Top 3 most common mistakes people make when selecting their home builder
Today we’ll be talking about the Top 3 most common mistakes people make when selecting their home builder… Let’s get started!
#1) Placing too much weight on the price of a build…
– Now, though budgeting is a very large factor when shopping for someone to build your home… it is even more important to know exactly what their pricing includes as well as the quality of work which will be provided.
– If builders are hundreds of thousands difference in price, you’ll want to know why. Do they include the survey and architectural drawings, do they include the garage in the price, do they pay for the permitting, what type of allowances are you looking at for the interior finishings.
– Don’t just pick the cheaper price just because they’re cheaper and turn a blind eye to everything else as this is one of the reasons why overcharges are the biggest issue in the construction industry. Now, I’m not trying to say that a cheaper price won’t go well, you’ll just want to make sure that you’re very well informed before you make your decision.
– Please be sure to have a close look at the contracts, and compare various builder allowances to make sure you’re covered from every angle. In a previous video, I’ve provided information on how to effectively shop for a builder, so if you’d like to check that out, I’ve attached a link in the description below.
#2) Placing too much trust in a referral!
Now, referrals are an amazing and a great way to start a relationship, but as there are so many different types of clients as well as builders, just because someone worked well with that builder, doesn’t mean that you will as well. Additionally, often referrals come from friends who haven’t actually worked with the builder directly, or the referral is a “family friend” who has done this before.
Regardless of where these referrals are coming from, or if you find them online with great reviews, you’ll always want to take the time to do your research and see if they’re a great match for your project.
– Please make sure you have a clear and thorough contract outlining everything that’s included throughout the entire process, along with all the details regarding payment schedules and timelines.
– Though this sounds like something that should be pretty common sense, you see far too often when people “trust” each other, they simply sign a piece of paper stating the total amount of the cost to build their home with no other details.
– Please don’t do that… to maintain a healthy and trusting relationship with your builder, it becomes even more important to have all the details clear and transparent on the contract. By doing that, there will be no confusion on what was included or any extras when the time comes.
Additionally, if you’re not comfortable with contracts or need assistance with having it reviewed, I’d suggest having it looked over by a Lawyer or a Notary.
1) Know what you’re getting within the price quoted! Though pricing is a large factor when selecting your builder, making sure you’re covered through everything required through the build will help create a much more stress free process.
2) Don’t place too much trust in a referral! Receiving referrals are a great way to start a relationship, but be just as thorough with your research to ensure you’re a good match
3) Clear and concise contract! Making sure you have a clear and concise contract will help to ensure you know exactly what you’re getting throughout the build. Remember, don’t be afraid to have it checked out by a lawyer or notary if you’re unsure.
Thank you so much for joining me today, I hope you found this information helpful! If you’d like to see more of these videos, please like, share and subscribe or if you had a specific question you’d like to see covered, please comment below.
Once again, my name is Kenny Wong from PHW Homes Inc and Happy Building!