What Everybody Needs To Know About
Building A New Home
THE 7 THINGS MOST BUILDERS NEVER WANT YOU TO HEAR!
1. WHEN YOU HIRE A BUILDER YOU HIRE PEOPLE WHO YOU DO NOT SEE
It is rare for a construction company that builds homes to do the entire
job. A builder may have some crews which are his employees but most of
the work on your home may be in the hands of subcontractors. The quality
of your home when it is finished depends on the sub-contractors your
builder works with and how well he knows their standard of work.
YOU MAY WANT TO ASK:
Do you have sub-contractors you work with on a regular basis?
Can you provide a list of the sub-contractors you work with?
2. WHEN YOU HIRE A BUILDER YOU SHOULD KNOW WHAT MATERIALS WILL BE
USED
Avoid surprises on the quality of your home by knowing ahead of time
what materils will be used in the construction of your home. Your
builder should be willing and able to supply you with a specifications
sheet of all materials that will be used. Each material used will carry
its own warranty, i.e. a roof can have a 15-30 year warranty depending
on the brand. Seeing actual samples is not an unreasonable expectation.
Details as small as door hinges are important to the finished
product...avoid misunderstandings by knowing what to expect beforehand.
YOU MAY WANT TO ASK:
Can you provide a spec. sheet of the materials that will be used in my
home?
Can we look at samples or see them in a model home?
3.YOU CAN HAVE TOTAL CONTROL OF YOUR SELECTIONS
A builder who is willing to work with "allowances" gives you control of
the contents of your home as well as control of the budget. Some
builders may give you a "package deal". You may be able to choose
between 2 or 3 types of cabinets or light fixtures. If you choose the
least expensive fixture the builder can keep the extra profit.
Allowances set a price for the project, such as the kitchen cabinets.
You can use the type the builder supplies, at his quoted price, or
choose what you want. You have control of the budget and materials at
this point. If you choose a fixture that is less than the "allowance"
the difference is credited back to you, not the builder. You may choose
to spend less on the light fixtures so you can apply the difference
toward upgrading the carpet. Put your $$$$'s where you want them. A good
builder will give you allowances based upon what you have told him you
expect in your home.
YOU MAY WANT TO ASK:
Will we work on an allowance system or do you limit
my choices to your choices?
What projects can we work on the allowance system?
4. EXPECT A COMPLETE LIST OF REFERENCES
Those who have been through the complete building process with your
chosen builder can be a source of valuable information. The best list
would be a list.
YOU MAY WANT TO ASK:
Can you supply me a list of references I may call?
Is this list complete or have you left out someone you worked for?
5.SOME BUILDERS ARE FINISHED WHEN YOU SIGN ON THE DOTTED LINE
Your builder should be involved in the entire process, design, planning
and construction. The warranty provided by the builder should cover the
labor involved in the construction of your home. This is separate from
the material warranties. A good builder will still be involved and
accessible after moving day.
YOU MAY WANT TO ASK:
Will you share my vision of my home from ground breaking to completion?
What warranty and follow-up do you provide?
6. FINANCING OPTIONS THAT GIVE YOU CONTROL
A construction-perm loan gives you some control over when your $$$$'s
are paid. It will also reduce the final closing costs and you can lock
in an interest rate. You have to sign for each "draw". This indicates
you agree the work done to this point is satisfactory.
YOU MAY WANT TO ASK:
Will you work with a construction-perm loan?
Do you have an established relationship with a financial institution
which deals in construction-perm loans?
7.THERE WILL BE PROBLEMS...
Your builder should have a warranty that is pro-active. He should tell
you there will be some problems. A house is a very detailed piece of
work, thousands of pieces/dozens of workers. There will be problems.
Your builder should have a plan in place to handle any problems. He
should see you several times during the warranty period to correct the
problems.
YOU MAY WANT TO ASK:
What type of warranty do you provide?
What is the time period of the warranty?
