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Five Common Disagreements Owners Have With Builders

By
Home Builder with Owners' Ace

The relationship between a builder and owner often starts out like dating someone for the first time.  There's the flirtatious little dance up front where everyone is star struck and no one can do any wrong.  Yet as the dating continues and gets more serious, there are often disagreements.  Here are some of the most common ones AND how I've learned to avoid them and you can, too.

  1. Expectations
    • Problem:  The homeowner thinks that this is a shoddy builder.  I never would've hired him if I had known this.  The builder thinks that these homeowners have completely unrealistic expectations.  I can never please them.
    • Solution:  Before signing a contract, both the builder and homeowner need to clearly outline their expectations.  Often this can be achieved with detailed specifications and plans.  Although it will take some additional time and effort up front, it will solve many misunderstandings down the road.
  2. Communication
    • Problem:  The homeowner is speaking to everyone, but the builder on matters related to the home or its construction.
    • Solution:  Open and honest communication with the builder is vital, not just with anyone who will listen.  Communication needs to come through the builder, not subcontractors, suppliers and other parties.
  3. Second Guessing
    • Problem:  The homeowner is continually second-guessing the builder and the decisions he is making. 
    • Solution:  Take time at the start of the project to interview and gain a high level of trust with the builder and his abilities.  Also, speak to previous homeowners about their homebuilding experience with this builder.
  4. Punch List
    • Problem:  Homeowner thinks that the builder never finished the punch-out list.
    • Solution:  Prior to closing, the homeowner and builder conduct a walk-through of the entire home together.  During this walk, any items that still need attention are identified and placed on a list - the punch list.  The items are documented in writing and signed by both the builder and homeowner.  Any new items that are identified are to be addressed through the builder's warranty process, not the punch list.
  5. Change Orders
    • Problem:  The homeowner doesn't think that adding two more windows to the home would be an extra cost or cost that much.
    • Solution:  Changes need to be clearly communicated and put in writing to protect both parties.  Prior to starting the project, both parties need to agree how additional costs for changes will be estimated.

Like many relationships, it's often much easier to save the heartache by discussing these items before they occur so they can be resolved in advance.

Jon Solomon

www.JAVICHOMES.com

http://www.facebook.com/javichomes

Comments (4)

Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I have hit suggest. I have experienced some of these issues with my buyers.

Apr 18, 2011 11:04 PM
Clint Mckie
Desert Sun Home, commercial Inspections - Carlsbad, NM
Desert Sun Home, Comm. Inspection 1-575-706-5586

Hi Jon. Very solid advice for everyone not just builders and the client's but everyone involved within the building and real estate business.

I will forward this info on.

Clint McKie

Apr 18, 2011 11:44 PM
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Seems like the biggest problem is communitcation, which is the bases of all business. I know a contractor whose contract is 30 pages long, spelling such items as type of tile and cost. Change orders can go both way up or down in price.

Sometimes it is not the contractor but the homeowner who thinks he can get something for nothing, I walk away from these folks. Quality is #1.

Apr 18, 2011 11:45 PM
Jon Solomon
Owners' Ace - Tampa, FL
Owners' Ace | The Homebuilder Guru

Gita/Clint/David - Great feedback.  Couldn't agree more with David's comment.  These are not exclusively owner or builder issues.  They cut both ways but I think that most reputable builders have the same goal as the owner, which is to build a quality home on time and on budget.  Thanks.

Apr 19, 2011 03:48 AM