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    Choosing a Custom Homebuilder
    Things To Consider

Does the builder have references – Talk to past customers and/or Realtors about their experience in working with the builder through the construction and warranty service.

Does the builder provide detailed specifications – Make sure the builder will give you detailed written specifications to avoid surprises during construction.

Does the builder include the cost of drawing plans in the price of the home – Plan drawing and engineering can add thousands of dollars to the cost of the project.

Can the builder give you an estimated price before you spend money on plans – A builder should be able to give you guidance on a floor plan, size and style of the home before you invest in the expense of drawing plans.

Does the builder work on a fixed price or cost plus basis – Constructing a home on a cost plus basis means the customer will pay for the builder’s errors in bidding, mismanagement or cost over runs.

Is the cost of construction financing included in the price – If you are obtaining a loan for the construction you need to budget for the cost of financing because this can add thousands of dollars to the cost of the home.

Are the dollar allowances sufficient – Talk with the material suppliers before you commit to the building contract to make sure the allowances provide the finishes you are expecting.

How does the builder handle the cost of unforeseen things like bad soils or underground water encountered in the construction – If you are taking the risk for the additional unforeseen expenses you need to know the maximum cost.

How much does the builder charge for upgrades or changes – Upgrades and changes happen in every home, therefore you need to negotiate how much profit the builder charges on changes before committing to a building contract.

Do you like the builder’s craftsmen and suppliers – Ask to meet some of the craftsmen and suppliers.  These are the people that will be doing the actual building of your new home so you need to know if you feel comfortable with them.

What landscaping or retaining walls are included in the price – Retaining walls may be required to manage the drainage properly and they can add thousands of dollars to the cost of a home. 

What is the builder’s warranty – Warranties should cover cosmetic items like paint, tile and carpet; mechanical systems like heating, plumbing and electric; and structural components of the home.  Some items have the warranty provided by the manufacturer like windows, roofing and appliances, therefore those items may not be covered by the builder.

How comfortable do you feel with the builder – Keep in mind you are going to have about a 2 year relationship through construction and the initial warranty period, therefore you should also consider your basic feelings about how well you can communicate and work with the builder.

Posted by Brad Ausmus
      © 2010 Bradley Ausmus.  All rights reserved.