10 Important Questions To Ask a Custom Home Builder
June 20th, 2024
Important Questions To Ask a Custom Home Builder
Are you interested in building a custom home? Here are some essential questions to ask a custom home builder, as well as everything else you should know before doing so.
When building a custom home, many questions must be considered. The most crucial decision is who to work with. There are many home builders, so it's essential to find the one who meets all your needs and preferences.
When you are considering building a custom home, you also need to consider when the best time to contact one and start is, whether before you begin the design phase or a little later. Building your home early will help ensure your home design and desired budget stay aligned, as well as many other benefits.
Americans have been choosing custom-built homes ever since the 2020 pandemic. Despite the challenges across other industries, homebuilding continues to perform strongly. Overall, housing production was up nearly 2% since September, with single-family housing starting up 8.5% thanks to low interest rates, according to the National Association of Home Builders (NAHB).
To help you find the perfect person for this job, you need to make sure you ask the right questions so you can see the right candidate. Building a custom house is a dream for many people, so making sure you do it right will help in the long process. Check out other available homes for sale to get an idea of what you want your dream home to look like.
Here are the important questions to ask a custom home builder.
Chapters
1. How Long Have You Been Building Custom Homes?
When you are looking for a professional for any type of job, you should know how long they have been in that field and how many years of experience they have. If you are in the market for a new home, you should shop for a builder as you would a house.
You can consider builders with more experience to give you confidence that they can eventually support the project. However, you should not always only hire builders with decades of experience because some young builders educate themselves and are up to date with the latest techniques.
Overall, you should also ask the builder for references from recent buyers and occupants. You may also check with the Better Business Bureau for any complaints and verify that they have worker's compensation and general liability insurance ahead of time.
According to the National Association of Home Builders, this is how you should choose a home builder:
- Research home builders in your area
- Ask for home builder recommendations
- Visit and tour new homes in your area
- Find out if the builder has a reputable business
- Ask about contracts, pricing, and payment schedules
- Inquire about a home builder's business practices
- Learn their level of customer service
- Ask about their experience
- Learn about the industry education and involvement
- Ask for references
2. Do You Have a Portfolio?
Like other jobs, asking if they have a portfolio of finished work is important. While some custom home builders have a for-sale model available to tour, some may not. If your custom home builder does not have a model to tour, you can ask for a portfolio of photos of homes they have built to decide if they are your style.
You may also want to tour an actual construction site so you can see how the builder keeps their site clean, safe and organized. You will be able to see beyond the walls to see how your home will be built and the quality of materials they use.
3. How Customizable Is My Custom Home?
If you want to make any changes to your custom home during the construction process, you will want to find an acceptable and flexible builder. You are customizing your home, so it is essential for both you and the builder to make sure it turns out how you want it.
Sometimes, you may change your mind about flooring, cabinets, or even bigger things like the size of the home, so it is good to know if there is a deadline to make any changes or upgrades to the plans so you have time to update them if you have to.
4. How Close Do You Work With The Architect and Interior Designer?
When you are searching for a home builder, you might want to find someone who prioritizes a collaborative partnership with your architect and interior designer. Having this bond will help prevent miscommunications that can lead to tension, schedule delays, and any extra costs.
Listening to how they approach relationships with your design team will also give you a good idea of how they will communicate with you. Having relationships in this type of work is essential because you are custom building a home, and if the person working with you understands you and listens, you will feel more confident with your choice and with the house.
5. What Is Your Estimating Process?
Listen and ask your builder about their estimating process, which should be extremely thorough. Their preliminary estimate will be based on historical hard cost as well as current market pricing, so you need to feel confident in their work and experience and make sure it's worth it.
The detailed budget that the builder develops will be completed after the plans are finalized and will be based on complex bids from vendors and subcontractors in their network. You might want to ensure that multiple bids are secured from high-quality subcontractors and that they are all comprehensive. You also want to know and understand the budgets and costs.
Below is a rough breakdown of the overall cost of building a home:
| Labor Cost | 40% |
| Materials Cost | 50% |
| Administrative, Design, and Permit Cost | 10% |
| Buffer in Budget | 20% |
6. Who Will Be Assigned To My Project?
When you are first starting, and you are early in the project, the builder might not be able to tell you for sure who will be working on the project when construction starts. However, you should learn a couple of things about the people projected to work on the project.
- What do each of their project templates look like (Construction managers? Project managers? In-office support team?)
- How heavily their project teams are loaded up at any time (Highly complex custom-built homes, projects being under supervision)
Building a custom-built home is a big deal, so the buyer needs to know who is in charge and who is overlooking everything, even the basic things. You are spending the money to build your dream home, so you have every right to know who will be doing that for you.
7. How Long Will The Project Take?
According to 2020 U.S. Census Bureau data, the Survey of Construction estimates the average length of time to complete a new privately owned residential building in the South is about 6.8 months. Additional time also needs to be factored in for outside influences such as supply chain and labor issues, as well as customizations.
The answer will vary depending on many factors, such as the size and complexity of your home design. A custom home can take anywhere from 10 months to 24 months. Things happen, the market changes, and people can back out, so it is important to have a buffer zone and a plan in case any unforeseen circumstances occur.
You will want to know how organized the builder's systems are and how experienced they are to understand how they will take on the project, how they will schedule everything, and how proactive they will be at solving problems before they arise.
8. What Is The Builder Looking For With A Client Relationship?
This question may not seem important, but it is an excellent way to get a better understanding of the communication process during the home-building journey. Asking the builder how and how often they will communicate with you during the process will help you be involved and understand what's going on so you are not in the dark.
All builders should recognize that while they build homes every day, you do not, so you can ask any question you want and feel comfortable doing so. A quality builder will be able to give you the answers you need to feel confident in your abilities and communication.
9. What Services Do You Provide To Overcome Challenges?
Asking the builder what services they provide to overcome challenges from building on the land is important because they should be able to provide a list and manage specific issues. Be prepared not just to ask the question but also to ask about certain things such as:
- Title issues
- Access to land
- Floodplain issues
- Lot splits
- Building abstract
- City codes
- Permits
- Well
- Septic
- Soil testing
- Is the land buildable
- Any hidden easements from oil or gas
You can ask many other things and should feel comfortable asking the builder. Doing a walkthrough of the land may even help you feel more confident about the lot you chose. It can also build that relationship and communication with the builder so you are in the loop with everything.
10. Preparation Is Key
The goal of building a truly your home is all behind the customization, from the layout and floor plan to the simple finishes, appliances, and design. If you are thinking about building a custom home, you need to be prepared and have a plan.
Here are the six steps you should take when you are choosing the custom home-building process:
- Choose and purchase a lot or property
- Decide on a budget for your home
- Find a team to help you with the design and build
- Build the home
- Close on the home
- Warranty and services
The custom home building process is long and involved, but if you choose experienced builders who prioritize your needs and goals, you can achieve the perfect outcome. Understanding the entire process and asking specific questions to find the best person to build your home is essential. Planning ahead will help alleviate the stress of this process.
Methodology
We used information from different sources and our data to create this guide about important questions to ask a custom home builder. There were various data sets to use, so we put them together to help you understand the important questions to ask a custom home builder.
- National Association of Home Builders (NAHB)
- U.S. Census Bureau
- Better Business Bureau
- National Association of Realtors
The following are a few sources we used to gather most of our information about important questions to ask a custom home builder.
FAQS
What are the main questions to ask when building a custom home?
According to NAHB, you should always ask for references, budgets, floor plan options, customization, and other things to make sure they can do what you want for the house.
What you should know before you build a custom home?
Make sure you leave room in your budget, start simple and add on later, start early with your building plans, reach out to others who have built homes and do not strive for perfection.
How do you negotiate with a custom home builder?
If you want to negotiate with the builder, ask if there are any discounts available, such as a preferred lender or agreeing to use discontinued materials or items they have on hand. Be clear about what you want, ask all the questions, and make sure you communicate well overall.
Important Questions To Ask a Custom Home Builder - The Bottom Line
Custom building a home is among the most significant purchases in your life, and it's your chance to have the home you've been dreaming about finally. Finding the right person to build your home is crucial, so don't simply settle for the first builder you encounter. Take the time to research.
Asking the right questions and thoroughly vetting potential candidates is imperative to finding the perfect person for the job. Building a custom house is a dream for many, so ensuring that it's done right will be paramount in the long run.
The new home market is becoming a dominant player, and we expect it to continue in 2024. According to the National Association of Home Builders, single-family housing starts nationwide are forecast to increase by 4.7% this year and about 4.2% in 2025, reaching a pace of 1.3 million units.
If you are considering moving or selling, contact us or visit our website. Our team at Raleigh Realty is here to help you with any home buying or selling needs.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
Related Blogs
