Most of us would like to build our dream house at some point in our lives. Yet, unless you’re a licensed contractor or choose to go the owner-builder route, you’ll need someone to manage the project. So, what factors should you consider when selecting your builder?
While there are many factors to review, I’ll break our analysis down into two major categories: product and qualifications. Both categories should meet or exceed expectations, as without one, your dream home will quickly become a nightmare.
Product and Pricing
First and foremost, you must consider what you’re looking to build. Do you seek to build a large and extravagant villa, a starter home, or something in between? Different builders simply specialize in different houses.
Tract versus Custom Builders
Tract builders provide great value, but limit the level of customization. They will rarely build anything unique or suited to a customer’s particular taste. Their material quality is sometimes questionable, and the craftsmanship may be absent. It’s difficult to achieve a higher standard of quality when building hundreds, if not thousands, of houses every year. While tract builders play a tremendous role in the housing market and its affordability, they likely will not be capable of building your dream house.
If you seek to tailor the house to your tastes, you’ll need to find a custom builder. Custom builders produce far fewer houses per year than their tract builders counterparts, but are far more detail oriented. For example, we build only fifteen to twenty houses every year, and our supervisors are limited in the number of houses that they’re responsible for. However, custom builders may choose to operate in a certain monetary bracket, looking to only build above a certain price per square foot. Consider the features you’d like in a home and what they’d cost to include. Larger tile, solid core doors, and crown molding are all examples of nicer finishes that you’ll find in a custom house. The materials are more expensive, and thus require more skill to install them.
Budgets and Contracts
Consequently, you must mind your budget. It’s easy to select the most exciting features and finishes without realizing the price tag involved. I’d recommend creating a rough idea as to what you’d like to build, detailing the square footage, number of beds, type of flooring, and so on. Then, ask several builders to price it. You’ll receive estimates and can compare one company to another. If they’re provided with the same wish-list, you can determine who offers the best deal.
Next, ask the builders how they structure their contracts. In residential construction, we often see either lump-sum or cost-plus-fee arrangements. With a lump sum contract, the homeowner is guaranteed a final price, barring any change orders. On many multi-million dollar builds, we work with cost-plus-fee contracts. Cost-plus-fee contracts allow the homeowner more freedom to make changes during the build, and protect the builder from fluctuations in material or labor costs during the long project duration. These agreements charge the homeowner for every project expense and tack on a fee for the builder’s time and troubles.
Simply put, find a builder that specializes in the product you’re looking to live in and can build it within your budget.
Qualifications
You now know what you’d like to build and how much you’re willing to spend, but is your desired builder capable of putting it all together? It is critical to examine the builder’s reputation and history to determine if they can see the project through to completion. Otherwise, you might lose a fair bit of money and be left with a concrete slab.
Reputation
It is incredibly important to research your builder before signing any contracts. Reviews provide great insight into how the builder operates. So, search your builder online and look for reviews across Google, Houzz, or Facebook. Read the first-hand accounts that homeowners have published, and determine if your builder comes across as attentive and eager to please. Additionally, ask around in communities where your builder has been or seek out their subcontractors to try to gauge the builder’s reputation. If there are any gripes or grievances, you’ll be sure to hear about them.
History and Stability
Furthermore, read into the builder’s history. Our company, DiPrima Construction, has been in business since 1961. For 63 years, we’ve operated under the same general contractor’s license. Our company has built hundreds of houses across the county and beyond. The houses that we built several decades ago are still standing to this day, albeit, likely with some fresh paint.
In our industry, construction companies frequently face financial hardship and declare bankruptcy, only to open their doors again under a different name. Meanwhile, their subcontractors and clients end up footing the bill for their mistakes, and are left with nothing. Our home, Brevard County, has had its fair share of scandalous developers and builders, even in current times. Alternatively, our company’s financial stability plays a major role in our exceptional reputation. With a clean history and being known for making responsible decisions, DiPrima is proud to be one of the few construction companies that can make the same claims.