What Makes For a Great Builder?

Purchasing a new home is likely the largest investment many of us will ever make, with long-lasting implications. The building process is a balancing act – coordinating dozens of trades, suppliers and the installation of hundreds of individual components all working together to form the ecosystem that makes up a new home. Choosing the right builder is not something that should be taken lightly, as who builds your home will have a material impact on your ownership experience.

If you’re lucky, you have a family member or trusted friend who has had a positive experience with a builder who also happens to be building in the area you wish you to live. If not, conducting your own research will have to suffice - but what should you be looking for? 

Bob Finnigan, COO of Housing at Heathwood Homes suggests the different between an average builder and a great builder comes down to attitude and the way they view their customers. “A great builder realizes that a happy customer is your absolute best sales tool. Regardless of the type of home they purchase, you must strive to meet or exceed the homeowner’s expectations.”  For example, Heathwood Homes does an inspection of the home prior to the homeowner walkthrough. “We ensure every possible effort has been made for the home to be as close to perfect as we can reasonably achieve, before the homeowner even sees it.”

That is great advice, but how does one research attitude? Start with the visible attributes that reflect attitude. A referral program indicates the builder relies on word of mouth as part of their sales process, which is generally the most important aspect of their business. A strong social media presence indicates a forward-thinking company that thrives on interacting with their customers in a public forum. Industry awards, particularly those that measure customer satisfaction are a strong sign of an organization that prioritizes their homeowner’s buying experience. Lastly, a builder who highlights their customer service standards is holding themselves to a higher benchmark than those who don’t. All of these initiatives are customer-focused and can paint a clear picture of how an organization treat their customers.

 “It’s a simple premise, but if you design your sales, marketing, construction and service programs around keeping the homeowner informed and educated, you set a clear expectation that you must execute to satisfy the homeowner,” says Finnigan. “In the end, it comes down to transparency.”

New Homes Need TLC Too

With brand-new products installed in the home and a good warranty to protect you, owning a new home is as close to hassle free living as you can get. But generally lost in the buzz of buying new construction is the thought of keeping it in “like new” condition. Understanding how to operate, maintain and service your home and the components within is critical in ensuring you don’t violate the terms of your new home warranty, retain your home’s resale value, and keep the cost of ownership low.

Ontario law requires builders and developers to provide a new home warranty through TARION Warranty Corporation. This warranty is designed to ensure your home was built to code and protects you within a defined period of time from any issues that may arise. The warranty is, however, conditional on an owner operating and maintaining the home as instructed by the builder and product manufacturers. Because understanding how and when to do the work is essential to successful homeownership, by law you will receive a maintenance guide from your builder. Additionally, your builder’s homeowner manual should contain all of the installed products manufacturer’s documents for your home. It is a good idea to request a sample homeowner manual from your potential builder prior to purchasing and get it in writing that it will be provided.

Like selling a car, the condition and service history of your home has a material impact on the asking price, and unlike factors such as market conditions or interest rates, you have complete control over this. Take advantage of the new technology tools that have been introduced in recent years that help you track the upkeep of your home. Many new homes now come standard with a web-based portal that stores all of your home’s product information and care instructions, while tracking your ongoing maintenance. Never lost or misplaced, this digital home resource is fully transferable if you decide to sell. 

When you own your home, it is impossible not to incur costs over time. However, extending the life of big ticket items such as appliances, flooring and countertops can save you money and delay the need for large scale renovations. Smaller maintenance tasks like replacing the caulking around windows and doors will keep your energy costs low. It is important to remember that most components in your home have the ability to affect other products or even the building structure if they malfunction, making even the smallest maintenance task important.

The experience you have when buying new construction depends on your understanding of the process; from your contract to purchase and all the way through the first ten years of ownership. Expecting to put as much “TLC” into your new home as needed will ensure you get the most out of your buying experience.

Use a Specialized Realtor When Buying New Construction

Buying new construction is very different from buying resale, and it’s easy to get caught up in the excitement when visiting the Presentation Centre of a new development. To save time, energy and most importantly, money, use the services of a realtor specializing in new construction. You have nothing to lose, and a whole lot to gain.

Like choosing a builder, choosing a realtor is not something that should be taken lightly. Expertise and some good advice will save you a lot of headaches and potentially a few costly surprises down the road. Start with recommendations from friends and family who have had experience with buying new construction, as they likely would have dealt with a realtor in the process. If you don’t have any personal referrals, try using free internet resources such as SundayBell (www.sundaybell.com) which allows you to search for agents who have specific areas of expertise and ask questions anonymously. This comparison will allow you to choose the best agent for your needs in a “no pressure” environment.

After you have selected a qualified realtor, narrow down your desired location and the various communities or projects being built. Your realtor will have insight into any new projects being planned for that area. “If you’re looking for condos, keep in mind that developers must sell a percentage of the units before they can get financed to start construction,” says Andrew La Fleur, a Toronto based Realtor. “This can mean early purchase pricing and other incentives prior to the official launch.”

The single biggest disadvantage you will likely experience when buying new construction is buying a contract as opposed to a complete structure. “Pre-construction contracts can be tricky, and you need to ensure everything discussed with the sales people is written into your contract prior to signing,” says La Fleur. “Things like actual ceiling height and finishes detailed  in your contract versus what is in the show suite are common points of contention, but those are relatively minor compared to undefined closing costs and restrictions on future assignment rights.” Having clarity in regards to your contract will have a direct impact on your buying experience.  An experienced realtor will negotiate for you and ensure there are no surprises when it is time to take possession of your new home. 

Just like buying a resale home, the realtor’s commission is paid by the seller, so there is literally nothing to lose from having a realtor work on your behalf. Keep in mind that the staff you speak with in the Presentation Center are paid by and represent the builder, so having a realtor working for you ensures your best interests are being looked after.