11 Things to look for when choosing a New Home Builder | Tips and Warnings

Why choose a home builder?

One major factor of choosing a home builder is so that they can take the responsibility of building the home until you pay them. In most cases, you will share your desire or view a show home and the builder will take care of the full responsibility of the build.

Why Should I pay attention to these tips?

As long as I have been in the mortgage business, I have seen many builder provide products that were not what the clients expected, I have seen builders take years to complete a home they promised in 9 months and I have seen many builders go bankrupt! It even happened to me on my first build.

Tips to choosing a builder.

Contact a realtor:

Many realtors will know which builders are good and which are bad. Some mortgage brokers may also be able to assist you with this. A good realtor will also know the new developments and which builder will be building in those areas

Pay attention at your local grocery stores and convenience store for magazine stands with new home magazines.

This might help you find builders, you have not considered

3. Check reviews: Once you have chosen a builder, research online as many reviews as you can find. Do not sign anything until you do this.

Ask the builder if you can view some homes they have completed.

Some things to look for will be the overall quality of work, the appliances and the furnace and hot water tank. If everything is on the low end in front of your face, then you can assume everything is low end behind the walls. Do not work with a cheap builder. They will give you problems in the future.

Speak to owners:

Ask to interview some owners and get their take on the builder. Remember , this could be the biggest investment you ever make.

Make your decision with resale in mind:

Speak to a realtor of a mortgage broker about what types of home sell faster than others. I made the mistake of buying a 2 bed up bi level in the past, when most people wanted 3 bed up bungalows or 2 stories. I ended up selling for way less than I thought!

Look for salaried sales people:

If they have a salaried salesperson in their show home, that is a good sign that they can afford to complete your build.

Avoid draw mortgage builders:

If your builder is asking you for a draw mortgage, that is a sign they may not have enough money to complete your project

Find out how long they have been building and have been a registered builder:

Check online at the builders association or by searching the builders status with the warranty companies

Ask if they have a site superintendent:

Those companies that have this will likely fix your problems fast

Ask about flexibility to floor plans and changes before you sign anything.

Some builders will not allow you to make any changes.

Check for legal issues

through google or through your local courts

Get Consent

Do not ever allow a builder to add anything without your consent.

Increase the price:

Builders will sometimes try to increase the price if material prices go up. This is not legal.