5 Common Mistakes To Avoid When Hiring A Builder

If building a home was easy, everyone would do it. Unfortunately, it's not. In fact, the process is fraught with potential problems that can often make building a home frustrating.



Fortunately, area builders have identified five of the biggest problems homeowners make when deciding to build their own residences. Smart consumers will read these problems and avoid them.



1. They Don't Do Their Research When Choosing A Builder



Choosing a builder is a big decision. After all, the builder is responsible for what may be the biggest financial investment you ever make. Yet some people put more effort into choosing a restaurant than they do into finding the right builder.



"I've run into people who never do call the references they get from potential builders," said Larry Nielsen, estimator, sales manager and designer with Chesterton-based Krause Construction. "That's a big mistake that people make."



Other times, consumers forget to ask potential builders the right questions. For instance, Nielsen says, consumers should always find out how long a builder has been in business, how many homes he or she builds a year, how long it takes them to complete a project and whether he or she is insured. Consumers should then ask to see homes that potential builders have either completed or are in the process of building. If they want to be truly thorough, they should knock on the doors of these homes and ask to speak to their owners to find out how satisfied they are with the quality of construction.



"Picking the right builder is so important," said Alan Sommers, owner of Chesterton's Sommers Construction. "Choosing the right builder heads off a lot of problems right at the start. Once you start with that premise, everything else falls into place."



2. They Think Of Only One Thing: Price



Dennis Henderlong, owner of Generation Homes in Valparaiso, doesn't think twice when asked about the biggest mistakes consumers make when building homes:



"They all say they'll interview builders to find the best one, but then they go solely based on the bottom line," he said. "They don't ask about quality and service, but instead go with a builder based solely on that builder's price. They don't realize that the lowest price is not always the best choice."



The cheapest builders may quote the lowest prices for a reason: Their services aren't worthy of a higher price. Maybe they don't use quality materials. Maybe their workers aren't experienced. Maybe they haven't taken the time to get the proper licenses and insurance.



"Price is important, but it's not the most important thing," said Nielsen. "If one person is 20 to 30 percent lower than everyone else, there's something wrong. If you play the numbers game, you will always find someone out there to do it cheaper. But remember, if it sounds too good to be true, it probably is."



3. They Don't Check With Their Builder's Suppliers



How can you tell if your builder is honest? How can you tell if your builder has the financial resources to complete your project?



Talk to the people that work with them.



Ray Kuhrts, division manager with national builder Lux-Klinker Homes, Inc., who works out of the company's Hobart office, recommends that consumers ask all potential builders for a list of their suppliers. This list should include the plumber the builder contracts with, the builder's electrical contractor, the concrete company with whom the builder works and anyone else with whom the builder deals. Consumers should then call these people to make sure their builder pays them on time.



If the builder they are considering is consistently behind on his or her payments, then Kuhrts recommends you look for someone else.



"If they're not paying their bills on time, that's a red flag," Kuhrts said. "That tells me that person is not a financially stable builder. I don't want this person building my house. You may move in and find that there is a lien against your house."



4. They're Not Organized



Building a house involves countless smaller projects and decisions: choosing cabinets, installing flooring, adding electrical outlets and so many other tiny details. It's easy for homeowners to get confused or to lose track of the progress of their project.



That's why Sommers recommends that owners request a written schedule from their builders. This schedule should clearly state a construction time line. It should also provide buyers with information on when decisions have to be made.



"There are a lot of decisions to be made," Sommers said. "You have to pick floor covering, cabinets and on and on. At some point, you need to know when these decisions have to be made. You have to keep on schedule. If those decisions aren't made on time, it could slow down a project."



5. They Work With Someone They Don't Get Along With



You should always work with a builder that you like. This may sound obvious, but it often isn't. Some homeowners will go with builders because of price or because they were recommended to them. They ignore the fact that they don't like that particular builder.



It's important to be on friendly terms with your builder, though. Remember, you'll spending lots of hours with this person as your home slowly comes together. You'll also be working with this person on some big financial decisions. If you can't stand your builder, the whole process will become more difficult.



"You want to create an alliance with someone you trust and communicate well with," said Jane Kubol, marketing director and project manager for Valparaiso's Coolman & Coolman, a local builder. "Remember, this is a huge investment we're talking about."