If you choose to use cost per square foot to make comparisons, you will be assured of getting the cheapest home. Nobody wants to waste money, but when you are making a major investment, you don't want your builder to cut corners. Making matters worse, not all builders use the same formula for computing square footage, so the numbers may be off.
Furthermore, using price per square foot
only works on homes with the same style, size, and specifications. For example
a two-story family room has the same square footage as a one-story room,
but it is more expensive. Another example is that a marble floor does not
take up any more space than a resilient floor, but it also costs more. With
custom homes, looking at the price per square foot makes about as much sense
as comparing the price per pound
Would getting three bids on my home
assure me of the lowest price?
While getting three bids might seem to
be the best way to secure a low price, it usually does not work. The three
main reasons are:
Unless your plans and specifications are 100% complete,
builders must guess in order to complete the bid. This will leave you comparing
apples and oranges. It will be impossible to determine which one is really
the lowest. What often happens is that people select the least expensive
builder only to find out that they do not like what the builder chose for
them. By the time they have changed the specifications, the house costs more
than they expected.
The people who really loose out, however, are the ones
who don't find out about the use of substandard quality labor and materials
until after they have moved into their new home. While they worked hard to
get the best price, they now discover that the house is not what they expected
and the utility and maintenance costs are higher than other comparable
homes. It is important to remember that the initial purchase price is
only part of the true cost of owning a home.
The fact is, if plans and specifications
are properly drawn and executed, three competent and reputable builders will
provide very similar bids. I recommend that you research the best builders
and find the one that you feel you can connect with. Partner with them to
determine what your budget is, select a site, design your home, secure financing,
build and service your home. Building a home requires a major investment
of both money and time. When comparing builders, finding a reputable builder
you trust is much more important than relying on the lowest bid.Should I buy my lot and have finished
plans before I interview builders?
Generally it is better to work with the
builder from the start for the following reasons:
People often purchase an
attractive property that ends up requiring extensive work in order to build
a house on it. With the additional cost needed to develop the property, the
home often ends up being smaller and of lesser quality than the owners had
in mind. A builder can help you work through the site condition issues, ensuring
that the home and property work complement each other and are within your
budget.
Most reputable and experienced builders have extensive knowledge
and reliable contacts that can make the entire process much easier for you.
They have an understanding of the market and will help you design a home
that meets your needs while working with the particular site conditions
and general location.
The following are the top ten qualities that you should consider when
you evaluate the potential builders of your new home:
Strong Reputation:
Check references not only of recent customers, but also of people who
have lived in their homes for a number of years. Poor quality may
not be apparent immediately.
Experienced:
This is a major investment for you. Make certain that the builder has
the experience and qualification necessary to build your home the
way you want it. You don't want someone learning on the job.
Trustworthy:
You want someone who you can trust. You will be relying on the builder
to make hundreds of important decisions, and you need to be confident
that he will treat you fairly. If you have the feeling that you are
going to have to check everything he does, I would recommend that
you find another builder.
Financial Strength:
The last thing you want is to be dragged into a fight between a builder
and his creditors. Before you give the builder any money, check with
their bank.
Understanding and Caring:
Building a custom home is a dream come true. You've probably spent
years thinking about it. Now you want to work with someone who will
take the time to help make your dream become a pleasant reality rather
than a nightmare. You probably will change your mind during the process
and the really good builders will try to work with you, while controlling
costs.
Encourages You To Inspect Homes Under Construction:
When a builder is really proud of his work, he will want you to see
it under construction. Look at the quality of the framing, the insulation,
the plumbing, the windows, and the craftsmanship and attitude of
the subcontractors. This means much more than a glossy brochure.
Efficient Building Process In Place:
Time is money. While the building process is complicated and involves
hundreds of people and components, an efficient computerized scheduling
system will help the process move quickly and save you money. Be
suspicious of a builder who says he keeps everything in his head
or on a clipboard.
Detailed Specifications:
The best builders go out of their way to make certain that you both
agree on exactly what will be in the home. They would rather loose
a potential customer at the beginning of the process than have a
surprised or disappointed customer later. If you don't know exactly
what you are getting, ask for it in writing.
Long Term Relationships With Quality Subcontractors:
Most builders subcontract out much of the actual building process.
The best builders have strong long-term relationships with their
subcontractors. That is the only way to maintain a high level of
quality and service. Builders who constantly switch subcontractors
in search of the lowest price, often end up with lesser quality and
longer building times. Instead of being partners in building a quality
home, the subcontractors see themselves more as mercenaries, and
they lack the pride that it necessary to build a great home.
Good Communicator:
Part of building a home without having any unpleasant surprises is
having a builder that has strong communication skills. They must
be willing and able to constructively discuss any issues that may
surface while building your home.
