7 Important Things to Consider When Selecting a Home Builder

I’ll never forget the excitement the hubster and I felt from building and buying our first home. We never thought we’d become homeowners and it was so exciting seeing our home built from the ground up. Looking back, I realize that we made many rookie mistakes when it came to our first build.

Our First Home

Now that we’re building again. We’re determined NOT to make the same mistakes. Here are a few things to ask when selecting a builder.

Research and Compare Builders

This probably sounds insane, but we did minimal research when selecting our builder. At the time, I had a coworker who was going through the process. She explained how how her mortgage would be less than her rent and her earnest money deposit (the amount you put down to secure your lot) was only $1,000. Plus, she received great incentives from her builder like free blinds, $5,000 towards closing costs, and a free fridge. She suggested we look into it. The hubster and I went to look at the model home, spoke with the sales agent, and eventually came back with her realtor after she recommended him.

We should’ve taken our time to research additional builders in the neighborhood to compare what their standard features were. We compared our builder to 1 other builder in the neighborhood although there were 5 in that area at the time. Ultimately, we liked the house and floor plan we selected, but we should’ve done our research to see what standard options competitors were offering.

For example, our previous builder includes ceiling fans in every bedroom and our new builder doesn’t. On the flip side, we have way more standard options with our new builder.

Make Sure Your Elevation Isn’t “All Over the Neighborhood”

We chose to build one of the most popular floor plans in our neighborhood. At the time, we didn’t think to ask which lots the builder planned on building our floor plan. We were one of the first homes that our builder completed when we closed, so we really had no idea what our completed phase would look like. After a few months went by, I saw our home pop up everywhere! If I stepped outside, I could see our exact model to the left and right in the same color scheme. I knew our floor plan was popular, but I had no idea it would be identical to so many other homes. If you’re building, be sure to ask your builder where they plan on building your floor plan.

Standing In Our Kitchen

Ask About Changes

Once you sign the dotted line to secure your lot, the builder reaches out to schedule an appointment for the design center. During this appointment, you choose all your selections for the home including paint colors, flooring, lighting, upgrades, etc. We didn’t select too many options on our first home and kept things pretty basic. A few weeks after our appointment, we realized that we should’ve changed our interior paint color. Unfortunately, our builder didn’t allow us to make any cosmetic changes to the house after leaving the design center. After moving in, we slowly repainted a majority of the rooms in the house but it was so expensive! Be sure to ask your builder if they allow cosmetic changes and if there’s a cost. Also inquire about the cut off time for making changes.

Ask Plenty of Questions Before Selecting a Lot

Thankfully, the lot next to our first home was the developer’s property so we didn’t have a home next to us. Before selecting a lot, be sure to ask your builder what the developer’s plans are for your neighborhood. This is a crucial question to ask if the developer has land near your lot (the builder will show you blueprints). Also ask if there are any lot premiums associated with the lot you choose. Keep in mind that lot premiums can be negotiated. It’s important to have a good realtor who can handle potential negotiations for you. I won’t get too much into this now, but I’ll spill the deets on this after we close!

The developer’s land next to our house

If you have any concerns about a potential lot bring them up immediately. Most builders will also show you blueprints, but take time out to visit the lot.

Do Your Research On the Community

Do you have your eye on a particular floor plan? Is your potential builder building it in another neighborhood? I highly recommend checking out the neighborhood to get an idea of how your home could look. Also, don’t build simply based on the model, but research the neighborhood. Consider things like the amenities, lot size, schools, traffic, etc.

Ask About Incentives

5K Towards Closing Costs? A Free Fridge? $10,000 towards the design center? Free wood floors? These are examples of some incentives that a builder can provide a potential home buyer. Due to COVID-19 many builders are offering extra incentives to entice buyers. Be sure to inquire if your builder is offering any incentives and see if you can negotiate.

Overall, our building process has been much smoother this time around. We had a horrible customer service experience with our first build (the sales agent was a total jerk) and we’ve come into the situation with better knowledge. Our realtor is extremely attentive and it helps that she has a great relationship with our new builder.

From what I’ve been told, the builder we used on our first home has made significant changes regarding packaging for upgrades. Based on my experience, I wouldn’t build with them again but I know everyone’s experience is different. Our old builder builds homes in our new neighborhood and we’ve met a few new neighbors that have homes with them. Overall, most of the homeowners seem satisfied so I hope my experience was a one-off.

Calculate The Cost

After selecting a lot, a builder will require you to put down an earnest money deposit. This is the deposit you pay that secures your lot and also goes toward your closing costs. Be sure to ask how much this deposit is at is ranges between builders. Our earnest money deposit for our first home was $1,000 however the cost is significantly higher for our current builder. Be sure to read your contract carefully as these deposits can be non-refundable.

I hope this post saves you time and money if you plan on building a home. If you have any specific questions about my experience feel free to message me or drop them below.