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Real Estate professionals have written articles to help you with the home buying and selling process. To see the meaning of particular words, click the links in the articles to go to the Real Estate Dictionary.
 
Education Center
Education Center > Buying a Home > Questions to Ask Your Custom Builder

 
Questions to Ask Your Custom Builder

When choosing the builder for your custom home, you should interview potential builder candidates. It is important that there is a good relationship between you and the builder. Focusing on key questions will help you make the right choice.

  1. Pricing
    1. In what price range does the builder specialize?
    2. How does the builder arrive at a final price?
    3. What earnest money will be required?
    4. What funds will be required for changes and upgrades after approval of the initial construction documents and when will these be paid?

  2. Staff
    1. Who will supervise the subcontractors?
    2. How many persons are on staff and what are their responsibilities?
    3. How many homes per year will they build?
    4. How many homes has the builder built? What is the builder's background?

  3. Procedures
    1. How will the builder communicate with you during the project?
    2. How will change orders be implemented?
    3. How does the builder handle problems that arise during building?
    4. How long will it take to build a home your size and price range?
    5. Can the builder provide you with a general schedule with the different stages and a timetable?
    6. What are the builder's procedures for drawing funds from the construction financing?
    7. In the event that there is dispute, what funds are refundable and under what circumstances?
    8. What are the details of the builder's warranty?
    9. What is the procedure for items that will need attention during the first year?
    10. What contract form does the builder use and may you take it for review?

  4. Inventory
    1. What lots does the builder now own or have access to?
    2. Is the builder restricted to certain subdivisions or areas?
    3. Will the builder build on a lot you currently own?

  5. Track Record
    1. What homes has the builder built in the area in your price range?
    2. Will the builder provide you with references and their contact information?

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Education Center is intended to be informational only. Please be advised that real estate practices vary from state to state and market to market. The information contained herein does not constitute legal advice. It is recommended that you consult with a qualified real estate attorney who can advise you specifically with respect to the requirements in your market.