Questions You Should Ask When Hiring a Builder

I get it; it’s intimidating thinking about starting a construction project. Some clients will push back their projects for many years due to the impending hurdles. Others move forward headstrong and hit financial and logistical barriers; some give up and buy a spec house. 

With Abrigo Home, we are bringing the concept that you can have your cake and eat it, too: with some help. Of course, none of this should be a mystery, so let’s break down some barriers and guide you through what should be STEP 1… Hiring a Builder! 

Why is hiring a builder important? If you have found Abrigo Home, you already have one foot in the door, but we need the builder. It can be an individual, who is willing to build what you want, or a straight-up developer. In any case, you need to trust this person with a lot of your money! 

Let’s start with how to find a builder: 

1. The most effective way to find a reputable builder is to ask people who they recommend. This could be a neighbor, friend, your realtor, the local lumber yard, or the planning-to-build department in your town. 

2. A google search will suffice but make sure you do a little more than a “cold call.” Most builders are busy and want to know you’ve done your research. Remember, this is an outright human relationship you will have with them, and that’s what they look for when considering new clients. 

Now, down to questions you should ask when hiring a builder. 

1. Timeline – Depending on where contractors are with their timeline, and if they are uncertain, listen to their reasons. Each building company runs its business differently, as some aim to move one crew in and out of sites or have multiple, which determines their profit margin. 

2. Budget – We know people don’t like giving a budget to their builder, but those days are gone. If you don’t share your budget with a potential builder, you waste a lot of people’s time. Realistically, it costs more than a homeowner could imagine, so it’s fair to be honest to ensure everyone is on the same page. However, if you think your budget is more than what the builder says, good for you.

Note: Do the math in the blog “How Much Does it Cost to Build a Home” just to double-check your numbers. 

3. Cost – Most builders now charge a Cost Plus rate instead of a Fixed Rate. With prices varying so much among vendors, the fixed rate has become almost impossible. Cost Plus means they will charge you what their cost is PLUS a markup (anything more than 20% is crazy high). Cost-Plus feels the fairest because everything is disclosed. 

4. Structure – What is the structure of their company? For example, do they sling a hammer, does he have crews (if so, how many), or does he sub-contract everything?

5. Subs – How are their subs marked up, and who are they? This is primarily the HVAC, electrician, and plumber because these will become long-term relationships for you. Again, look at the reviews to see if they’re good companies. 

Two other aspects to consider: 

1. The interview process – How did they communicate, and how responsive were they? 

2. Your gut – Did you like them personally and professionally? This is an essential part of the process because, ironically, everyone should be at the same price in the end, so listen to your gut. 

I realize this is a very stressful process, but we are confident you can do it. Once you find the right fit, we have a team! Many people are stronger than one, and it can/should be a strong working relationship to get you in your home, settled, and happy.