Selecting Your Builder

One of the more important decisions you will make as you begin the home-building process is your choice of a builder. Industry experts recommend that you make this decision sooner rather than later in the process. Because builders can offer invaluable insight on site selection, home design, and other characteristics involving your future home, early input is often critical to the successful completion of your home. The following information will provide you with some helpful insight into working with your builder.

Evaluating Your Builder

Many in the industry suggest that you focus less on cost and more on your builder's professional track record, financial stability, warranty coverage, and experience. You also should consider working with a local builder who's familiar with the area where you are planning to build your home. This familiarity allows your builder to answer important questions about local building codes and subcontracting practices. In the final analysis, make sure to select a builder whose quality of homes impresses you.

Working Effectively with Your Builder

As with any endeavor, it's best to start on a good foundation. To help ensure a good working relationship with your contractor, we suggest the following:

• Draft a well-written contract with provisions to protect your interests in the event that the terms of your agreement are not met.
• Schedule frequent meetings with your builder and project manager to discuss issues of importance pertaining to the construction of your home.
• File and retain access to documents outlining charges and expenses.
• Establish clear rules for open communication and distribute phone lists of all relevant parties.

Potential Problem Areas

As your home is being built, some issues may arise. Here are some guidelines in dealing with three of the most common problems:

• Problem: The cost of your home begins exceeding the amount of your loan. Action: If this occurs, immediately schedule a meeting with your builder to discuss where you might cut costs.
• Problem: You don't approve of the materials your builder has chosen. Action: Discuss the option of changing orders. This will likely cost your more and cause some delays.
• Problem: Your builder wants to charge extra for certain work. Action: A careful plan will help you avoid costly changes.