Buying a new home is one of the most important decisions a person can make in their lifetime. It is surprising how many people do not do their home work. We recommend that you fully research the decision you are making before you proceed. Here are a few questions that we recommend you consider when selecting a builder to construct your new home.

EXPERIENCE

                 • How long has the builder been in business?
• How many homes of the size and quality you are seeking has the Builder completed?
• Has ever not completed a home that he has started?
• In what price range are the Builder’s average home ?
• What is the Builder’s average size home?
• Where did the builder learn his profession?
• Does the Builder appear to be well organized?

BUSINESS THEORY

                 • How many other jobs will the Builder be undertaking while he is working on your project?
• Will the customer be able to talk directly to the Builder?
• What aspects of the job does the Builder perform himself?
• Is there a job supervisor, or does the Builder perform his own supervising?
• How long has the average subcontractor been working for the Builder?
• What is the Builder’s policy with regard to Change Orders?
• Does the Builder appear flexible?

REFERENCES AND PROFESSIONAL ORGANIZATIONS

                 • Ask the Builder to provide a list of customer references.
• Ask the Builder to provide a list of banking, professional and trade references.
• Is the Builder a member, or has he ever held office in a professional trade association (ie. National Association of Home Builders).
• Does the Builder belong to any civic associations?

CONTRACT ISSUES

                 • Is the Builder willing to put everything in writing?
• What is the payment schedule?
• What is the payment policy for extras (ie. Deposit up front, balance due when)?
• Is there a specifications book provided to the buyers?
• Is there a mortgage contingency?

SERVICE AND WARRANTY

                 • When will the final walk through be scheduled?
• Are there periodic walk-throughs scheduled in the first year of ownership?
• What warranty company does the Builder belong to?
• How do you contact the Builder to schedule a warranty service call?
• Who will perform the Builder’s warranty service calls?

Finally, you should make sure that your Builder is financially sound. Many home buyers have been unhappily surprised when they found out that their Builder could not afford to finish their new home or renovation. By that point it was too late, the customer was already financially married to the builder, and his problems become their problems.

Spend the time you need researching your Home Builder before you sign a contract. You need to make sure that your choice of a Builder is the right fit for you.



Developed and hosted by Alonso Consulting, Inc
Short Hills Plaza
636 Morris Turnpike, Suite 2C
Short Hills, NJ 07078
(973) 376-3000
(973) 376-3010 Fax