Home Builders

What do I look for when hiring a contractor?

Always review the inspection and building permit records for former homes built by the contractor. Every new home or major remodeling project requires government inspection and approval to ensure the work is safe and up to code. Not only does this protect the public but it is a great way to evaluate potential building contractors.

First, request a list of homes or projects built by the contractor then go down to the government office in charge of inspections and permits. Permits are part of the public record and a worker will be happy to help you research a few homes. Pay special attention to failed inspections or permit violations. Although it is not uncommon to find a few minor issues, repeat violations or extensive failures could be a potential warning sign of trouble. At a minimum the delays may cost you additional time and money while building your new home or at worst, indicate a problem with the quality of work. It is also a great way to find reputable contractors with established reputations rather than fly by night contractors who are new to the game and unlikely to be there in the future should problems arise.

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How do I select a building contractor and negotiate the contract?

The search for a qualified building contractor can seem like a long drawn out process but it is important to take your time, check references and verify that the builder is capable of handling the job. When it comes to selecting a building contractor it is essential to understand some basic terms and conditions before signing a contract. Be sure to consult with your legal adviser if you have any questions or concerns.

Understand liability and limits to liability. The building contractor should be licensed, bonded and insured. Be sure the contract stipulates that all workers and sub-contractors are also covered by workers compensation insurance, liability and/or other required insurance coverage.

Detail, as specifically as possible, when work is to begin and be completed. There should be various milestones for both time and cost.

Review the contract for a complete list of all work, items and expectations. If it isn't in writing then it doesn't exist no matter what may have been promised during negotiations. If the salesman promised an upgraded appliance package but the contract doesn't mention it, then the time to correct the error is before signing the contract.

Decide upon the compensation method. Typical compensation includes either a fixed fee or percentage of the total cost of the project. If using a total cost compensation program, it is a good idea to include a "not to exceed" clause to make sure the project doesn't run severely over budget.

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How can I simplify my building contractor search?

Finding a building contractor is now easier than ever thanks to nationwide real estate magazines and online listings. Use these simple steps to begin searching for a building contractor:

1. Visit www.HomesandLand.com to order a real estate listing magazine for your desired area. In every issue of Homes and Land there is a new home section where you can see newly built homes for sale, or contact real estate agents that specialize in that type of home or location.

2. Once you see homes that match your budget, style and location, call the agent or builder to order more information about floor plans, cost per square foot, optional amenities and other features.

3. After reviewing the printed materials schedule a time to visit homes in person. Compare the features, quality and rates between at least three building contractors.

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What should I ask potential building contractors?

There are few things more satisfying than having a home built exactly to your specifications but the choice of contractor can make or break the entire experience. Use this handy checklist when evaluating potential building contractors to find the right contractor for your project.

1. How long has the contractor been in business? You can verify this with your local business license department and state licensing agency.

2. What type of home and location does the contractor specialize in? Visit formerly built homes to examine the quality of work.

3. Is the contractor a member of any organizations? Chamber of Commerce?

4. Obtain a BBB (Better Business Bureau) Report and D&B (Dunn and Bradstreet Report) if available.

5. Does the contractor have any outstanding lawsuits or debt obligations? You can pay a small fee to have the local clerk of court perform a search for any prior legal obligations.

6. Is the contractor fully licensed and insured? Verify with your state agency.

7. Has the contractor worked under any other name or in any other state?

8. Can the contractor provide references that I can speak to about previous work? Call and visit former references.

9. What are the required terms? Warranty? Deposit and Escrow requirements? Have your attorney review these if you have any questions or concerns.

10. How much work will the contractor sub-contract out?

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How do I find a good contractor?

Begin by deciding where you'll build and what type of home you want. Although most contractors will build a home for you if requested, it's always a good idea to find contractors that specialize in the location, price range and type of construction you desire. Not only will they have more experience and expertise in building the home but it will likely save you money due to bulk purchasing power and reduced time of construction.

Use these quick questions when interviewing prospective contractors for your next home:

1. What location do you specialize in? This is particularly important if you intend to build on beach or mountain property or in areas with special requirements such as Florida storm building codes.

2. What price range do you specialize in? Luxury homes or modest price starter homes? Find a qualified contractor that fits your price range.

3. What material do you specialize in? For example brick, wood frame or concrete block. Find a building contractor who has experience building with the materials you prefer.

4. If you aren't familiar with local building contractors, then use the www.homesandland.com search tool to speak to several real estate agents in your area to find out about new home builders and qualified contractors. Experienced agents have the added benefit of expertise when it comes to which homes resell the best later!

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How can I find a licensed contractor fast?

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Sometimes you need a licensed contractor for a quick remodeling project. One fast way to conduct a licensed contractor search is to contact a local real estate agent that deals with property management. Property managers have extensive knowledge of who to call on short notice, who does the best work at the most affordable price and who can handle those out of the ordinary jobs.

To locate a real estate professional that deals with property management issues use the real estate agent search tool at www.HomesandLand.com, then simply ask for a referral to a reputable licensed contractor in your area. Most are more than happy to pass along business to their contractors. Be sure to tell the contractor who provided their contact information and verify the contractor just like you would when evaluating any service provider

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