Building a new home is one of the largest investments most people will make in a lifetime.
Selecting the professionals who work on those homes — from builders to lenders — will be some of the most important decisions they’ll ever make.
"Before homeowners turn a large sum of money over to build what is basically their dream, they need to do significant research to understand the process and investigate individuals to make sure they’re people they can work with," says Brown County Home Builders Association executive officer Mari McAllister-Charles.
Much of what goes into the decision-making process is tangible, such as pricing, references, years of experience, credentials and process-related issues. But homeowners will also want to pay attention to factors that might seem a bit more touchy-feely, such as communication style, flexibility, organization skills and personality fit, say industry experts.
That’s because the quality of the relationship between homeowner and builder matters, particularly when working together on the project of a lifetime, says Valley Home Builders Association executive vice president Christine Shaefer.
Whether it’s the builder or the interior designer, homeowners should strive for a level of comfort in those relationships, she says.
"These are people you’re going to be working with for months, and there will be a lot of communication back and forth," she says. "So one of biggest suggestions I can make is to select people you are comfortable with in the communication process from the start, someone you have a good give-and-take with."
Fortunately, she says, there’s no shortage in the region of qualified builders and artisans from which to choose.
The search for a builder
One of the greatest challenges in a region rich with talented builders is narrowing the search to three or four contenders.
Paul DeLeers of DeLeers Construction Inc. suggests homeowners begin by defining and maintaining realistic expectations, particularly when it comes to budget and timelines. Homeowners should enter the selection process with a realistic budget that reflects affordability, and they should communicate it while interviewing prospective builders, he says.
"When potential customers explain what they’re looking for and what they are expecting to spend, it not only gives them a chance to see if we’re a good fit, but it allows us to make sure we can provide what they’re looking for," he says.
Homeowners can begin researching builders, interior designers and landscapers by attending programs sponsored by the area’s home builders associations. The most frequented programs include tours of newly constructed homes, such as the Valley Home Builders’ Parade of Homes and the Brown County Home Builders’ Showcase of New Homes. During these tours, homeowners can chat with various builders while touring examples of their work.
"This is the chance to observe quality of workmanship, witness builders’ creativity and experience what they do in their own environment," says McAllister-Charles. "Often the builders will bring pictures of other homes they’ve produced."
Don’t assume, however, that the builder only builds luxury homes or a certain style, just because of the home featured on the tour.
"Any of our builders can build any size home to any price point," says McAllister-Charles.
Exposition-style home shows also provide opportunities for homeowners to interview builders and other professionals, see examples of their products and gather information. Typically homeowners will narrow their list down based on the samples they’ve seen and the discussions they’ve had, Shaefer says.
Once that list is narrowed to two to three contractors, formally interviewing the selected contractors is a good idea, DeLeers says.
This is the chance to ask basic questions, including how long the company has been in business, how many homes they’ve built, whether they’ve the acquired the necessary Wisconsin Department of Commerce credentials, if they’re adequately insured and whether they can provide references. It’s also important to ask about warranties, the process for handling change orders and details related to contracts, Shaefer says.
Face-to-face interviews create a level of trust between the homeowner and contractor, DeLeers says.
"If you can’t trust your builder, you should not be working with them," he says. "Every project runs into unexpected challenges, which can be stressful. When there’s trust, both sides know a positive resolution will happen."
When it’s time to put the project out to bid, select just three to four companies; any more than that can become cumbersome, Shaefer says. Carefully review the details of the bid and what’s included in the cost break downs, paying close attention to the value of allowances, the process for managing change orders, when payments to the builder will be made and whether they’ll be supplying you with lien waivers from subcontractors.
The sooner, the better
At the same time homebuyers are considering builders they should also be shopping around for other professionals they want on the job. That includes lenders, interior designers and landscapers. Home builder association directories include lists and contact information for a variety of subcontractors, designers and financiers.
Many of these businesses are available at home expos, along with their product samples and photos of completed work.
Ideally, interior designers and architects are brought on board during the earliest stages of the home planning process, DeLeers says. Doing so helps alleviate confusion á
and stress down the road.
Bringing a landscape architect into the process early also is a good idea, particularly in the case of high-end luxury homes, says Luke Schmalz, owner of Schmalz Custom Landscaping & Garden Center Inc. A landscape designer can develop solutions to grading challenges, and provide input related to the positioning of the home as it pertains to wind, sun and other issues that affect outdoor living spaces.
For example, Schmalz two years ago was able to help a builder who was placing a home on land with significant grade changes. The home was originally designed with six steps from the garage into the house and two sets of steps within the home. Schmalz was able to help the builder develop a grading plan that reduced the number of steps in the garage to two and eliminated the steps in the home.
"The biggest mistake people can make in an upscale home is that they have the home built and then they call in the landscaper," says Schmalz. "Picking a good landscape architect from the beginning can save thousands of dollars in the end on these higher end homes."
Schmalz suggests selecting landscapers and interior designers in much the same way as selecting builders. Interview them: Ask about years of experience, type of jobs completed and references, he said. Find someone with whom you can develop a good relationship.
Visiting your lender right away
Determining whether to bring in a landscape architect or interior designer is often a matter of budget. Few home projects can be completed without financing, and the scope of the project will be determined by how much can be afforded. That’s why it’s critical that one of the first things homeowners do is select a lender, Shaefer says.
"Get those financial ducks in a row before starting the design process, so you don’t get your hopes up that you’ll get a certain type of home when you can only afford another type of home," she says.
Tom Zellner, vice president–retail management at Nicolet National Bank, suggests identifying the lender before any other process begins. Builders will want to know that the homeowner is already prequalified with a bank. The homeowner should know whether they can afford the monthly payments on the home.
Like the relationship with your builder, the one with your lender should be built on trust and respect, he says. When choosing a lender, look deeper than the interest rates being quoted on home construction loans. Find out the value of closing costs and whether points are being paid to buy down the rate, he says.
"When working with a good lender, there should be no surprises at closing," he says
During the construction process, there will be frequent communication between the lender and homeowner, so the relationship should be a comfortable one, Zellmer says. The lender should be made aware of cost overruns and change orders so there are no surprises in the final cost of the project.
Talk with lenders and find one that approaches the process as something more than a business transaction, Zellner says. They should be able to demonstrate an interest in providing a full range of financial services that go beyond the home mortgage.
"The home construction process will be an ongoing process, so you want a lender who is interested in building a relationship built on trust," he says. "It’s no different than having a good family physician or an attorney. You wanted a banker you can trust to be working for your best interests."
