How to know a builder is good builder for new construction?

[Hemal Adani]

Hello Folks, I was talking to few builders for new construction. I am not sure about the builder though as I am working for the first time. I have heard horror stories like construction price increase, project not completing on time, construction quality isn't good or equipments breaking down soon, etc. How do I know if I am working with good builder? I do perform home inspection before purchase. Anything else?

[Sarah Beilke]

Hi @Hemal Adani.  New construction can be stressful but also rewarding.  When you are speaking with a builder ask them about an "escalation clause" in their contract and if they have used in the past.  In many contracts this is what allows them to increase the price on you mid-project.  A good builder will not hesitate to explain that to you what it is and if they have had to use that clause in past contracts.  If you are building custom definitely get past customer references and drive by the homes and see if you can connect with the homeowners.  If you are looking at national tract builders like Dr. Horton and Lennar, drive the neighborhoods.  Especially with the tract builders where a lot of their labor is "in-house" the construction quality can really vary from neighborhood to neighborhood.  

If you are going custom my other recommendation would be to make sure you ask as many questions up front as possible to try and avoid any changes along the way.  I have found what many times sours the customer relationship and ends up costing both you and the builder time and money is when you try and make major changes mid-project.  

Hope this helps!