Non traditional custom build opportunity - how would you proceed?

8 years ago

last modified: 8 years ago

A builder has a lot that I like, and he has permits to build a 3000 sq ft house that I mostly like. He’s not established with a fancy website but he’s built some houses in the neighborhood that are well built but plain and mostly spec. He’s willing to let me bring In an architect to customize or redraw plans, and to get new permits as required. He’s also willing to let me choose finishes, etc. I’ve looked at other tear downs in the neighborhood and spoken with 5-6 builders to get a sense of what it’d take for me to do a semi custom home on my own, and I’d likely pay more and wait longer if I went on my own.

He’d have me sign a contract, and put down 25k earnest money. I’m thinking I should be ok if I get a lawyer and architects’ help, and have everything detailed out. But this builder also seems a little sloppy, his other house in the neighborhood had things that needed to be redone bc they were too small or too big (the shower flooring for ex needed to be redone). I’m also a little anxious bc this doesn’t seem like a normal way to do business but looking at the numbers I think it makes sense. He’s got the construction loan, and he’s already got a lot and permits.

Am I ok to move forward with the right legal and architectural advice? What else should I consider?

Featured Answer

cpartist

8 years ago

But this builder also seems a little sloppy, his other house in the neighborhood had things that needed to be redone bc they were too small or too big (the shower flooring for ex needed to be redone).

Red Flag!

Sort by:Oldest

Comments (6)

Summer
8 years ago
Following....I'm also considering this as one of my options...interested to hear what people think.
PRO
Virgil Carter Fine Art
8 years ago
Well...\
1. Have you ever designed and built a "custom" home before?
2. What do you think the project budget will be--construction cost, contingency, permits, professional fees, costs to close--everything together? Do you have a good sense of the project schedule?
3. Will you be financing the construction and permanent mortgage? Have you talked to lenders? What will you do if the house doesn't appraise for at least the loan amount?
4. If you use an architect to design a house, or modify the house for which he already has a permit, will you have to submit for a new building permit and other necessary approvals?
5. What sort of construction contract are you discussing? A fixed price; a time and material; a cost plus; or something else? Do you understand the differences among these contracts? Do you understand how risk management is handled differently in these contracts? What will you do to eliminate all allowances? What will be the terms and conditions for change orders? Will you be able to visit the site and give directions to the superintendent?
6. "...a little sloppy..."; "...I'm a little anxious..." Have you talked to his past clients? Do you know how long he's been in business? Have you checked the BBB?
Good luck on your project.
Related Professionals
Muncie Architects & Building Designers · Leominster Architects & Building Designers · Huron Architects & Building Designers · Casper Architects & Building Designers · Augusta Design-Build Firms · Madison Design-Build Firms · Hays Design-Build Firms · Natchitoches Design-Build Firms · Columbus Design-Build Firms · Barnstable Design-Build Firms · North Adams Design-Build Firms · Augusta Design-Build Firms · Charleston Home Builders · Lawrence Home Builders · Willmar Home Builders
PRO
User
8 years ago
I would not be comfortable with a non established builder with a track record of poor quality control. Especially since choosing to alter items may take things well out of his comfort zone. And he already appears to be out of his comfort zone from your description.

Lots of contractors think they have what it takes to be builders. Most don't. They lack enough general knowledge, and they lack enough ability to cost out things on a larger scale to actually make money doing it. That's when you get things like poor tile jobs, because they hired the cheapest guy around rather than someone who would do good work with no callbacks. Callbacks eat up every bit of a contractor's profit. The smart builder has learned who may cost a little more, but do the job right with no callbacks.
PRO
Anglophilia
8 years ago
He's a little sloppy and you're actually considering using him for a custom home build? What are you thinking!!!!
User
8 years ago
last modified: 8 years ago
If you noticed things in one of his other builds that looked sloppy or concerned you, I can tell you they will be magnified one hundredfold with your own build. You will notice every detail (both minor and major) and it will drive you crazy and these things have the potential to really cause the builder/homeowner relationship to quickly deteriorate. You must remember...it’s not just about the numbers!