Choosing a Custom Home Builder - Key Questions to Ask

Article by Brandon Cornett

So, you've decided to turn your dream home into a reality and are ready to find a custom builder to make it happen. That's great! There are many custom home builders to choose from in most cities across the U.S.

At the same time, however, there are builders who perform shoddy work or don't complete projects at all (thankfully, the minority). It's like any other industry in this regard -- there are some good apples and some bad ones.

So let's talk about the questions you should ask when screening custom builders for the project you have in mind.

Whether you ask the home builder these questions directly, or you find the answers through indirect means, you will want to know the following:

1. How many custom homes do you build each year?

This question will help you get a general idea as to the builders skill and experience. If they only build one or two homes a year, it could mean one of two things. Maybe they are a very exclusive builder who takes their time with custom projects. Or maybe they start a lot of homes but do not finish them.

On the other hand, if the custom builder completes quite a few projects each year, you know that (A) they are well practiced at building custom homes (B) they do a good enough job to keep getting new business.

Most reputable builders will have a project gallery on their websites, along with other information about the homes they have built in the past. In addition to being informative, this is a good sign because it shows the builder takes pride in his work.

2. How long have you been building custom homes?

This is an extension of the last question. If the builder has been a number of homes each year for many years, it's another sign that they are a reputable builder with happy customers. Otherwise, they would not have been in business for so long.

On the other hand, if the builder tells you they just started doing business this year, it could be a red flag. It either means that the company lacks experience, or that it has operated under a different name in the past and are trying to keep that a secret.

Don't get me wrong. Every custom home builder is a "newbie" at some point. After all, a company has to start somewhere. I'm only saying that if the builder has been around for a while, you have less to worry about and your homework will be easier. But if the builder is brand new, you will have to do a bit of digging to determine their true level of quality. And that brings us to the next question.

3. Have you ever operated under a different name?

Some people feel like they are snooping when asking a question such as this. Don't feel that way. With the amount of money you'll be paying the builder, you have the right to ask them tough questions. You are simply being a smart consumer and performing your due diligence. It's the same thing as when a mortgage lender puts your financial history under the microscope. They want to know what level of risk is involved when lending you money, and you should seek to learn the same about a custom builder you are considering.

Quick story. When I was screening builders a few years ago, I came across one I had never heard of before. Their company name yielded no results when I ran it through Google (aside from the builder's own website). But I then I got creative and ran the owners name through search engines, in conjunction with the city they operated in. Long story short, I tied the owner of the new company to an old company with an extremely bad reputation (a history of unfinished projects, a lawsuit or two, etc.). It was basically the same builder with a new name.

This is just another example of a few bad apples spoiling the bunch. Most custom home builders are hardworking folks who take a lot of pride in the homes they create. Most builders will work hard to make you happy, and to address all of your concerns along the way. But a few "bad apples" should be avoided entirely, and you won't be able to do this unless you know what they called themselves in the past. It's a fair question to ask.

4. Can I speak to some of your past clients?

This is arguably the best way to learn about a particular builder's quality and service. Of course their brochures say how wonderful they are -- that's just marketing. But in order to get a more objective view of the builder and the homes they create, you'll have to speak to a few of their past clients.

Most reputable builders will have a list of references at the ready, and some will provide it before you even ask for it. This is a good sign! Other builders have a harder time coming up with the names of past clients. This could be a red flag, because it either means (A) the builder has no past clients or (B) they have no former clients who are happy with their home.

Conclusion

Choosing a custom home builder is an important step in the path to your dream home. When you consider the amount of money that's involved in the process, it only makes sense to ask plenty of questions and conduct thorough research. I hope this article has put you on the right track by giving you a list of questions to ask each custom builder before choosing one. Undoubtedly, these questions will lead to some of your own questions, and that's even better.