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How To Choose The Right Builder For Your Custom Home

Based on years of our industry knownledge

One Of Your Biggest Decisions

How to Choose a Builder for Your Custom Home

Choosing a builder is one of the biggest decisions you'll make when building a custom home.

The plans might be finished. You've probably spent months thinking about the layout, finishes, kitchen, bathrooms, and all the little details you want in the house. But none of that matters much if the builder you hire isn't the right fit. There are plenty of good builders out there, but they're not all the same. Some specialize in smaller homes, some take on large projects, and some work primarily as project managers while subcontracting almost everything. Fun fact: Even when you're referred to a builder by someone you trust, it's worth looking at their previous projects, experience and reputation before making a decision. More than 60% of homeowners reportedly do some online research before contacting a contractor, even when they've received a referral.So how do you figure out who you should actually hire?

Start With Their Previous Work

The first thing we'd recommend is looking at homes the builder has actually completed.Not just the best photos on their website. Look for projects that are similar to what you're planning to build. If you're building a large home on a difficult lot, for example, a builder who has mostly worked on straightforward homes may not have the experience you need. Likewise, if you're planning something relatively simple, you may not need a company that primarily takes on very large projects.

Ask to see some of their recent work and, if possible, visit a finished home. You can also ask questions about the projects you're looking at. How long did they take? Were there any major issues? What did the builder handle themselves? Which parts were subcontracted?

A builder who has been doing this for a long time should be able to talk about their projects without hesitation.

Talk to Previous Clients

This is one of the best ways to find out what a builder is actually like to work with.Ask the builder if you can speak with a couple of homeowners they've worked with recently.

You don't need to ask anything complicated. Just ask what the experience was like.

Did the builder communicate well?

Were there surprises with the budget?

How did they handle problems?

Did the project stay reasonably close to the expected schedule?

Would they hire the builder again?

The answers can tell you a lot. Building a home is a long process. Even a very well-run project is going to have the occasional problem. What matters is how the builder deals with those problems when they come up.

Look at Their Reviews, But Read Them

Online reviews are worth checking, but don't just look at the star rating. Read through the reviews themselves.

Look for comments about communication, workmanship, keeping people informed, handling changes, and dealing with problems. Also pay attention to how recent the reviews are. A company might have a lot of reviews from several years ago but very little recent feedback. That's worth asking about.

You can also search for the company outside of their own website. You'll often get a better idea of their reputation by looking at several different sources rather than relying entirely on testimonials they've chosen to put on their site.

Ask Who Will Actually Be Managing the Build

This is an important question that sometimes gets overlooked. When you meet with the owner or salesperson, find out who you'll actually be dealing with once construction starts.

Will it be the owner?

A project manager?

A site supervisor?

Someone else?

You should know who is responsible for keeping the project moving and who you can go to when you have a question. It's also worth asking how often someone from the company will be on site. A custom home has a lot of moving parts. There are framers, electricians, plumbers, drywall crews, painters, flooring installers, cabinet installers and plenty of others who need to work in the right order.

Someone needs to be keeping an eye on all of it.

Don't Automatically Go With the Cheapest Quote

It's tempting to put several quotes side by side and choose the lowest one. With custom homes, that can be a mistake. Two builders can give you very different prices for what appears to be the same house. That doesn't necessarily mean one builder is trying to charge more. There may be differences in what's included.

One quote might include better windows, higher-end finishes, more realistic allowances, or site work that another builder has left out. Go through the quotes carefully and ask questions about anything you don't understand. A $50,000 difference on paper doesn't mean much until you know exactly where that difference comes from.

Pay Attention to Allowances

You'll probably come across the word "allowance" when going through a custom home proposal.An allowance is essentially an amount set aside for something that hasn't been selected yet. For example, your contract might include a $15,000 allowance for flooring. If you eventually choose $20,000 worth of flooring, there's a $5,000 difference. The same thing can happen with cabinets, lighting, plumbing fixtures, appliances and other finishes. Make sure you understand what the allowances are and whether they're realistic for the type of home you're building. A quote can look inexpensive simply because the allowances are low.

Ask What Happens When Something Changes

It's very common for things to change during a custom home build. Maybe you decide you want different flooring. Maybe you add some lighting. Maybe you change a wall after seeing the space in person. That's part of building a custom home.

What's important is having a clear process for dealing with those changes. Ask your builder how change orders work and how you'll be told about additional costs before the work is done. You don't want to get halfway through construction and find out that a bunch of small changes have added tens of thousands of dollars to the project without you realizing it.

Get a Clear Idea of What's Included

Before signing a contract, go through the scope of work carefully. Ask what is included and what isn't. Depending on the project, things such as excavation, landscaping, appliances, window coverings, utility connections, driveway work or certain exterior finishes may be handled separately.

There isn't necessarily anything wrong with something being excluded. The problem is not knowing about it until you're already well into construction. The more detail you have at the beginning, the easier it is to plan your budget.

Ask About the Timeline

Nobody can guarantee that a construction project will go exactly according to plan.

There are too many things outside of a builder's control. Permits can take longer than expected. Materials can be delayed. Weather can cause problems. Sometimes an issue isn't discovered until something is opened up. That said, your builder should still be able to give you a reasonable idea of how long the project should take.

Ask what the major stages of construction look like and what could potentially cause delays. More importantly, ask how they communicate when something does go wrong. You'd much rather have a builder tell you early that something is going to take an extra two weeks than find out about it at the last minute.

Visit a Job Site

If you can, visit one of the builder's active projects. This can tell you a lot. Look around. Is the site organized? Are materials being looked after? Does the project appear to be managed properly?

You don't need to know everything about construction to notice whether a site looks reasonably organized. You can also ask the builder questions while you're there. A good builder should be comfortable explaining what you're looking at and what's happening at that stage of the project.

Make Sure They're Properly Insured and Qualified

Before hiring anyone, make sure you understand what credentials, insurance and warranty coverage apply to your project. Ask the builder for the documentation you need rather than assuming everything is in place.

If you're building in British Columbia, make sure you understand the requirements around new-home construction and warranty coverage as well. This isn't the most exciting part of building a house, but it's something you want sorted out before construction begins.

Meet More Than One Builder

Unless you've worked with a builder before and already know who you want to use, it's worth talking to a few companies. You don't need to meet with ten. Three or four good conversations should give you a much better idea of what's out there.

You'll start to notice differences in how builders approach the project, how they communicate, what's included in their proposals and how they answer your questions. You'll also get a better understanding of what your project is realistically going to cost.

Pay Attention to How They Communicate

This might be one of the most important things to consider. If communication is difficult before you've even signed a contract, think about what it's going to be like six months into construction. You should feel comfortable asking questions.

The builder doesn't need to tell you what you want to hear every time. In fact, sometimes the right answer will be something you don't want to hear. But they should be willing to explain why. You want someone who will pick up the phone, return your calls, explain what's happening and tell you when something needs your attention.

Don't Be Afraid to Ask Questions

Building a home is a huge investment. You shouldn't feel like you're bothering the builder by asking questions.

If you don't understand something in the quote, ask.

If you don't understand why something costs what it does, ask.

If you're unsure about the timeline, ask.

If you want to know who will be on site, ask.

You don't need to be an expert in construction. That's part of what you're hiring the builder for.

The Right Builder Isn't Always the One With the Lowest Price

At the end of the day, you're not just hiring someone to build a house. You're hiring a company to manage a complicated project that could take a year or more and involve a lot of money, decisions and moving pieces. Look at their experience. Look at their work. Talk to previous clients. Understand the quote. Ask about the contract. Find out how they communicate and how they deal with problems.

Then choose the builder you feel you can actually work with. A custom home should be an exciting project. There will probably be stressful moments along the way, but having the right builder in your corner can make a huge difference in how the entire experience goes.

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