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Seven Tips For Selecting a New Home Builder With Strong Credentials

Jul. 21st, 2011
in Buying Real Estate
by Submission

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A great deal of forethought goes into the pre-planning process when you decide to construct your dream house. It’s a decision that requires thorough consideration. Yet when it comes to selecting a new home builder for your dream house, buyers are sometimes at a loss as to what qualities to look for.

Leafing through the phone book or going online is the first step that most home buyers usually take when looking for a new home builder. However, finding someone that you can trust to build your dream house requires a bit more research. Don’t just choose the first one that you come across. At least, not until you know more about them.

Gather a list of new home builders whom you think can get you the results that you want. Building a list is easier than it sounds as you’ll quickly learn that there are dozens that you can choose from. The next thing to do from here is to use these seven handy tips to guide you in your selection:

1) Ensure that a builder is properly licensed and certified. Anyone can purchase advertising space on a phone book or set up a website. This doesn’t automatically mean that the individuals behind them are accredited or legal business owners.

Every state has differing laws regarding the types of qualifications and certifications a new home builder must have and almost all states, including California, have certain licensing requirements that contractors must meet. Check with the appropriate licensing agency in your state to ensure that a particular builder is licensed.

However, since each state has different requirements, there are times wherein licensing doesn’t include certification. This is why it’s beneficial to find out what qualifications or certifications the head contractor or owner possesses. Did he or she go to school? If so, what did he/she study? Did he/she receive a diploma or degree?

Sometimes these facts are harder to discover. However, a qualified new home builder will be eager to share this information with you. All you’ll need to do is verify this information with the governing or granting body. Those who refuse to publicize this information may do so because they have no certification or education. If this is the case, it’s best to find someone else to construct your dream house.

2) Look for membership in an industry-governing watchdog group. A quality, professional will most likely be a member of one, if not several building associations for the simple reason that there are national, regional and local codes that they must adhere to. The National Association of Home Builders (NAHB) is one such organization and one of, if not the, most well known in the country.

Such associations are industry-governing bodies which develop and set best-practice standards for the industry as a whole. Membership is voluntary but can only be obtained and maintained when the company agrees to adhere to these standards of practice. The standards cover a variety of aspects. They include how to construct a quality product, how to relate to customers, how to carry out financial transactions and more.

Choose a new home builder who is a member in good standing with the NAHB or another, similar group. This provides you assurance that the industry has already verified the contractor you’ve chosen.

3) Ask your friends for recommendations. You probably know someone else who has already built or purchased a new home. Ask around; find out which contractors your friends or family may have worked with and what they thought of them. Word of mouth and personal experience are often the most reliable way to choose a competent new home builder.

4) Check out a company’s previous projects. Ask a contractor what projects he or she has already completed. Drive by one or more. Better yet, visit one and get a tour if possible. Seeing someone’s work in real life, in person is the only way to get a true feel for what he or she is capable of doing.

5) Ask for references. Find out if a particular contractor can provide you with names and numbers of previous clients. An experienced new home builder will easily be able to provide you at least three past clients who can vouch for their workmanship. Then, take the time to actually contact them and ask questions.

6) Make sure a contractor is properly insured. Once you’ve narrowed your list down, make sure that the contractor or contractors that you have selected are properly insured. Find out how much the company offers in terms of liability insurance and what this entails.

7) Get everything in writing. It’s okay to ask for a written contract. A new home builder that is reluctant to provide a written estimate or a contract probably may end up adding more to the original cost than you can afford.

Few things are more disheartening than when you construct your dream house based on a verbal contract only to have things go awry. Construction stops, and you may be left with a partially finished home and bills you’re still responsible to pay. Getting everything in writing protects you both legally and financially.

When you build your dream home, it’s best to get it done right. Shea Real Estate offers tips for home buyers and homeowners alike on our official blog: San Diego Real Estate Agents.

http://www.shea-realestate.com

http://www.san-diego-real-estate-agents.com

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