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How to shop a builder

We've been in the residential construction business long enough to know that not all "builders" are really builders. Everyone who claims to be a builder isn't standing on the same solid foundation of knowledge and experience as a real builder. In fact, just within our years at Eagle Rock, we've seen many marginal (and I'm being generous with that term) "builders" come and go (and unfortunately some are still here.)

We know that building a home is not something that people undertake very often so we've developed a comprehensive list of informative items/questions to help you weed out what we call the imposters. We are confident in all of these areas and know that our clients have done their homework in choosing us as their builder. No other builder in Eagle Rock exceeds our quality, building knowledge, experience and building time-frame. We hope that the following is a useful tool for selecting your homebuilder:

Suggested questions/information to obtain when selecting your homebuilder:
  1. Before committing to a specific builder, survey current residents of Eagle Rock who have firsthand knowledge. There are a lot of involved residents that you could meet by attending a monthly town hall meeting. While here golfing, skiing, down by the lake, or dining, just ask around. Word travels fast throughout the resort and Eagle Rock residents can be a great resource because they aren’t salespeople. Most honestly love to talk about their building experience and those of their friends that they have made here.
  2. How long have they been in business? How many homes have they built in Eagle Rock?
  3. Ask for a list of references from current and past clients of whom you may contact. When speaking with the references, ask whether the builder was knowledgeable, their quality of work, if the agreed upon time-line was followed, pricing on extras and allowances, and most importantly if they would use them again. What are their professional qualifications and credentials?
  4. Do they belong to any professional organizations? (Contact these organizations for confirmation)
  5. Check with the local Better Business Bureau to be alerted of any complaints.
  6. Does the builder have sufficient workers compensation and general liability insurance? Is builder certified by OSHA for safety? If not, you may be liable for any construction related accidents on your premises. Ask for copies for verification.
  7. Will the builder be using sub-contractors and if so, are the sub-contractors properly insured? Again, ask to see verification.
  8. Does the builder have direct knowledge of local building codes? How did they attain that knowledge?
  9. How many projects can the builder be working on simultaneously? You want to hire someone who will be focused on your project and not someone who will only spend short bursts of time on it due to over-commitments.
  10. Does the builder have a Quality Management Program? If so, can you view their quality checklists? Do they walk their homes frequently or are they just allowing their sub-contractors to set the standards for quality? You are paying the builder to set those quality standards and deliver a quality home. Again, this is very important, the builder should be setting those quality standards, not the sub-contractors.
  11. Have you seen the builders work firsthand? Both completed work and in progress. Check for quality of workmanship and materials. Show up unannounced to see the way they do business. How organized (or disorganized) a builder's worksite is very telling. How do they protect the finishes during the completion of your home?
  12. What is their estimated fee? Although the fee is a factor in your decision, it should not be the most important one. Look for value in a proposal. A proposal that seems low may indicate deficient work style and materials. If proposal is too high, ask builder if they are willing to work with you to do some value engineering to make the project more affordable.
  13. Make sure that the proposal includes all aspects of the project from start to finish (turnkey). Beware that some builders will quote an initially low price to be awarded the job and then bill the homeowner at the end with all kinds of "extras" which technically should have been included in the initial proposal in the first place. Homebuilding is very competitive and some builders play this numbers game to gain an advantage. Make sure that everything required to move into your home is included in the proposal so that you don't have $urprises at the end. This is especially important if you have a fixed amount of cash to commit either through bank financing or from your own resources. You don't want to be caught owing thousands of dollars of unexpected "extras" at the end.
  14. This leads to asking how the builder handles costs above their initial proposal during the project. Are there change orders if the owner initiates a change to the original building specifications? How are site conditions handled such as the need for extra fill for example? Ask how they have handled these situations.
  15. How does the builder handle allowances in your proposal? Allowances should be for material only, not labor. This will help to take the gray area out of the contract and make it more black and white. Are you allowed to shop for your own allowance items? Also, don't assume sq. footage and yardage is correct in the proposal. Double check with flooring suppliers.
  16. Find out if the builder has ever been sued. Ever been bankrupt?
  17. How detailed and clear are their building contracts? Ask for a sample contract to review.
  18. Does the builder offer a warranty? How long is it for? Ask for a sample copy.
  19. Will the builder allow a third party building inspector to provide you a report on the home's quality and workmanship? Just as when you purchase an existing home, you order a home inspection. You should really make sure that the finished product is defect free before allowing the builder to walk away from the project.
  20. Overall, are they knowledgeable about the building industry? Did they seem well-versed in all aspects of their business? Do you have a good rapport with them? Do you trust what they are telling you? Are you comfortable with them?

Unfortunately, there are a lot of builders who are just "salespeople" who talk the talk but aren't really experienced or knowledgable to really walk the walk. Building a home is a big investment so we suggest that you do your homework in finding the right builder for you.

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