Who is your home building contractor? It pays to know before you sign the contract. Home builders and contractors vary quite a bit. Some are huge nationwide corporations, who staff each location with employees. Other home builders are local families who have built homes in your community for generations. Still others are very tiny companies who build homes one at a time made to order. There are other ways to categorize home builders. There are affordable home builders, budget home builders, green home builders, quality home builders, custom home builders and luxury home builders. With all these different types of home builders, how do you know which home building contractor should build your house?
Home Building Contractor Types
Home Building Contractor Types: National Home Builders
There are about 10 to 20 companies who account for about 70 percent of all home building in the United States. Upon entering a leading home builder’s office, you will be meeting with a salesman. It is important to realize that any major decisions about your construction will be made at a corporate office in another state. There seems to be a consensus among those who have bought a home from these companies that you should bring your own Realtor or perhaps your own attorney with you to this type of office.
Home Building Contractor Types: Local Homebuilder
A typical experience with a local homebuilder may not include a salesman. Most local building contractors will meet with you one on one, to discuss your new home. Some do employ a salesman, but the homebuilder also works out of this office and is available if you need to talk with him. Your local homebuilder will be responsible for supervising your construction, and handling your escrow account.
Home Building Contractor Types: Small Contractors and Spec House Builders
Spec home builders are usually very small companies, or individuals who build a house now and then for profit. These sorts of companies are usually good at what they do, but don’t generally have a big office, or a lot of overhead. If you choose a very small builder, you should verify their insurance, and if it is insufficient, you can purchase insurance for your own home.
Home Building Contractor Types: Affordable and Budget Contractors
These types of companies take pride in being able to keep costs down. They tend to build small homes in a few basic styles. It is important to verify that your home will be durable and sturdy. Expect low end but reliable fixtures, and inexpensive floor coverings and finishes.
Home Building Contractor Types: Quality Home builders
It is common for quality home builders to have a very old company, and generations of home builders. A quality home builder always has a well known reputation among Realtors, and loan officers. Quality home builders generally offer a great warranty, often provided by a company who specializes in issuing superior warranties to the best of home builders only. Most quality home builders work hard to maintain their strong local reputations. They usually have extensive experience and take pride in their work.
Home Building Contractor Types: Custom Home Builders
Custom home builders confer with architects to build a unique home just for you, based on your rough plans and sketches. A custom home is a bit more expensive, but you get a truly unique home based entirely on your own needs and tastes. Custom home builders are very similar to both quality home builders and luxury home builders in most ways.
Home Building Contractor Types: Luxury Home Builders
Though many home builders claim the title very few homes live up to the tough criteria of a true luxury home. Luxury home builders are very critical of each other’s work, and very specific about what constitutes a true luxury home. A luxury home is a unique, one of a kind home, easily distinguishable from other homes and of real architectural significance. A luxury home should have a certain artistic flair to the décor and a unique stairway. It must be built on a beautiful scenic lot in a fabulous location, near vacation like venues and attractions. It must afford an uncommon degree of luxury and comfort. Most luxury home builders will point out that there is nothing in the description of a luxury home which implies either size or price.
Whatever the size of your homebuilding company, and no matter what your price range, you should research and investigate your home builder. Ask local Realtors, inspectors and loan officers to recommend home builders, and check on line for reviews and complaints against the company. Visit open houses of homes built by your builder. For more information on how to choose a home building contractor, download our 98 page free book, and read the other articles on this site.