Homeowner Design Ideas
Bear in mind that most custom builders in the Eastern Carolinas are good builders. In general, when they continue to build homes year after year, they’re doing something right. In order to help you, the homebuilder, choose between the upper echelon custom builders, we have put together a few important things to consider.
1. Is he a local resident of the area in which you are desiring to build a home? If not, does he have an office in close proximity?
2. Is he a member of the Home Builders association? Is he recognized among his peers as a custom home builder?
3. Is he an established company, representing himself or the company he owns? The license holder needs to be the principal shareholder in the company. Every once in a while, some builders will use another’s license to build a home (for various reasons such as revocation of their license, suspension, or building a home they are not financially licensed to build). Should something happen, your only recourse will be with the license holder of the company, not the company you were contracted with. This does happen! Please do not assume this important cornerstone.
a. Ask to see the license to ensure that the person you are contracting with is a principal of the company.
4. He needs to be able to provide you with a list of at least 5 satisfactory references within the last 3 years. He should also feel comfortable enough for you to call these references for their recommendation.
5. The builder needs to have a current contractors license with the State of North Carolina, or the State of South Carolina. Do not ever do business with a builder who does not have this license. The licensing requirements for home building are strenuous, ensuring that the builder meets certain financial standards even before he can take the exam. Also, the general contractors licensing board from their respective states reviews the company’s financial strength, and is one of the factors in considering license renewal.
a. The exam requirements are such that there is an 80% failure rate among applicants taking the building exam.
6. Does the builder have a residential contractors license or a building license?
a. The State of North Carolina offers a building license that covers both residential and commercial construction. This is advantageous because of the strict licensing requirements and exam preparation.
b. Also, having a builders license allows exposure to commercial building methods and materials, of which are continuing to appear in high-end custom homes.
7. Call the Better Business Bureau and check any references they may have.
8. When comparing builders proposals, it is absolutely essential to compare apples to apples. Most often, the price difference is a reflection of the variation in materials used in construction. It is very easy in custom home building to substitute higher quality materials for cheaper products to lower the price.
a. Also, leaving out soil clauses, ceiling height, not to mention amenities, can affect the price considerably.
9. Regarding earlier consideration of who owns the company you are contracting with, it is important to check this. For instance, the company you are doing business with may be a joint venture, or an LLC. If so, you need to check the background of the company you are doing business with. It is not unheard of for a builder to build a house, and skip town to leave all warranties null and void.
10. Does the builder offer a warranty with his home? The industry standard is one year, “bumper to bumper”, with mechanical components being covered by their respective manufacturers, and a structural warranty that should cover you for at least 5 years.
a. Some builders offer a 2 year/10 year warranty that is not only covered by the builder, but an insurance underwriter as well. Should anything happen structural to your house, or if there is any dispute, you are covered by this special warranty that only select builders can qualify for.
b. This warranty covers you even if the builder goes out of business, goes bankrupt, etc. Since the average family will spend approximately 9 years in a home, it is important to cover the homeowner for at least that long.