An interesting revolution is occurring in the home building market. More potential clients are demanding higher efficiency in every aspect of the building process; from the interior design options to construction materials that consider energy efficiency and even environmentally safe landscaping. It seems that a growing number of new home buyers are realizing that traditional production home building is not the answer to these demands.
These increasing requests from the consumer have created a boom in the custom home building arena. Clients can work one–on–one with a custom home builder to create a home that will truly meet their wants and needs. Providing real solutions to homeowners for over 6 years has given us the knowledge, experience and relationships to manage and handle projects from ground zero. In the months to follow, weÂ’ll provide a framework that will lead to an overall understanding of the custom home building process and may help provide key solutions to potential problems when building:
THE FRAMEWORK
- Selecting your builder
- The plan design process
- Interior design
- Slab construction
- Framing construction
- Mechanical, plumbing, electrical and low voltage
- Masonry and exterior veneer
- Trim, tile and cabinets
- Final trim
- Final walkthrough, inspections and closing
SELECTING YOUR BUILDER WHAT YOU NEED TO KNOW!!! So many times in my business I get the phone call that makes me cringe inside… "We have tried so hard and just can’t seem to get the right answers, my builder won’t call me back and it has been 6 long months with only a small preliminary design, and to think he has $15,000.00 of my money!!!!”
My father once told that investigation can be the key to unlocking trust and successful relationships. Oh how he was right. The moment I set foot into this market as a custom home builder, I felt the cold chagrin immediately. Total distrust was the instant reaction when mixing builders with homeowners. As my business began to grow almost immediately I noticed that most of the horror stories were pinned on the fact that most prospective homeowners never took the time to challenge what their distrustful builder had done in the past. Having been in other businesses that relied heavily on referrals, I immediately created a network of homeowners from what little work I had completed. From there I began a prospect referral form.
Asking for referrals… Actually investigating the product from the homeowner’s standpoint is key factor number one when interviewing and selecting your future builder. Although there is a risk for the “SET UP”, the builder providing numbers of friends and family who he may or may not have built for, chances are with the proper probing you can identify and unmask the answers you are looking for. It’s a good idea to ask questions that not only identify the product and its worthiness, but also inquire into the financial health of the builder. The most promising disappointment could be the best builder who financially cannot meet the obligation!
The Big DepositÂ… Understanding that builders are in business to make money and to provide a product which identifies and characterizes the heart of their clientele, it goes without saying that if they want to much upfront, chances are they are treading on thin ice! ItÂ’s not uncommon for some custom builders to require large initial deposits, sometimes even asking for 10% before the project starts. Always pay close attention to the amount of money that a builder is asking for. Remember there are an extremely large amount of initial expenditures; however, most successful builders should have the resources to sustain until the slab has been poured and a draw can be administered. Th e industry standard is usually between $2000 dollars and 3 percent of the cost of the home. This will allow the builder adequate insurance from you the homeowner that you will not walk and take your business elsewhere. Also keep in mind that once you have signed contracts and entered into a construction loan it is almost unheard of that you (the client) walk away; remember the interim loan and financing are usually in your name.
Pick up the phoneÂ… Sometimes the most disappointing part of wanting something is it not wanting you back!!!! The most frustrating part of the process is conducting a great interview with the builder, getting a good feeling (one that provides goosebumps of course), and then him not returning your calls or you not being able to reach him. This should be a key indicator of what the future has to hold. If the phone calls stop, or you cannot reach your prospective builder, chances are he will fail as he does in the beginning. Remember, if it takes 5 months longer to construct your home because the builder will not pick up the phone then that is 5 more months of increased costs and interest.
There are several factors to consider when constructing a new home with a custom builder. Today we have analyzed and hopefully provided a guide in which you can make an educated decision on your builder. Always ask for referrals, consider the amount of money they require to get started, and address any communication difficulties up front. Although there are many other considerations, these simple tips can be the difference between choosing the good from the bad!
