Article
November 01, 2006
Choosing your builder
Some helpful advice from the experts
THE LOCAL EXPERTS The local experts have some advice for those embarking on a new-home purchase:
Dennis Little, president of the Alberta New Home Warranty Program (ANHWP), says the length of time you will spend working with a builder – as long as 24 months, when the post-possession warranty visits are figured in – is reason enough to weigh your choice with the seriousness it deserves.
“I guess the issue with choosing a builder is what characteristics you are interested in. Some people choose a builder because they like the plan they build but that is just the beginning,” says Little, adding, “that’s really just part of the equation.”
Little says, while most builders do require a certain professional level of “technical competence,” not all construction professionals are created equal or share a buyer’s philosophy about the often lengthy process.
“You are buying two products – a home and a relationship. Every builder has its own personality, just like people do, and that’s important to remember when choosing one, after choosing the block and street you want to live on.”
Asking questions is a crucial part of the process to determine what role both buyer and builder will play along the way. And that means considering all the players who make up your prospective builder’s team.
“How are they going to handle the contracts? How knowledgeable are they about the contract, and will I be handed off to someone along the way or work with the sales person the entire time? These are questions that need to be asked,” he says.
The age old “get it in writing” rule applies better to buying or crafting a new address than perhaps any other venture, due to the size of the investment and the importance and personal nature of the purchase. Any mistakes made or expectations not met will literally hit a person where he or she lives and have the potential to permanently leave a bad taste.
Grasping the keys of a new home is not the end of a relationship with your builder. In fact, many in the industry will agree this to be just the beginning. A builder’s approach to service after taking possession is a crucial factor to consider, and it’s never a bad method of action to ask as many questions of your builder about this process prior to signing anything or handing over any cash.
Who handles the service or warranty issues after a home is yours is a good question to ask, as is the number of visits from a warranty professional that can be expected.
“It’s really about asking a series of questions. How well are you going to guide me through the process? (Builders) build and go through the process all the time, but (as a new-home purchaser), how often do I do it?” says Little.
While a certain amount of making the right choice boils down to personalities and expectations meshing, technical indicators are also key to consider in the builder shopping process, say the experts.
Checking to see if the builder is a member of professional organizations which make them accountable and require a certain level of building standards and ethics for members is also a wise place to start in the buying process, advises Little.
A warranty program, such as the Alberta New Home Warranty Program or the National Home Warranty Program, requires its members to adhere to a code of ethics, while protecting a homebuying investment long after crossing the threshold to your new digs.
Whether a potential construction professional holds Master Builder certification – and how many in the company are considered Master Builders – is certainly within a buyer’s right to inquire, as is if a the builder participates in the ANHWP’s Customer’s Choice awards.
“If they do, ask if they are willing to share the results,” says Little of the third-party survey which rates builders on their level of service to customers throughout the building process.
Little also suggests would-be homeowners get a copy of the ANHWP’s From Purchase to Possession, which is available online at http://www.anhwp.com. In addition to the importance of developing a good buyer-builder relationship, the publication offers advice on the people and steps involved from the point of looking to the construction process and post-possession.
The boom in Calgary and area has meant companies are expanding at a rapid rate to accommodate the need for housing, and has also has created the need to ask new questions not pertinent just a few years ago, says Little. How many homes a builder does in a year, or plans to do this year versus the last, as well as what changes this has meant for the company – in particular, how many extra staff were added – are important things to learn up front.
“If he is honest with you, and they have doubled their volume, it’s OK to ask how they have coped with it and if they have expanded their organization,” says Little.
The number of designers, the service team’s workload, average length of time to possession, quality of homes at possession, and how many homes have been sold but not started are valid indicators of how the process will likely be should a buyer decide to work with that builder, he says.
“There’s no doubt the process of building in about managing a series of challenges to conclusion. At the end you have gone through a problem-solving process, and if you understand up front that you are going to have problems that’s one part. It’s how well the builder handles these problems and whether you both walk away with respect that matters,” says Little.
Asking questions is not the sole responsibility of a buyer when it comes to the builder-buyer relationship, says Leanne Dohy, Director of Communications and Public Affairs for the Calgary Region Homebuilders Association (CRHBA). Builders and their representatives are also bound by this obligation, she says.
“Expect them to be asking you a lot of questions as well, such as the size of home and features you are looking from. They should be taking you through a showhome. A good builder is going to want to know exactly what you want in a home,” says Dohy.
Part of the process is to know expectations of a buyer in the mix. “If you need to choose a paint colour or tile by a certain date, for example, you need to know this.”
Checking to see if a would-be builder belongs to the CRHBA, as well as getting a list of references of customers who have built with them, are both good places to start in the task of choosing who’ll craft your next abode, she suggests.
Taking the time to breathe is also a good idea. Feeling pressured, especially by a builder or their sales rep, may be a red flag, says Dohy. “Don’t be rushed. This is the biggest purchase people will make in their lifetime, and if you are feeling like you’re being rushed, step back. It just may be you are not ready.”
While not so much a consideration in Calgary, where many builders do belong to the CRHBA and warranty programs, and take the business of building seriously, be wary handing over your homebuying cash to someone who crafts houses “as a part-time gig,” warns Dohy.
Knowing as much as possible going in to a home purchase is the best advice for any potential buyer, whether they have never bought or build new digs every year. And that includes checking to see if a builder belongs to the CRHBA.
“As part of membership, builders take part in networking and passing on information on changing trends in building codes. We are not a regulated body, but there is a level of living up to a standard that’s implicit, and builders pay to be members and subscribe to a code of ethics,” says Dohy.
Checking out who stacked up tops in the CRHBA’s annual SAM (Sales and Marketing) Awards are also a good place to start for the new home shopper. “It shows who is setting the standards, and it’s judged by their peers so that means a lot – peer pressure is terrific for keeping builders aware of what the guy up the street is doing,” Dohy explains.
She echoes Little’s advice on the importance of asking questions, and suggests would-be buyers visit the CRHBA’s website (http://www.crhba.com) for a printable list of things to ask.
“Sometimes you don’t realize what’s important to ask right away. But the more detail you go into, the better off you will be. It just doesn’t get any more important than this.” NL