Building a home is a significant milestone, often planned and dreamed about for years. While it’s an exciting time to see your dream home come to life, the process can be long and stressful. Choosing the wrong builder, however, can diminish that excitement, causing headaches and regret. Since this is one of the biggest projects you’ll ever undertake, it’s essential to research and find the right builder for the job.
Getting Bids and Estimates
Building a home is a huge undertaking, so even if a builder comes highly recommended, it’s important to get bids from at least three firms. Read each bid carefully and pay attention to the fine print. If one bid is significantly lower, it may not include important aspects of the project, or it could indicate a company that isn’t fully reputable.
Consider having a lawyer review the bids, especially if this is your first time building a home. A lawyer can identify potential problems before they arise.
Also, ensure you understand the difference between an estimate and an actual bid. An estimate is often based on guesswork, though experienced builders can provide fairly accurate ones. However, keep in mind that final costs could differ from the estimate.
Qualifications
Before choosing a builder based on their bid or estimate, verify the company’s qualifications. While it may feel awkward, always ask for proof of certifications and licenses. Builders invest in these credentials to prove their professionalism and reliability.
Start by checking the builder’s state licenses. Ask about their liability insurance and workers’ compensation coverage as well. Hiring unlicensed or uninsured builders could make you liable for accidents on the job site, potentially derailing your project. You can also check with the local Home Builders Association to see if the company is a member.
It’s also wise to verify the builder’s business address and phone number. Visit the company’s office, meet the staff, and examine the premises. A reputable builder will have a brick-and-mortar office, not just a cell phone for contact.
Don’t hesitate to request references, either. Get contact details from past clients, and take the time to follow up. Ask about their overall experience, any problems they encountered, and how the builder handled them. Finish by inquiring about their satisfaction with the completed home.
Before you make your final choice, check with the Better Business Bureau for any complaints. A few complaints are normal, especially for long-established companies, but a builder with multiple complaints per two years of operation should raise red flags. Additionally, check with your city’s building department and the county clerk to see if any legal issues have been filed against the builder.
Making a Final Choice
Once you’ve thoroughly researched a builder and accepted a bid, be sure to get a formal contract. Before signing, consult a lawyer to review the contract carefully.
Make sure you’re satisfied with the terms before you sign. You can renegotiate terms before the official agreement, but once you sign, the contract is binding.
Cost and project duration are key concerns. Building a home is a major undertaking, and unexpected problems can arise, resulting in extra costs or delays. Be sure to ask your builder if they typically go over budget, as this can be another important factor to investigate through references.
Building your dream home can be exciting, but it can also present challenges. By carefully choosing a qualified, trustworthy builder, you can avoid unnecessary stress, and the process will go more smoothly. It’s worth the effort!
