by Scott Stonebreaker
If you’re building a new home you may feel that working with a homebuilder is a daunting task, especially if you’ve heard of people who’ve had a bad experience. However, do not assume “one bad apple spoils the bunch,” when it comes to builders. As with any industry, there are a handful of unscrupulous companies consumers need to be weary of. While most builders are reputable, it’s up to you, the consumer, to do your homework to ensure you’re comfortable with the builder you’ve selected and that you understand the building process you’re about encounter. Don’t let fears and misconceptions keep you from the home of your dreams. Here’s how to get started with confidence:
Find out how long your builder has been in business.
If he’s lasted five or ten years he’s probably built a quality reputation and is able to satisfy his customers. Most established builders are members of local trade organizations and are active in the community. Contact your local homebuilder association and ask for a list of builders in your area. Visit Homebuilders Association of Greater Fox Valley at www.buildfoxvalley.com for a listing of Kane county builders.
Don’t hesitate to ask for references.
The best way to find out about a builder’s business ethic is to speak with satisfied buyers. They’ll be able to attest to quality of work, timeliness of maintenance issues, and many other important issues that arise during the building process.
See the quality of work with your own eyes.
If you’re buying an existing new home you have the luxury of seeing the product before you buy it, but if you’re building, you’re often working from floor plans and samples which can be hard to envision. Ask your builder to show you a home he’s built. He may have a finished home for sale you can walk through, or he can ask a previous buyer to show their home. It’s the best way to see exactly what you’re paying for.
Educate yourself on the real estate market.
Find out what similar homes are selling for, keeping in mind that if you’re building, new home pricing will be higher as construction costs continually rise. Learning about the value of your home will boost your confidence in you builder knowing you’re receiving competitive pricing. How can you learn about market value? Check out the real estate sections of local papers and compare the selling price of similar homes. Tour model homes in the area to see what features and options are offered and at what price. The internet is also very useful in researching homes for sale as well as new communities.
Learn about the building process.
If you’re purchasing an existing new home your main concerns will be the “walk-through” prior to closing, warranty coverage, and maintenance follow-up. Prior to signing a contract discuss these topics with your builder to ensure you both have the same expectations upon closing.
While building a new home can seem overwhelming, homebuyers that understand the process will find the experience much more enjoyable. Most builders have systems in place to walk homebuyers through the process with comfort and ease. But, doing your part in understanding the steps and timelines involved will alleviate stress and help avoid any misunderstandings. It’s a good idea to familiarize yourself with the process prior to interviewing builders, as you’ll be able to ask more in-depth questions. The more you know, the easier it will be to select a builder that’s a good fit with your expectations. A good place to start your research is the National Association of Home Builders (www.nahb.com) website where you’ll find a wealth of consumer-based information about building a home.
Develop a realistic budget.
Unless you have an unlimited budget, you’ll probably have to compromise on your “wish list” due to cost restraints. Determine ahead of time what specific items are “must haves.” Whether it’s a chef’s kitchen, granite countertops, a luxury master suite, or a three-car garage, itemize these essentials in order of importance and get pricing from your builder upfront. Knowing ahead of time what you can realistically afford will alleviate added stress and emotions you may encounter. Plus, this will help ensure you and your builder are on the same page.
Connect with your builder.
Communication is the key to a successful relationship with your builder. If you’re purchasing an existing home, it’s not quite as essential to hit if off with your builder since there will be minimal contact after the purchase. If you’re planning to build, interview several builders to find one you’re comfortable with. Ask to meet the customer service representative as well as the site manager because in most cases you’ll be working closely with these people as well. As they say, once you get married any annoyances or issues are magnified after the ceremony, the same goes for the relationship with your builder. The process is very detailed, very timely, and can be stressful for homebuyers as this is probably the largest and most important purchase you will make. If you’re not comfortable with your builder, do not trust your builder, or have difficulty communicating, you may be in for a rough road ahead.
The most important way to combat any fears or misconceptions is to simply arm yourself with information. Most people research a car before they make the purchase, but few spend as much time researching the most important purchase they’ll ever make, their new home. One last piece of advice, remember to enjoy yourself along the way. Buying a new home should be an exciting and memorable event for everyone involved.
Scott Stonebreaker is the past president of the Homebuilders Association of Fox Valley. For questions or comments, Scott can be reached via email at scott@stonebreakerbuilders.com.
