Choosing a home builder for your new dream house
 When you are planning to have a new home constructed, choosing a builder is the most important decision you will make. The builder not only has the responsibility for the largest investment you may ever make, but also has a direct impact on your family’s future comfort and happiness.
For a happy and productive home building experience, you must be able to communicate clearly with your builder so that he understands what you want and you understand what he is doing for you. You must also have confidence in the reputation and ability of your builder to deliver the home of your dreams.
Envy Homes always recommends soliciting 3 bids before choosing a builder. In our experience, no two builders create bids alike. We have reviewed numerous contracts from other builders and are sometimes shocked by what is left out. Due to the variation in contracts, they can sometimes be difficult to evaluate without missing something. Below are some items that every agreement should include. These are items we have found to be left out in other contracts. For a complete list please contact our office. We can also provide you with a Contract Guideline Form for easier comparison.
Does Each Contract/Estimate Include:
• Finished Driveway: Be sure to compare the materials for the driveway that the builder intends to use. We have found some contractors will only put down a base, just enough to get their supply trucks in and out. This leaves you with having to provide finish materials in order to have an acceptable driveway. Also, we have found some builders do not include the driveway at all, or only an approach. Be sure to specify what you want, and make sure it is included in the contract price.
• Utilities: Does the builder provide an allowance to cover the electrical/natural gas utilities? This fee will vary depending on the length the utility lines need to run. Also, these costs are considerably higher during winter construction months. In addition, be sure you are not being left with the overwhelming paperwork and responsibility of applying for the utility installation.
• Septic/Well: Is the septic and/or well costs included in your estimate if you are building in a rural area? We have found that urban builders who try to build in rural areas tend to leave this out. Did the builder look at your perc test, septic permit or visit your vacant land to give you sufficient funds for your field, or is he pulling a number out of the air? Although no builder can give you a set cost for you septic/well, he should be able to estimate an adequate allowance. If this is not included, you are looking at a very substantial amount- sometimes in excess of $10,000. Be sure he has included costs to cover an engineered septic field if necessary. In addition, if you are basing your decision off of a cost per square foot calculation, be sure all builders are including this in the equation.
• Concrete: Be sure each builder is providing you with the same amount of concrete. Some may not include an approach or sidewalk. If you wish to have one or both, make sure all of the builders provide you with a contract that includes the same amount.
• Allowances: Builders are going to give you allowances for certain items in your home. For example, countertops are typically an allowance item. Unless you go to a builder before the contract is signed with the exact countertop brand, line and color, the builder will be unable to pinpoint a price. Even if you tell a builder you would like granite countertops, there is a significant difference between every color and line of granite. By creating an allowance, the builder gives you money to work with allowing you to make the decision further on in the building process. However, you must compare the allowances of each builder. If one builder gives you $2,000 for your countertops and another builder gives you $8,000, make sure there is a $6,000 difference in the overall contract price. Remember that if you choose an item that is under your allowance amount you will receive a refund. Ask us for a contract guideline form for easier calculation of the differences. For any allowance item, be sure the builder will extend his discounts to you.
• Timeline: Be sure to consider the different expected timelines each builder promises. One builder may have a lower contract price, but how much will you pay in interest on your loan before he finishes the job?
To help decide if a builder is the one you want to construct your new home, experts suggest asking these questions:
(We will email you a convenient form with space for note taking if you send an email to ChoosingABuilder@envyhomes.com.)
Are you an ENERGY STAR builder?
Many builders claim they build energy efficient homes- but can they prove it? We can! Many claim to employ energy efficient techniques and building products, but do not live up to the ENERGY STAR requirements. Can the builder prove his homes are energy efficient through third-party verification and testing processes, ensuring your new home meets the EPA’s strict guidelines for energy efficiency? These practices cost the builder approximately $5,000-$7,000 in addition to the costs of a standard home. Find out more about Envy Homes partnership with ENERGY STAR
Can you build Green?
Envy homes does build "Green" homes. Majority of the builders do not understand what goes into building a complete green home so it is important if your are looking for this type of home that you pick the right builder that can build it. If you are looking for Green Built homes please see this link.
Do you implement new technologies/techniques when building your homes?
Building materials and techniques are constantly improving. By using these techniques when building your home you will increase the overall quality and energy efficiency of your home. With features such as geothermal heating, structured wiring and radiant floor heating, you can save money over time while improving the quality of your home.
Are you licensed in the State of Michigan?
Your builder should be licensed by the State of Michigan. This requires a grueling examination plus evidence of past experience and expertise in the field he is building in. The state requires the builder to renew this license on a regular basis. He must provide the state with current financial information, insurance certificates, etc. Do not contract with any builder who is not licensed.
Who owns the company? Who holds the license?
You should also make sure that the principal of the company is the license holder for the company. The license is the glue that holds the builder's firm together and the builder does not want to risk that license. From time to time a building firm will use an employee as a license holder. The problem with this is, should a problem occur, your recourse is with the license holder who may not be an owner of the company. You should ask to see the license for the company and be absolutely sure that the principal is the license holder and not an employee. Do not take this for granted!
Are you a custom home builder, or have you only built speculative homes?
While most builders are capable of constructing a speculative home,
a custom builder must provide a higher level of quality and craftsmanship. Is this builder the right match? [read more]
Are you a member of the local professional builders associations?
As a general rule, builders who are involved with a builder's organization keep abreast of consumer trends and preferences. They know about relevant legislation and regulations. They are more comfortable with new technology and get good ideas from their builder colleagues.
Can you provide references?
A reputable builder has previous clients to offer as references. The buyer can call them and ask how they like living in their house. Ask if they would recommend the builder to a friend.
What else have you built?
Go to see other homes the builder has built. How do they look? If you see that the owner is home, you should ask if they like their home.
May I see a house under construction?
Take a look at the job site. A professional builder will have a well-organized operation, with tools and materials stored neatly, rubbish picked up regularly and people working efficiently.
How long have you been in business?
The builder should have an established business presence in the community. How long has the company been in business? Longevity usually suggests financial stability. Does he have an office you can visit or does he operate out of a pick-up truck?
How can I contact you if I have a problem?
A creditable builder will have a staffed office, plus a pager or cellular phone. You want to be able to reach the builder quickly and easily – during any time of day and especially at critical times. If the only number a builder has is his cell phone, you should be concerned.
Do you offer a Homeowner's Warranty?
Builders should always provide a Homeowner's Warranty on all newly constructed houses. The warranty protects a buyer from defects in workmanship and unexpected repairs to their new house. If so, what kind and for how long? What is covered under the warranty? What is
not covered under warranty?
Do you have insurance?
Your builder must be insured! It protects you from being sued if someone he hires gets hurt while working on your property. He should have liability and workers compensation.
(We will email you a convenient form with space for note taking if you send an email to ChoosingABuilder@envyhomes.com.)
To assist you in your financing needs, we recommend these local companies.
21 Reasons to build with Envy Homes |
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