First, you select your builder based on what you want to build. If you want a really cheap home, find a really cheap builder. If you want an energy efficient home, find a builder that builds energy efficient homes. If you desire a home with universal design features then find a builder with experience in universal design. If you want a drop dead gorgeous, cutting edge, high quality home, then find a builder who specializes in high-end homes and has a resume of that type of home. Basically, find the builder that can help you meet the criteria you are looking for in a home.
Second, find a builder with experience. I would not consider using a builder with less than 20 years of experience and less than 100 homes built. You just can’t beat experience and longevity in this business. I have built homes for 36 years and constructed 275 homes. I would also want to be sure a builder is financially solid and has long-term banking and vendor relationships.
Third, review the builder’s website. A website will help you understand the builder, their focus, the areas they specialize in, so forth.
Fourth, ask for and call references. Ask questions. For example, did you enjoy working with the builder? Are you happy with your home? Would you recommend the builder? What did you like about the builder? Did they build the home on time? Did they build your home on budget? Was the builder easy to work with? Was the selections process easy? Did you have any emergencies during the building process? What would you change? When you moved in was the home completed or was there a lot of work still left to do? How is the builder’s follow up after you have moved in?
Fifth, view the builder’s work. Visit a home under construction as well as completed homes. Have the builder point out his/her construction methods, techniques, and finishes, as well as the “little things” done differently from other builders.
Sixth, ask the builder how they manage their business and the building process. By this I mean the following:
Schedule of Construction – you should require one from your builder. It demonstrates that your builder knows how to manage the process, and it also allows you to understand the process. Further, when a home is built on schedule it should give you confidence that your home is proceeding as planned. Please note that changes to the schedule are acceptable as long as you understand why. That said, the builder should be able to provide you with a general schedule with a completion date.
On-Site Meetings – during the construction process you should have the opportunity to walk through the home at various stages to (1) provide direction on what you want, and (2) to understand that the home is being built according to your contract. Meetings between the builder and owner (or owner’s agent) should be at a minimum monthly, preferably 2-3 times a month.
Organization – ask the builder how he and his staff organize their work. What systems and processes do they use to coordinate their jobs and stay organized.
On-Line Project Management – ask your builder if an on-line project management platform is used. These days, clients are busy and often out of town, having a 24/7 on-line platform to review the progress and schedule of their home, as well as photos and videos showing the construction, selections, and documents is invaluable.
Seven, discuss with the builder how they manage the selections process. This can be the area that impacts you the most because it involves your time and decision making. You want this to be handled correctly and with ease. Your builder should give you an online “Decision Checklist”, tied to the construction schedule, that lists what decisions have to be made and the date by which they must be made. My advice, make your selections early.
Eight, I believe that you should use a builder that is a member of your local homebuilders association. This by itself doesn’t guarantee you have found the right builder, but what it does demonstrate is that you have found a builder that is concerned about (1) supporting the industry that supports him or her, and (2) that hopefully the builder takes advantage of all the wonderful educational opportunities offered by their HBA. A great deal of what I have learned can be traced back to the services (education and networking) offered by our local HBA. One more note for what it is worth, HBA’s do a great job in supporting the local community through charitable efforts. Give and you shall receive!
Nine, ask the builder how they will manage your money. What are deposit requirements? How and when are draws and advances made? How/when they will bill you for overages? What about change orders? How are allowances tracked and billed? What construction items are fixed and what items are variable (meaning can change), what is included and provided by the builder? Get all of this in writing.
Ten, pertains to insurance and a warranty. Your bank will require that your builder maintains general liability insurance and worker’s compensation insurance. What you need to do is review your builder’s warranty. Please know that the State of Texas requires builders to provide a warranty. As part of their warranty the builder should state that they are willing to come back to your home during the warranty period and address any issues. The builders warranty should be in writing. Talk to past customers to see how well warranty issues were addressed.
After you have thought through the above reasons for selecting a builder there is one more very good reason to hire a builder. Because you like and have confidence in the person and his/her team. You believe in them (again, after going through items 1-10 above). You are going to spend a lot of time with your builder, you need to trust them.
Building a home is a great experience. Know that your home is a reflection of you. Express yourself. Have fun. Ask lots of questions. Visit the site often. Get to know your builder. Refer him/her to a friend. Have fun.