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How to Take the Hassle Out of Building a New Home...Step 2~Selecting the Right Builder!

By
Real Estate Broker/Owner with Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate

 

 

Selecting the Right BuilderSelecting the right builder for a new home construction process can mean the difference between "being sane" at the end of your home building adventure or feeling like you've embarked on a scary roller coaster ride. In Grand Rapids, Michigan, there are a number of different issues to consider when selecting the builder who is right for you.

There are also several different types of home builders/contractors. In this post, we will explore a few options and discuss the benefits and challenges which may be associated with different options. It is also a good idea to contact your local home builders association. They will often be able to provide a list of builders who subscribe to certain standards and codes of conduct as a term of their membership.

Developers

If you are looking for a new home in a development in Grand Rapids, Michigan, there is a high likelihood that you will be working with a Developer or builder who builds homes (often called spec homes) for sale within a particular community. Often these types of neighborhoods will have a model home which you can tour to preview different options and styles within a particular budget range.

Some of the advantages of working with a Developer include: being able to select samples at the site, being able to easily preview previous construction and sometimes the developer will provide construction financing or will carry all the costs of financing so all you have to qualify for is the end loan. This can help you with out of pocket expenses during the construction process.

The downside may be: limited choice options; cookie cutter houses (where your home is pretty much like everyone else) and stricter perameters regarding what is allowed per the recorded deeds and restrictions for the subdivision. It is important to ask for a list of contacts from the builder so you can verify the experience of homeowners who have been past customers. Questions you may want to ask can include, but should not necessarily be limited to the following:

  • 1. Are you satisfied with the quality of the construction, labor and finishing of your home?
  • 2. Was the developer/builder responsive to correct issues which needed to be addressed?
  • 3. Was your home completed on schedule? If not, who was responsible for any additional costs associated with the delay?
  • 4. How would you rate your overall experience?

Small/Independent Builder

You are very likely to be introduced to an Independent builder through a referral or by dropping by an Open House for a home they have built. Many Independent Builders will build several homes a year. They may sometimes live in a spec home for a few years before re-selling it. Some Independent Builders build homes as a full-time job and for others it is supplemental income. Some Independent Builders are skilled craftsmen who take great pride in their trade and in the quality of their craftsmanship.

One of the challenges that you may encounter is related to the fact that an Independent Builder may not have the same type of leverage with sub-contractors that a developer does. As a result, a project may be more susceptible to delays. It is important to discuss this issue with your builder and understand how this will be addressed particularly if you are carrying the financing costs. It is also important to preview more than one home that the builder has built and to ask the questions listed above of their previous clients.

The advantages of working with an Independent builder include being able to more easily customize your home as you will not be constrained by a template and having a more intimate association with the home building process. On the other hand, some disadvantages may include the following: a builder who builds just a few homes a year may not have access to resources such as financing or discounts that a builder who does more volume would.

At Audu Real Estate, we have developed a detailed questionnaire that can assist you in evaluating the home building process and selecting the builder who is best for you. We provide our clients with a FREE Consultation to assess your needs and are also available to accompany you in interviewing home builders and previewing spec  and custom homes. Your New Home is a Valuable Investment. If you'd like to explore the excellent options available in the Grand Rapids, Michigan area, please give us a call at 616-791-0511 or e-mail us at info@auduhomes.com.

This blog is a part of a Series.  Read Part 1: How to Take the Hassle Out of Building a New Home~Select the Right Lot! 

Copyright 2007 Audu Real Estate  All Rights Reserved

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Comments(10)

Nicole Kraus
Signature Realty Associates - Dover, FL
Great Blog!!  Thanks for the FYI!  I have even copied it for future reference. 
Sep 29, 2007 12:08 PM
Donna Paul
Keller Williams Realty Gold Coast - Dix Hills, NY
Long Island Home Specialist,All About Real Estate
I made sure that this one is BOOKMARK ..Thanks for the source of information.
Sep 29, 2007 12:15 PM
Brett Noel
Keller Williams - Paso Robles, CA
I want to build a new home and my biggest fear is  finding a builder , Thx for the blog
Sep 29, 2007 12:17 PM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!
Hi Nicole, Thanks for stopping by to read and comment.  As this information is Copyrighted, the appropriate action to take is to BOOKMARK it for future reference.  If you'd like to use it in another way, please e-mail me. 
Sep 29, 2007 12:39 PM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Thanks for the comment Donna & for bookmarking this post! :)

Hi Brett, Thanks for stopping by.  This post is the result of my own personal experience and working with clients.  I'm glad you found it helpful.

Sep 29, 2007 12:41 PM
Daniel Sundberg
Crystal Springs Real Estate - Kentwood, MI
Coming from a building background, thats a pretty good idea of how it works.  As for the discounts with a large scale builder, I don't believe the consumer ever gets to see those, especially in the current market.
Sep 29, 2007 01:04 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Wow, Lola. Read, bookmarked, and read again. Outstanding advice, especially for someone new to new construction and all the issues to contend with. I'd like to share this with some buyers who are considering new homes - I have limited experience in this arena...

Jeff

Sep 29, 2007 02:25 PM
Candy Henthorne
Results Realty - Spring, TX
Spring Texas Real Estate
Lola, Great Post and wonderful advise for buyers building their first home. 
Sep 29, 2007 03:24 PM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Hi Daniel, Thanks for stopping by to read and comment.  Some pretty amazing things are happening with discounts these days as builders are urgently trying to get rid of inventory.

Hi Jeff, Thanks for your comments.  Please feel free to forward the posts. 

Hi Candy, Thanks for your comment.

Sep 29, 2007 04:08 PM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Lola, As good content seems to be getting scarce, I know I'll find something of value on your blog.

This is a very useful piece of the homebuilding puzzle. I look forward to the rest of the series. I hope you are going to address the dreaded "change order."

Bill Roberts

Oct 01, 2007 02:44 AM