There are some important questions that we should explore when we make the decision to purchase a home. This is the second part of a 2-part series contributed by Robert (Bob) Fusari, Sr., President and co-owner of Real Estate Service of Connecticut (RESC). Bob has been involved in residential construction and development for over 52 years, building custom single family homes, subdivisions, condominiums and apartments numbering in the thousands. He has built individual communities as small as 10 homes to communities over 3500 homes. Bob is actively involved in the Connecticut Home Builders Association, and was chosen builder of the year in 1995. He is a Director and currently Chairman of the Middlesex County Chamber of Commerce. We are pleased to present Bob's insights into how we can make a wise decisions when purchasing a home.
Part 2: HOW TO CHOOSE A BUILDER
DO YOU NEED AN ARCHITECT?
For most single family construction, you do not need an architect. There are a number of good home designers who are not licensed architects that specialize in cost-effective design. An experienced builder is a good source of design information and house plans. Whether an architect, designer, or builder, they should challenge your wishes and test your assumptions. How thoroughly you did your homework (see Part I) will have a direct effect on the final result of your house plan -- AND the only way you will get a handle on the final cost.
SHOPPING FOR A BUILDER
The first step is fairly simple when it comes time to shop for a builder - it is not different than shopping for any other big ticket item: Ask everyone you know (friends, relatives, co-workers) who they would recommend and why. Looking at newspaper ads, and signs at homes that are currently under construction will give you an idea of who is working in the community that you are considering. Most community officials will have a general knowledge of who is reputable - building inspectors, Chamber of Commerce, Home Builders Association, and the Better Business Bureau. Also, you can contact prior customers - ask if they would recommend the builder that they used, and why, or why not. (The Assessors Office at the local Town Hall will have information on title transfers, many times naming the builder and the new homeowner.)
When you have a list of prospective builder candidates, first check his experience, and ask how long he has been in business. Visit a current job site...what impression does it give? Does it look organized? Depending on the type of home construction you are considering, you should ask if your builder specializes...in custom homes, track homes, modular homes, etc. Is he a volume builder, and does he build only certain types of designs? Also consider the size of the builder's company - ask if he has the capacity to handle your job. It is good to ask who will be assigned to your new home to work on it -- you may wish to meet with that person, if it is not the builder himself. Ask how long it will take to build your new home; when will construction begin; what is the construction schedule; and when is the expected close date. Be sure to ask about your responsibilities in the process: when do you need to make selection decisions to keep construction on schedule?
Ask how much other work the builder is doing: someone who is busy is an indication of success, yet, conversely, he may be too busy to give personal attention to your new home construction. Lastly, and importantly, you must assess the builder's financial stability. Sometimes this is a hard question to answer, but it must be investigated. You may ask for bank contacts, attorneys, suppliers, and also check lawsuits, liens, etc. It is important to find out how the builder wants to get paid. Does he want progress payments, or an initial down payment, with the balance due upon completion?
PLANS, SPECIFICATIONS, CONTRACTS & CHANGE ORDERS
When working with your builder it is important to be very specific and complete about your wishes. Avoid "allowances" whenever possible. A builder may want to make allowances for anything from removal of ledge to kitchen appliances. While it is many times not possible to know how much ledge a builder may unearth (although a reasonable guesstimate is possible through testing), you can know and choose which appliances you want in the kitchen, for example.
Living in New England, we know lots about the beauty of rocks. However, we may not want a large boulder left on our front lawn. Know up front what happens with ledge, and any unearthed large boulders. Will the builder be charging so much per cubic yard of blasting, including off-site disposal if necessary? Also it is important to know about well-depth septic systems, and underground water conditions. If your builder is not assuming responsibility for all of these items, get a list of unit costs for each possible extra cost item.
Insist on a written change order procedure in your contract. Change orders should be as complete and specific as the original contract. It should address when you pay for extras and changes.
YOUR ROLE DURING CONSTRUCTION
Don't be afraid to inspect regularly, but don't be a pest. Deal only with your general contractor or builder. Do not address issues that should be discussed with the builder with the sub contractors (unless the builder directs you to do so). Ask questions when you are not sure of something, but avoid accusations. It is important on both sides to maintain a good working relationship with your builder and resolve differences promptly and in a professional manner. An attitude of distrust will lead to a strained relationship and less than expected results. For clarity and for the sake of the professional relationship, always put important matters in writing, particularly in the initial contract.
It is important to clarify the role of the Building Inspector. He is concerned with health, safety and code issues; he will not insure complete compliance with your plans and specifications. Therefore, do not expect the building inspector to be your personal watch dog.
WARRANTIES AND SERVICE
Insist that the Warranty and the Service Policy and Procedures be in writing. Read them and understand them before signing a contract. Ask the builder if he will have final inspection prior to closing or the last progress payment.
COMMUNICATION AND TRUST
In conclusion, keeping the lines of communication between you and your builder open in both directions adds much to insure a smooth construction process. Confirm all agreements in writing promptly. If you have done your homework thoroughly, you should be able to trust your builder to honor his commitment to you.
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