Never Choose the Lowest Price
When you're setting out to create your dream home, what should you look for in a builder? Some people prioritize proven experience, top-quality designs, and excellent service, while others simply go for the cheapest quote. But beware—choosing the lowest bidder can have serious consequences.
In this industry, the builder who provides the lowest quote often leaves out critical items from the contract or is so desperate for cash flow that they cut their margin to zero to pay off existing creditors using your money. And what do you think happens next?
If you think a builder who makes mistakes on their quote or has cash flow issues isn't your problem, think again. When you sign a contract with these types of builders, the only thing on their mind is, "I need to get through this job as quickly as possible and sign a decent contract where I can earn some money!"
And that’s a real problem if you hope to get a quality home as well as the lowest price.
The Real Risks of the Lowest Price
It’s a safe bet that when a builder is desperate for cash, they'll agree to anything you ask for just to get you to sign a building contract. They'll even drop their price just to get your signature. This is a massive red flag.
Residential construction is high-risk and low-margin for builders, so if a builder agrees to reduce their price, it usually means one of two things: either they were taking you for a ride in the first place to see if they could get anything extra out of you, or they simply have no idea about their numbers and are focused on getting some cash into their bank account to satisfy creditors.
If you sign a contract with a builder like this, you will end up with substandard work, delays, and, in some cases, an unfinished home.
How to Find the Right Builder
To avoid these pitfalls, invest some time into research to make sure you find the RIGHT builder. When you invest your time in research, you know the right questions to ask, and you become what we call in the industry, an ‘EVOLVED’ client. Every builder wants to deal with an evolved client.
So, how do you become an ‘evolved’ client?
Look for a Specialist
The first thing to do when looking for builders in your area is to find a specialist. Avoid the jack-of-all-trades. If they say they do new homes, renovations, extensions, commercial, and industrial work, move on! The builder that claims they can do everything is a master of nothing, and their lack of experience will show when it comes to your particular style of home.
If you’re building a custom-designed home, look for a builder that only does custom-designed homes. If you need a renovation, create a list of builders who solely focus on renovations. These specialists have much more experience and know exactly what to expect.
Check Their Online Presence
The second thing to look for is whether they have an interactive website with details and examples of their previous projects. You want a builder to be proud of their past projects, showing off what they can provide you.
Test Their Responsiveness
Next, ask them questions using different channels to see how well they respond. Send an email one week, make a phone call the next, and arrange a site meeting to discuss your project. The key things to look out for are if they turn up on time, answer their phone, and return missed calls. Do they respond to emails when they say they will? The service you get through the sales process is a good indication of the service you will receive once a contract has been signed.
Ask Plenty of Questions
Another important factor is the advice they are prepared to offer before you become a client. This is a great opportunity to ask your builder plenty of questions. Not only do you get more useful tips and advice, but if they are trying to hide something, it will quickly become apparent once you start asking questions. A professional builder will freely offer advice regarding design and specifications and will happily connect you with their suppliers. Use this opportunity to speak to suppliers and ask them about the building company. It’s what they don’t say that is just as important as what they do say!
Visit Their Current Jobs
Finally, ask them about their build process and ask to see similar jobs currently in progress. When you visit the site, it should be buzzing with activity. If it’s not, then questions need to be asked. The best question you can ask any builder is, “Can I see the schedule for that job?” If the blood drains from his face and he starts making excuses, then RUN A MILE! This is a sure sign that this builder operates without a plan. And in this industry, a failure to plan is a plan to fail.
Conclusion
Before you set out to design your new dream home, make sure you are speaking to the right builders. Don’t choose a builder just because they have the lowest price. Take your time, do your research, and become an evolved client to ensure your dream home becomes a reality.
Click on the link below to discover everything you need to know to ensure you engage a professional builder without making any costly mistakes.