Beautiful homes wouldn't exist without great builders to bring them to life. But with so many builders and contractors out there, how do you know who to choose to build your house plan? The process of finding the right builder isn't difficult if you do your homework and research before you make your decision.
The best way to find a builder is through a referral or word of mouth. If you know someone who had a good experience with a builder building their home, that's a great start. If that builder is unavailable, you can ask them for builders they would recommend. You can also check with local real estate agents to see if they know of any good builders in your area. If you can't get a referral, another good option is to do an online search for local builders. Builders with good reputations have customer reviews and often have Instagram accounts where you can see their work.
Some other options to narrow down your builder selection include:
Our builder directory. These professionals have years of experience in states all across the country, but still be sure to check references and do an online search for reviews.
Houzz. You can find builders in your area and they often have plenty of photography of prior projects.
National Association of Home Builders. Your local chapter of NAHB will have a list of nearby builders on file. Again, do your homework and research.
Once you've selected a few builders to consider, it's always a good idea to call your local or state Better Business Bureau to ensure they don’t have any complaints or cases against them. Then start conducting your interviews!
Consider More than Pricing
Don't let the cheapest estimate be your final decision. While you'll want to stay on budget, make sure to ask lots of questions and thoroughly research your final candidates.
1: What does your price include? Ask for a detailed breakdown of the work agreement.
2: Is the price an estimate or binding price? Ask if there will be any extra fees that should be budgeted for.
3: Can I see a comparable home that you built and what did it end up costing? Even a drive-by is helpful if you can't go inside.
4: Can you supply references for a home that you built recently? A good builder will be able to provide at least one client who you can speak to about their work.
5: Who are your suppliers and subcontractors? It's important to know who will be assisting your builder to build your home.
6: Are you licensed and insured to build in my county? Make sure an actual license is provided for your review.
7: Are you familiar with the local building codes and ordinances? Every area has different regulations, so you need a local professional who knows the specific building requirements for your location.
The key is to find a builder who is transparent and straightforward about budgeting and pricing and who can answer all of your questions. By being thorough at the beginning, you can avoid unexpected costs and keep your budget on track.
Protect Yourself and Your Investment
A house is generally the single largest investment in a person’s lifetime, so it's important to ensure your builder has liability insurance to cover any possible loss or injury that might occur on your property. You'll also need a comprehensive warranty to ensure the quality of the builder's work in case there are any issues after you move in. Don't rely on legal remedies for possible issues—protect yourself in writing.
Signing the Contractor Contract
Once you choose the builder to build your new home, you'll need to thoroughly review and sign a contractor agreement that details obligations and deadlines of the work to be performed. It's an added expense, but it's a good idea to have your attorney review the contract.
As you wrap up this final stage, remember these tips:
Don’t feel rushed into signing an agreement or giving a down payment to a builder. Be aware of any penalties if you change your mind.
Ask your builder about the process for addendums or possible changes to the contract. The majority of legal disputes arise when expectations or understandings aren’t understood from the beginning.
You may want your construction loan officer to review your contractor's agreement as well.
By doing your research, getting plenty of estimates, and conducting thorough interviews, you can find the right builder to build your new home!