What to Consider When Choosing One of the Best Home Builders
When choosing a home builder, it’s important for people to do their research and understand what they need. Searching for “best home builders near me” can be a good start, but it shouldn’t be the only one taken before signing a contract with a home builder. The following are some of the most important factors to consider when choosing a company to build a new home.
Service Area
The first thing someone shopping for a home builder will want to do is look for a company that builds in the area they want to live in. Some companies will only work in certain areas or within specific development communities. Even companies with locations across the entire nation will often limit themselves to specific markets or communities. If the customer is looking to build outside of their preferred builder’s service area, they will need to look for an alternative builder to complete their project.
For home builders, a market would typically be a city and its surrounding area. A community would imply a specific area within a market, such as a development or subdivision.
Aspiring homeowners might first consider looking for areas they’d prefer to live in before choosing a home builder. For instance, many development communities will only allow two or three home builders to work in the community, so anyone who wants to live and build there has limited options to choose from.
Once the shopper knows where they want to live, it’s a good idea for them to visit the builder’s home center. These are essentially sales offices complete with all the different fixtures and finishes available to shop through to design a home. There, the shopper can get a better idea of the home builder’s style and options will work for their new home build.
Price Range
Homes come in all shapes, sizes, and price points. The price range is one of the most important factors to consider, as a shopper with an entry-level budget looking at a high-end home builder is a recipe for failure.
Customers will want to understand that there are essentially three price ranges: affordable, mid-market, and upscale. First-time home buyers might consider finding a home builder that works comfortably within the affordable range, or somewhere around $50 to $230 per square foot. For mid-market homes, shoppers can expect to pay between $100 to $400 per square foot. For upscale homes, home buyers could pay upward of $400 per square foot. It’s important for future homeowners to choose a builder who works within their budget so they don’t end up with a home they can’t afford to pay for.
Architectural Style
One of the biggest benefits of building a home is getting to choose the aesthetic that fits the homeowner’s style and tastes. For that reason, shoppers will want to consider the best builders that offer models with architectural styles to meet their preferences.
Home builders that work within certain communities typically offer a handful of designs or blueprints. It’s important that the homes in these communities match the others to make the development uniform and appealing. This is another reason a home buyer might consider finding a community that meets their tastes before settling on a home builder, since their floor plan options may be limited.
Custom vs. Production Homes
There are essentially two ways to go when building a new home, and they include hiring a custom home builder or going with a production-based company.
Custom home builders will typically work with the homeowner to create a one-off plan that meets their needs. This company will build on land purchased by the homeowner, and the homeowner can choose all the details that go into the home.
Production home builders have far fewer options. They’ll typically have a range of blueprints and designs to choose from, but customers are limited to those specific plans. Also, the companies may only build in communities, not on private land.
A production home build is typically faster and easier to start, as it starts with a basic set of plans that have already received approval. Custom home building requires the homeowner’s input on design, custom blueprints, and approval from local authorities before the project can break ground. This takes time, but the result can be the homeowner’s dream come true.
Energy Efficiency
Some home builders specialize in energy-efficient building, and this could be worth considering for shoppers who want to minimize their home’s carbon footprint. Special construction techniques like “green building” or using energy-efficient appliances and systems can make a significant difference in the homeowner’s energy bill and the home’s impact on the environment.
For homeowners who don’t know how efficient their homes are, there is always the HERS assessment system. HERS stands for Home Energy Rating System, and homeowners can hire a certified assessor to come to the home, test it, and assign it a score on the HERS scale. The HERS scale goes from 0 to 150; the lower the number, the more efficient the home. These tests take into account all exterior walls; floors over unconditioned spaces; ceilings and roofs; attics, foundations and crawl spaces; windows and doors; vents and ductwork; and HVAC and water heating systems.
Many of the best home builders’ completed projects come out far better than the average home on the HERS scale. This means that their homes are more efficient, and that could be an important factor for some shoppers, whether they are concerned about the environment or just want to save money on their energy bills.
Financing Options
Obviously, homeowners need to figure out how they’re going to pay to build their homes. Some home builders offer financing options through affiliate lenders, which makes it easier for prospective customers to get a loan for their homes. Other companies may require homeowners to secure financing from outside institutions. Each home builder has its own preferred methods. Shoppers will want to understand that many home builders will offer rebates or savings for going through their lender. This may make sense for some buyers, but in many cases, securing financing on their own may yield better rates which could save them money over the life of the loan. For example, a buyer might choose a construction-t0-permanent loan to help finance the building of their home and then turn their loan into a traditional mortgage once the build is complete. There are also other loan types for buyers who are financing a new home build; it’s recommended that buyers understand how construction loans work to determine whether this is the best option to help pay for their new home.
Consultations and Inspections
Regardless of whether the home is a production build or a custom project, there will be at least one consultation to get the ball rolling. During this pre-construction consultation, the customer will choose the floor plan and select the finishes. Any additions or tweaks to the design are typically discussed at this consultation.
As the project progresses, customers will have the option to schedule inspections with the builder. The buyer will show up on-site, walk through the project, and check that everything is going according to plan (literally). Different home builders will have policies about when and how often a customer can schedule these inspections, so it’s important for customers to ask those questions early in the process.
Warranties
Home builders have to warranty their work after the project is complete. Many choose to self-warranty the home, fixing any structural issues out of their own pocket that come up within a set period of time. Others may choose to use a third-party company to supply a home builder’s warranty.
In some cases, traditional home warranty companies won’t offer coverage until 2 or 3 years after the home’s construction. This means that any issues that arise within that initial window will need to be covered by the home builder regardless of whether they supplied builder’s risk insurance.
Customers should note that home builders’ warranties typically cover structural issues. Issues with appliances, mechanical systems, and other fixtures are typically covered by a mechanical or manufacturer’s warranty. Homeowners may also consider a new construction home warranty to help pay for any items that go wrong with the home that aren’t covered by the builder’s warranty or a product warranty.