Action Steps
The best contacts and resources to help you get it done

Find the right individual home builder for project success from start to finish

If you need a home built from an original architectural plan, you'll likely want to work with an individual home builder or residential home building company. Working with home builders on an individual basis means devoting more time to communication, but allows you to select the builder with the exact skills you are looking for and to express your needs clearly and effectively.

I recommend: Linwood has been in business for four decades and offers custom home building services. Their website features a handy "first steps" guide that leads you through the process of building. Schumacher Homes offers a handy photo tour and you can request a free DVD and guidebook to learn more about their custom built properties.

Seek out home building services to get multiple services from established companies

Large new home construction services and companies generally offer a wide variety of services, including title company services, that make building your property simple. These companies also often offer standardized services as well as pre-built homes with custom design options which can ensure a speedy and more affordable home construction experience.

I recommend: Centex is a very large residential home builder provider, ranking among the top three builders on FORTUNE’s “America’s Most Admired Companies” for nine years. The company builds new homes in 600 neighborhoods across 26 states. They also offer title services, financing, closing assistance and insurance for new homes. Pulte Homes is one of the largest home building companies in the US. In addition to building new homes in 26 states, they offer home warranties as well as financing.

Opt for a green custom home builder to attract today's buyers

Today, more and more people are concerned about money and the environment, and if you're in the business of selling homes, you want to be able to appeal to these buyers. One way to do that is to hire green builders who use environmentally-sound building materials and methods. Green builders can often save buyers money, can help save the environment and can often create homes that are safer and healthier for residents.

I recommend: The Star-Ledger offers a useful article about working with green custom home builders. The article details ways to ensure that builders make your new homes as energy-efficient as possible. Energy Star offers a useful guide outlining what a new home must have to meet the guidelines established by the U.S. Environmental Protection Agency for energy-efficiency. Share this information with your home builder before beginning the green building process.

Helpful advice for making the most of this Guide

• •  When you first start working with residential home builders, it's a good idea to establish preferred contact methods and a regular check-in time. Establishing these guidelines at once ensures that you have the green light to contact the builder regularly to get updates on your project and voice any concerns.

Action Steps
The best contacts and resources to help you get it done

Develop a winning bid

The goal of all residential home builders when bidding on a project is to get the job. An effective bid should start with your analysis of the building plans. Decide what the home should sell for, and then work backwards. Break each part of the home building process down. Determine how much you should spend on the foundation, kitchen and other components to reach the final price. Be sure to factor in your profit.Bidding in this way makes it easy to set aside some money for a high impact but low cost upgrade, such as crown molding in the living areas. It is often a small touch like this that will make the sell for you.

I recommend: Finding out what homes in the area are selling for. You can get some idea by visiting Multiple Listing Service, or MLS listing sites, but you can get a more accurate price by visiting your courthouse to see the recorded sales. Many communities allow online access to these records, contact the local county clerk's office to see if yours does.

Use technology to and track expenses

There are a variety of programs available that allow the custom home builder to manage building projects efficiently.

I recommend: Buildlinks is a web based tool that has a real time calendar, integrated email and documented storage, an online tool that allows home builders and owners to view and manage change orders and option packages as well as many other features. Ezhomebuild is a software program that permits cutting and pasting from spreadsheets, has the ability for the contractor to import price databases and generate reports. It also integrates with a variety of software, including Quickbooks and MS Outlook. The construction of new homes is a numbers game, and to remain profitable you must keep an eye on expenses.

Be the ideal home builder

New home builders often look upon their work as a way to pay the bills, but to stay in business during lean times word of mouth is everything. This may be the only home your client ever builds, and they will remember everything that went right, and everything that went wrong. Particularly in the case of custom home builders, the customer expects personal service, timely response to questions, and, above all, to feel that they got their money's worth.

I recommend: Starting with a basic checklist and customizing it to fit your business. The final step in new home construction is to walk through the home with your buyer and complete the checklist. This is also the time to ask some exit questions to assess their satisfaction with your performance. If they feel negative, it may be too late to change their mind, but use the criticism constructively.

Helpful advice for making the most of this Guide

• •  Start each bid from scratch. Do not depend on numbers or quantities from previous bids to come up with your numbers.
• •  Include more than price in your bid package. An attractively presented package, with photographs of your previous work, common upgrades and even a handwritten cover letter will make you stand out.
• •  The market share for custom home builders is tight , by projecting a professional image and managing the business side of your company effectively, you will be ahead of much of your competition.

Action Steps
The best contacts and resources to help you get it done

Select residential home builders that can cater to your specific needs

There are many different types of new home builders. Some work on individual homes on an as-needed basis, while some custom home builders work only in particular developments. Some builders are part of established companies that also employ engineers, architects and designers, while other builders offer semi-custom homes with a basic floor plan or design that they can alter somewhat to meet your needs.

I recommend: SinglePointe Real Estate offers a useful guide not only to finding the right new home builder, but also to negotiating with that contractor. ThinkGlink offers some useful tips from WGN-TV Show Notes for finding the right home builders.

Rely on home builders associations to find a qualified professional

Although many businesses assume that consumer organizations are for private individuals only, they are also a wonderful resource for companies that want to know how builders treat their customers. In addition to browsing building association websites for information pertaining to customer satisfaction, you may want to contact these organizations for current home builder licensing requirements in your area.

I recommend: Visit the National Association of Home Builders (NAHB) website to learn how to choose a builder and to get information about licensing and other requirements for new home builders in your area. Use the Ginnie Mae checklist to determine what features you are looking for in new home construction and what you might want to ask your new home builder before breaking ground.

Learn what builders offering residential home building do and how they can help you

Home builders can create the home that you desire - whether you are working from your own blueprints or from a floor plan approved by the building company. You can expect builders to keep you up-to-date on the construction schedule and to communicate with you about your needs and wants. However, it is also important that you listen to your builders, since they can inform you of certain problems with the plans, designs or lot where you are building.

I recommend: B4UBUILD.COM provides a useful guide to building a new home, which includes a sample schedule, sample contracts and even how-to videos. It's a great resource for understanding your responsibilities in the home building process and understanding home builders' responsibilites. Bridgegate Construction offers a step-by-step explanation of what to expect from building a new home; it provides a great description of what you can expect from home builders.

Helpful advice for making the most of this Guide

• •  Don't overlook the power of a simple search engine when considering a custom home builder. Type in the name of your builder or the name of the building company you are considering and run several searches, appending words such as 'complaint,' 'problem,' and scam to see whether other customers have had problems with the company.

Action Steps
The best contacts and resources to help you get it done

Allowances

When building a new home, there are many different choices that the home buyer needs to make, such as the types of wood used in cabinetry or accessories in the bathroom. There can be a wide range in costs for these types of things. When giving an estimate, the builder makes allowances for these items. This is an estimation of the costs. If the actual cost is less, the buyer gets a refund, but if the cost is more, the buyer must pay more.

I recommend: Learn more about allowances from the Metropolitan Builders Association.

Builder's risk insurance

Builder's risk insurance is a type of insurance that covers a home as it is being built. It helps protect the builder from any losses.

I recommend: The Allen Financial Insurance Group offers a builder's risk insurance policy and information on what it contains.

Building codes

Building codes are laws that cities and states make to ensure a minimum level of safety within a building. All home builders must make sure that their buildings are 'up to code,' which means that they must follow the rules when building.

I recommend: Reed Construction Data offers a building code reference page, which has links to building code laws by state.

Certificate of Occupancy

After the building company completes a project, the County Building Department will issue the Certificate of Occupancy, showing that the building has been inspected and that it is suitable for living.

I recommend: Learn more about a Certificate of Occupancy from the New York City Government.

Conditions, covenants, and restrictions (CC and Rs)

The conditions, covenants and restrictions, or CC and Rs, on a property make stipulation for how a particular property can be used, such as whether it is a residential or commercial property.

I recommend: RealEstateLawyers.com describes CC and Rs.

Seasonal Energy Efficiency Ratio (SEER)

The seasonal energy efficiency ratio (SEER) is a rating method for air conditioners. When building a home, builders should opt for a central air conditioner with a high SEER rating in order save the homeowner the most energy.

I recommend: Energy Star describes SEER ratings.