How to Hire a Custom Home Builder-- the Top Five Things to Look for
Copyright (c) 2010 Gerry Stringer
Deciding to build a custom home - a dream home - is usually a once-in-a-lifetime event, the culmination of a life's work and an expression of a personal style honed through years of experience. It's not like buying or re-doing an existing home, as it is a blank canvas meant for a masterpiece and the owner will be responsible for every brush stroke. A custom home is, without question, a signature piece, marked indelibly with the home dreamer's distinctive taste.
Trouble is, even people who have never built a brand-new home know all too well that the process can be fraught with frustrations. It is nearly axiomatic that on a construction project of this sort prospective owners should add 20% to the bid budget and half again as much time to the proposed schedule. Indeed, the troubles inherent in home building, the cost overruns, the time crunch, and the frustrations have been the subject of several star-studded movies from Hollywood over the years, including: Mr. Blandings Builds His Dream House in 1948, with Cary Grant, The Money Pit in 1986, with Tom Hanks, and Are We Done Yet?, in 2007, with Ice Cube. Interestingly enough, the subplot is each of these movies involves marital problems, obviously another clich axiom involved in such a project.
But it isn't necessary, and an owner building a custom home can fulfill the dream without being in the home construction business. A successful project begins with being prepared. Here's a guide to the Top Five Things to Look For in a Custom Home Builder, drawn from a variety of home-builder trade associations, custom home builders from around the country and Denver custom home builders, and from home-owner building nightmares and successful dreams alike:
1. Has this custom home builder built comparable homes in a similar quality level, type of neighborhood, size scale and price range proposed? Nobody wants to be the test case; ask to tour properties the builder has created and speak with former clients for opinions and recommendations.
2. Does the custom home builder offer general liability insurance and sufficient worker's compensation in addition to being insured and bonded to the appropriate level. Without these coverages the home owner could be liable for any damages incurred on the premises during construction. An insurance agent dealing with these lines of coverage could help in determining appropriate levels of coverage.
3. Does the firm have the financial wherewithal to deal with a project of the proposed cost. Ask if the builder creates a separate bank payment account for each project, and if the client has regular access to the accounting of this account. Pooled assets covering multiple projects are a sign of potential problems
4. Is the entire project, step-by-step, item-by-item, planned, priced and scheduled completely in advance. The client needs to make literally thousands of choices and decisions involving everything from the wood floorings, cabinets, roofing, stoves, and even stone and lumber, making this a laborious process. While changes do often occur, pre-planning everything minimizes the "change order" surprises.
5. How does the custom home builder charge for its services. Many builders employ a "cost-plus" fee structure, but most reputable builders believe this is a built-in temptation to increase costs and lengthen the schedule. The preferred fee structure is called "fee for service," a pre-specified fee, based on time involved, that won't change no matter what the contingencies. Fee for service benefits the home owner as it is an incentive for the builder, and all of the subcontractors, to bring the project in on-time and on-budget.
Of course, there are many more questions to ask of a custom home builder, but if the answers to any of these five inquiries is inadequate there is little need to go any further with that builder. A full-service custom home builder should also be able to introduce a home owner to an appropriate architect, consult on site selection, and assist in the selection of both construction financing and a long-term mortgage at the end of the project.
About the Author
Gerry Stringer of Denver, Colorado is a real estate expert and knows a variety of custom home builders in Colorado. He has created a guide to choosing the right one. If you are looking for a custom home builder that will meet all your needs, choose http://www.chasecustomhomes.com
Tell others about
this page:
Comments? Questions? Email Here