No, not that kind of builder…
I’m surprised how many of my clients will just take my word for the credibility of someone, and never spend any time checking out their credentials to see if they really are going to be the right builder for them. Here they are, about to make the biggest investment of their entire lives, and they are willing to take my word after only knowing me a short time. That’s a lot of responsibility, and our reputation could be on the line. Thankfully, I’ve known a lot of great builders, and it is rare that there has been a problem, but there are always exceptions. So, now when I’m asked the big question, I take a little different approach. Instead of just giving a list of names of folks that could build their house, I try to steer them in the direction of doing a bit of their own due diligence.
Some time back we realized that a more systematic approach to the design process was needed, and as a result we have created a Design Workbook which is given to each client when we begin working with them. We have included in the Workbook several chapters that address the many issues and concerns that they will be facing as they go through the design and construction process. The chapter “Builder Selection” was written specifically to help our clients to investigate and make an intelligent decision when selecting their builder.
Here are some of the things that we recommend they do:
Get recommendations from several different sources - Great recommendations can come from your friends and neighbors that have recently built a house, real estate brokers in the area that you will be building, bankers that finance home building (are there any left?), building product suppliers, the local home builders association, just for a start.
Narrow down the list - After asking several sources, you will have several names, some of which will have been referred by more than one person. Move them to the top and make a short list of 4 to 6 builders.
Interview the builders on your short list - Make an appointment to meet with each builder and discuss a few things, like . . .
- How long have you been building custom homes?
- How many homes do you build each year that are similar in size and/or quality to what our’s will be?
- Are you licensed?
- Are you insured? How much? With whom?
- Are you a member of the local home builders association? Are you a member of BBB?
- Explain your process for completion of my home – including timing.
- How do you structure your contract . . . do you prefer a fixed price agreement or cost-plus or some other type contract? Why?
- Do you offer a warranty? Describe what is covered and for how long.
- Do you have a web site?
- Do you have other employees?
- Who will actually be supervising the construction of our home?
- Get the addresses of at least 3 recently built homes and ask if they will arrange for you to talk with the homeowners
Check out their story - Go take a look at the homes they have built and look closely to the craftsmanship and attention to detail. Ask some more questions from the homeowners, like . . .
- How was communication with the builder?
- Were you pleased with the quality of work?
- Were you satisfied with the way the builder conducted business?
- Was your house completed on time?
- Was it completed within budget?
- Have you had any call-backs? How were they handled?
- Would you use the builder again without hesitation?
Walk a house that they are currently building - If you don’t know what to look for, take your architect along, or a home inspector. Look at how well the “hidden” items that will later be covered up are constructed. Talk to the subcontractors there and ask about the builder . . .
- How long have you worked with the builder?
- Have you had any problems or concerns that haven’t been resolved?
- Have you been treated with respect and integrity?
- Are you paid on a timely basis?
- Would you hire him to build your house?
Do an internet search - These days, if anyone has a problem with their builder, it is probably described in full on the internet. Angie’s List, Kudzu, as well as a slew of other sites are great references – for both good and bad stories. Or just Google their company name and the word “problem” and see what comes up. You (and they) might be surprised.
By this time, you will have weeded out the ones you don’t feel good about, and be down to a couple of builders. Now it is time for some real soul-searching and discussions with the builder. Narrowing it down to one builder at this point is going to be all about Compatibility, Communication, and Integrity. Trust is the Key. If you don’t trust him, the whole process will be a stressful nightmare, always wondering what he is doing now to rip you off. On the other hand, trusting that your builder is always looking out for you and treating you with integrity will go a long way to making the process enjoyable and rewarding.
Yeah, it looks like a lot of work, and not too many clients do a very good job, but this kind of systematic approach can really ease the anxiety of the homeowner. I just keep reminding them . . . this is perhaps the largest investment that you will ever make, and the health and welfare of your family, as well as the possible return on your investment in the future is at stake.
So, if our client was checking you out, how would you do? I’d love to hear your comments on this, or any suggestions that you have that we’ve left out. Post a comment or give me a ring if you want to talk. Even better, we’d love to get you on our list of recommended builders if you meet our high standards. If you think you qualify, let me know and we’d be happy to make a referral.
What do you think?
Dale Peek
President – Peek Design Group

Kudos Dale! Great Blog… I strive to be the type of builder that you try to get your customers to find.
It would be a dream if other professionals in this industry took the time to create such a great study guide to help educate their clients for potential success. That is worth its weight in gold!
Looking forward to someday doing business!
Keep the good articles coming, i enjoy reading them.
Vincent Longo – President- Longo Homes Inc.
Vincent – thanks for the kudos.
You sound like exactly the kind of builder that we would be proud to refer a client to.
Let me know if you’d like to get a Design Workbook for your use – a great tool to get your potential customers excited about working with you (and us, of course)!
Enjoyed reading about you and your family on your website. Looks like you’ve done some great projects. Happy Birthday to Miss Olivia Grace in a few weeks!
Dale
Perhaps I become cynical in this age but perhaps we should ask the client for their references.
Do you have the budget and means to build the home you wish, rather than the home you are presenting to me today. Rather than hold us all hostage to your blowing the budget and wanting us all to kick back.
Will you respect my business and contractors with prompt payment, or will I be expected to pitch in and extend you credit with our time and labor. This includes cutting side deals for extra work and insubordination.
Will you rely on my expertise or challenge me with late night e-mails on the ill informed opinion of friend or neighbor.
Will you seek to take credit for my work by informing others that it is only because of your efforts that the project has succeeded. Despite the fact one of us has 30 years of experience, and the other one calls the joists “rafters” when talking about the house!
What builders need most is to be respected as professional and to be paid as such. Let us push to make collections easier and more equitable, rather than having to write off thousands of dollars for each project. It has become part of the culture to feel that the builder’s fee is a negotiable source of found money.
Michael – excellent points. It is equally as important for the builder to qualify every potential customer. That level of trust must go both ways!
Dale
Too Funny Dale!
Love the body “Builder”.
I think we’ve all been burned by a bad referral before. Even on my end of the transaction (buyers agent) I am careful who I refer my clients to. The systematic approach to qualifying a builder is a great tool. Hope you don’t mind if I ‘borrow’ this for my clients too.
Carey
Carey – Borrow away. Always glad to help anyone in the industry take another step toward better communication, better projects, and more success.
Let me know if we can help you further.
Dale
How does a builder get a copy of your Design Workbook? Sounds like a great tool for our custom clients.
One other thing you should have your clients look for when touring a job site under construction is job site cleanliness and safety. Left unattended a construction site can be an ugly and dangerous place.
Thanks for all you do.
Jeremy D
Jeremy – the Design Workbook has been a great tool for us as well as several builders that we work with to help educate our potential clients about the homebuilding process as well as show that there really can be a systematic approach to the design process.
We can also “customize” the Workbook for you to use in your office when talking to potential customers. It is another way to show that you are striving to be the best, and a talking point for the customer which will help distinguish you from the competition as they work to make a decision as to who they will choose to build their new home.
Give us a call and we can discuss how this tool can potentially open more doors for you!
Dale