tile, trim work, and more.  Ask a lot of questions. Keep value in mind when shopping - not just price.  Just because a home is less expensive than another doesn't mean that it's a better value.

Ask Questions About Service After the Sale

What kind of service can you expect after the sale?  This is another one of those questions that you need to ask the next door neighbor about, not just the people on the builder's reference list.  Most home builders will offer a one-year construction warranty.  A quality builder will repair defaults in workmanship and materials - and most importantly - still be in business to be able to fulfill their promises during the warranty period.  Ask the builder this, "If I have a problem with something after the sale, should I call you or someone else?"  If they tell you to call someone else (i.e. the contractor that originally did the work), you might consider dropping them from your list.  If you can contact them directly, keep 'em.  You'll want a builder who coordinates repairs for you, not one that pawns you off on someone else.  Reward quality, not incompetence.

Quality Construction Signals

Looking at the surface of a home, inside or outside, it's often very difficult for you to determine quality unless it's obvious.  The floor plan, design and decor do matter, but what matters more is what you can't see - the quality of the lumber, brick, drywall, plumbing and plumbing fixtures, wiring and wiring fixtures, and hundreds of other materials and components that go into building a home.

        - Is the foundation slab engineered?  What type of slab is it?  Is it designed especially for the soil on your site?

        - Is the home built to comply with the Texas Energy Code?

        - Are brand name faucets throughout the home or are they "builder's grade" fixtures?

        - Are cast iron bathtubs for tub/shower combinations used, or is it fiberglass or some cheaper material?

        - Is tile for showers, around tubs, and kitchen cabinets put on with wire mesh and cement, or is the tile just glued to the wall?

        - Check the SEER rating of the air conditioning units - lower SEER ratings imply higher energy consumption

        - Are there custom wood cabinets installed or cheap modular units made of particle board?

        - Will the builder furnish a copy of the MECcheck Report showing the home passes the Texas Energy Code Requirements?

        - The framing envelop of the house should be properly sealed and inspected

        - Does the builder provide copies of the inspection reports for each phase of construction to become a permanent record of the home buyer's file?

        - Does the builder have any problem with allowing your own hired inspector to verify correct materials and installation (watch what happens when you ask this!)

An Educated Consumer

For some home builders, an educated customer is their worst nightmare.  Great builders consider them their best asset.  It is important for home buyers to understand what to look for in their new home, no matter who builds it.  The decision you make as to who will build your new home is one of the biggest and most important decisions you'll ever make.  Invest the time to do you your homework.  Ask questions, and give yourself the peace of mind that comes with knowing that you've put your trust in the right home builder.