Criteria for Choosing a Home Builder

As you've already begun to find out, building a home can be a rewarding but stressful process from the very beginning, starting with picking a builder. There are six main competencies that we believe are important in a good builder. With each competency, we have included a brief summary of what each one is and why it's important criteria for you to evaluate. We have also provided several questions, which are examples that you can use to ask the previous customers, subcontractors, and banks to help get their opinion on each builder. These are just suggestions you might ask; just be sure and ask anything that you feel is important and that you don't know enough about.

In order to use these criteria, you're going to need to request a few things from each builder you plan on interviewing. For example, you will need a list of previous customers, a list of subcontractors, and a list of banks that you can contact to find out information regarding each builder. It would also be helpful if the builder had a few pages including various information about himself, his company, and the way he runs his business.

Even though all the information will be helpful, nothing is more important than how you perceive the builder yourself, so schedule a one-on-one meeting to get to know him. And while you're there don't be afraid to ask the builder, or anyone else you talk to, anything you can think of. You'll be spending months with the builder you choose, and hopefully a lifetime in the house he builds for you, so you need to make sure that the two of you can work together to make your dream house a reality.

Competencies of a Good Builder

Financial Responsibility | Stability of Organization | Responsibility | Customer Orientation | Attention to Detail | Integrity

Financial Responsibility: This competency refers to how the builder manages his/your money. It also refers to what you get (value) in the end after trusting the builder with your money. It is important because some in the construction industry do not manage the financial aspects of their business, and this is detrimental to their customers.

1. Does the builder pay the subs on time and with the correct amounts?
2. How is the builder's financial standing with the bank?
3. Does the builder usually build his homes within or under the budget?
4. How does the customer receive the value of the home they received in relation to what they paid for?
5. Are the draws accurate and occur according to the payment schedule?
6. Does the builder have any personal debt (run a credit report)?

Stability of Organization: This competency refers to the overall soundness of the builder's business and the people that comprise it. This is important because, the stronger of a relationship the builder has with his subs and his employees the more willing they will be to help him out and build a higher quality house.

1. How long have subs worked for him?
2. How many subs has the builder fired in the last 6 months?
3. How many homes does the builder construct a year (last 3 years)?
4. What experience does builder's foreman have, and how long has he been with the builder?

Responsibility: This competency refers to the builder's level of responsibility in every aspect of the building process. This is important because you need to feel like the builder is in control of every level of the building process, and that he will take responsibility and make sure that your home gets built in a timely manner and of the utmost quality.

1. Is builder responsible to do the things he promises?
2. Does he keep his meeting dates, and is he punctual?
3. Do he and his secretaries keep accurate data on expense items for homes?
4. Does he take the time to go to the job site each day to ensure the quality and timeliness of the construction?

Customer Orientation: This competency refers to both the initial and long-term amount and quality of time the builder spends with you discussing your new home. This is important because some builders pay attention to every detail at the beginning of the building process, but then tend to let things slip as the job progresses.

1. Does the builder take adequate time to discuss issues near and dear to the customer?
2. Does he truly listen to what you are saying and make you feel that he understands you? Not just in the beginning, but all the way through to the end.
3. Does the builder take the time to work in a "one on one" environment with the customer?
4. Are the people he surrounds himself with professional, courteous, and helpful? (office, staff, sub, etc.)

Attention to Detail: This competency refers to the builder's drive to make sure that the house that is being built for the client is exactly the house that they want. It also applies to the attention that the builder pays to his office staff and his subs to ensure that they are on top of everything. This is important because what seems like a small oversight can end up costing both the builder and the client quite a bit of money and time if it's not caught early in the building process.

1. Do the foreman and the builder catch mistakes before they become problems?
2. Is the builder's contract clear, accurate, and concise?
3. Does the builder listen and react to the concerns and questions that the homeowner has?
4. Does the builder make sure that each subcontractor knows exactly what is expected of him or her on the job?

Integrity: This competency refers to the builder's overall sincerity, honesty, and candor. This is important because the person you choose is going to be someone who you'll dedicating quite a bit of time and money too. You want to make sure that he's someone who will give you the quality you're paying for in every aspect.

1. Does he admit mistakes and take responsibility to rectify them?
2. Does the builder lie, exaggerate, make excuses, etc. to save himself?
3. Is he honest when things aren't going as planned, and doesn't just try to hide it from the customer?