5 Tips on Choosing a Custom Homebuilder

Financial Solvency of the Custom Home Builder - Many custom home building firms even in the best of times are literally living from job draw to job draw. They rob Peter Client to pay Paul Client’s bills. Then rob Paul Client to pay Peter clients’ bills. Then they build spec homes (homes without a current client) that are not well thought out, or overpriced and the spec home sits, not selling, then the builder robs Peter Client and Paul Client to pay the ‘spec house the builder is sitting with’s bills’. Eventually it catches up to the builder and the client ends up with a failed builder halfway through building their dream home and worse, liens filed against their home and lot that have to be satisfied. Plus any downtick in the economy means these “pick-up truck” builders are the first to go out of business leaving a mess behind.

Skill and Experience Level of the Custom Home Builder - Many custom builders have no business being in the custom building business. They were a former engineer, or fired from their job or left a job because they thought that building homes looked like fun. This happens more than you know. Choosing a builder with a wealth of actual custom home building experience is critical to getting the right value and the best quality for one of the biggest investments most people ever make in their life.

Support Team around the Builder – Most builders work out of their pick-up truck with no dedicated help except sub-contractors that work for multiple builders and are always shuffling off to one job or the next. If that builder goes down for an illness at any particular time, then his presence at critical junctures of the building process is then left up to subs in the field that do not have the clients best interest at heart. Choosing a custom builder that has a skilled team that is two deep at the critical skill areas is paramount for the custom building process and to protect your investment. It means selecting not just a custom home builder but selecting a custom home building firm. Insist on meeting the builder’s dedicated team.

Client protection measures by the Builder - There are protections that can protect the clients although there are no complete protections from a builder that has mismanaged his business or is in the process of going bust. But a custom builder who will not agree to provide lien waivers through the building process from his sub-contractors is not a builder to be trusted. Furthermore a client should be willing to get the closing attorney to do updated title searches before the allowance of the next draw requests. Or the safest bet is to check the custom building company’s financials out in advance of selecting a builder for your dream home.

Make sure a Builder is offering adequate warranty protection - What a custom builder offers in the form of warranty protection after the home is built is very important. Also making sure a custom home builder will be around to honor an agreement is equally important. Typical warranties are one year from the date of certificate of occupancy. Expect more, demand more from your custom home building firm.