How to Choose a Home Builder

Select a Reputable Builder

  • Homeowners should begin their search for a reputable builder by discovering who is building in the area where they want to live. Below are several sources:
    1. Some of the best builders rely on referrals and do not advertise. Talk to friends, relatives and colleagues at work who have recently purchased a new home or had one built.
    2. Local chapters of the National Association of Home Builders can provide names of companies who are members. In the Hill Country area, click on our Member Directory and Search for Builders on this website.
    3. Area real estate agents that are familiar with new home construction can offer builders’ names and insights into quality and customer satisfaction.
  • To ensure a new home that provides lasting satisfaction and a positive building experience, select a professional builder who is known for quality construction and strong customer service.
    1. Most home builders are local business persons, and can only stay in business to the extent that their customers are satisfied. Make sure that they have a good reputation.
    2. Homeowners should look closely at each builder’s finished work and work in progress, including models, custom homes, and homes under construction.
    3. Meet with the builder, or the person who would be in charge of building your home, to learn more about the company and the homes they build. Are your questions answered clearly and completely? Remember that your relationship with the builder will continue through the warranty period, so choose someone with whom you will be comfortable for the long term.
    4. To determine how a company treats its customers, talk to previous buyers of the builders’ homes. Visit communities on weekends when people are more likely to be outside and ask several different people about their experience with the builder and how satisfied they are with their home.
    5. Many builders provide a manual that guides a buyer through the homebuilding and purchase process. This type of manual can familiarize you with the procedures that the builder follows in working with his/her clients and is often an indication of the builder’s commitment to customer satisfaction.
  • As part of the interview process, review the contract, warranty and warranty standards that the builder provides. Note the amount of detail provided. The same attention to detail usually flows through the construction of the home. Don’t hesitate to ask questions about any items that you don’t understand.

A Well-Written Contract

  • Disputes between parties often involve issues that their contracts do not adequately address, either because the parties did not consider these issues or because they failed to write them in the contract.
  • A well-written contract is a critical tool for reducing liability. It should:
    1. be a product of the parties’ negotiations
    2. describe in detail the rights and obligations of the parties
    3. fairly allocate the risks inherent in the project
  • A well-written contract helps prevent disputes from arising during construction because the parties have settled potentially troublesome matters such as the scope of work, the materials to be used, and the time and method of payment before the project begins.
  • Although a well-written contract requires communication between the parties, it is no substitute for ongoing communication between the buyer and builder during the project. This is another reason to select a builder from the start with whom you can communicate effectively.
  • Builders that are members of the Hill Country Home Builders Association can purchase well written and balanced contracts which fulfill all current legal requirements.

Limited Warranty and Warranty Standards

  • Many builders also include a limited warranty in their contract. Such a warranty can also help prevent disputes after construction is completed.
  • The warranty, like the contract, should clearly express the intent of the parties. The limited warranty describes the problems and remedies for which the builder will be responsible after completion of the project and the duration of the warranty. It also defines the mechanism for addressing disputes.
  • If a builder warrants workmanship and materials, they should also provide some guideline or standard against which to judge the builder’s compliance.