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New Construction - Tips for Choosing the Right Builder for Your Project

By
Services for Real Estate Pros

BlueprintYou've dreamed about building your home and designing everything just the way you want it. Before your dream becomes a reality, you need to select the right builder for the job.

Here are a few tips to make your decision making process a little bit easier:

Get Pre-Approved for You Loan so you know exactly what kind of budget you will have. Also, make sure that you will not have a problem getting your mortgage once construction is complete.

Work with a Realtor(R) that is experienced with new home construction. A Realtor(R) can help identify reputable local builders, building lots that meet your criteria, and can help you negotiate a New Home Construction Buy/Sell Contract.

Select at least three builders to interview - you can get recommendations from your lender, Realtor(R) and even from local suppliers. 

New ConstructionQuestions to ask during your interview with the builder

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    • How long have you been in business?
    • What type of Warranty do you offer? For how long?
    • How much of the work is completed by your own employees versus subcontractors?
    • Who supervises the work at the job site?
    • Do you have any liens against your finished projects?
    • What sets you apart from other builders?
    • What is your bid process and how long will it take?
    • How quickly can you start the project and how long will it take?

New Construction SuccessMost importantly, get at least three references that you can contact from the builder on completed projects. Contact the references, here's some questions to ask:

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    • How was the builder to work with?
    • Did they come in at, or under budget (excluding change orders)?
    • How did they keep the job site - was it relatively clean?
    • Are they happy with the final project?
    • If possible - go see the projects and look at them carefully - are they level and are the details completed -trim, etc.?
    • How was communication with the builder? Was he accessible?

Based on your interview, research and reference check, you will need to select a builder that you feel comfortable with and that you will trust to complete your project. 

If your project is large, such as a new home, you will likely need to choose a builder before your project is priced. Pricing a home can take a few weeks for the builder and will require a lot of your input - what type of finishes do you want, flooring type, heating system, fixtures, etc.

Communicate your budget and expectations with your builder up front. An experienced builder can help you get the most for your money if they have a clear understanding about what you want, and how much you can spend.

 

 

Comments(4)

Rene Fabre
ARFCO Media - Renton, WA
Practicing Philosophical Eclectic of the Arts

Kevin and Monica... Thank you so much for a great post. Much appreciated.Y'all have been busy this week, I see you everywhere!

Rene'

Feb 28, 2009 06:20 AM
Terry Chenier
Homelife Glenayre Realty - Mission, BC

I built 3 new homes from the ground up; it can be daunting if you don't do your homework.

Mar 02, 2009 12:48 AM
Catherine C Capasso
Catherine Cornelia Real Estate - Eastchester, NY
Cottage or Castle, What's Your Dream!

I am working with a client that is buying a property that down the road he wants to add another building to serve as a garage and home office, separate from the main house. This is a great post for tips to help him get the right contractor.

Thanks,

Catherine in NY

Mar 02, 2009 08:21 AM
Monica Bourgeau
Portland, OR
Business Coaching

Hi Rene - thank you, we have been busy and so have you :)

Hi Terry - wow, 3 of them, that's pretty ambitious! Homework is definitely critical prior to starting.

Hi Catherine - glad to hear that this may help your client.

Mar 03, 2009 09:16 AM