And because everyone knows that the builder can make or break a project.
But how can that be? Wouldn'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.
How Much Do You Know?
If you read the other articles in this series, you might remember my comments about "test-driving" a house. You can't, of course - so without some knowledge you're completely dependent upon others. Through this site you're learning about how to make wiser choices of house plan designs. But if you don't take a few minutes to learn about builders, all that knowledge might just go to waste.
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 most builders I know do everything in their power to provide a quality service and product to their clients.
Those are the guys you're looking for. There are also guys to avoid.
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| Horror Stories
Remember that neighbor of yours - the one whose 2-month kitchen remodeling took a year? And then the granite countertops cracked and had to be replaced? What about your cousin who was quoted $300,000 to build his new house - and it ended up costing him $400,000?
Everyone's heard horror stories about houses and it's one of the biggest fears of new homeowners. 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
Differences in expectations are the root of all evil in the design and construction business. I had an interesting conversation with a young couple at a party a year or two 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," they answered. As it turns out, they hadn't checked him out at all - the new model home and the sign in the yard was enough to convince them to hand over $500,000. I'll bet they spent more time researching their plasma TV purchase.
That builder has fled town and is now setting up shop outside of Nashville, Tennessee - watch out Vols!
Difference In Expectations Lesson Number One: 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!
Difference In Expectations Lesson Number Two: don't sign a contract without a full set of construction drawings and complete specs. This is the cause of most problems. 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.
Difference In Expectations Lesson Number Three: 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 businessmen are drawn to the lowest bidder like a moth to a flame.
How To Find The Best Builder
Build a list of potential builders from:
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
Residential Architects and home designers in your area
The Better Business Bureau
Angie's List (www.angieslist.com)
Your local Home Builder's Association (find them at http://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. 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. Many of my clients asked for references - but very few actually called. 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 a home inspector or Architect with you if you don't know what to look for.
It's a lot of work, 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.
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