If you're in the market for a new home, you should shop for your builder as carefully as you shop for your home.

Whether you are buying a condo, a townhouse, a house in a subdivision, or a custom built house, you want to know that you are buying a good quality home from a reputable builder.

Once you have thought about the type of house you want, where should you look for a builder? First, check with your local builders association to obtain a list of builders who construct homes in your area.

Look in the real estate section of your local newspaper for builders and projects. Looking through the ads and reading the articles can help you to learn which builders are active in your area, the types of homes they are building, and the prices you can expect to pay. Make a list of builders who build the type of home you're looking for in your price range.

Local real estate agents may also be able to help you in your search. Ask friends and relatives for recommendations. Ask about builders they have dealt with directly, or ask them for names of acquaintances who have recently had a good experience with a builder.

Do Your Homework

Once you have a list of builders, how can you find out about their reputations and the quality of their work? The best way to learn about builders is to visit homes they have built and talk with the owners.

Ask builders on your list for the addresses of their recently built homes and subdivisions. Builders may even be able to provide names of some home owners who would be willing to talk with you.

Drive by on a Saturday morning when home owners may be outside doing chores or errands. Introduce yourself and say you are considering buying a home from the builder who built their home. Talk to several owners, and try to get a random sample of opinions. The more people you talk with, the more accurate an impression of a builder you are likely to get. At the very least, drive by and see if the homes are visually appealing.

When you talk to builders and home owners, take along a notebook to record the information you find and your personal impressions about specific builders and homes. Doing so will help you to make comparisons later. Some questions you can ask people include: Are you happy with your home? If you had any problems, were they fixed promptly and properly? Would you buy another home from this builder?

Usually, people will tell you if they are pleased with their homes. And whether they are or not, they'll probably want to tell you why.

General Contractors
Some builders construct more than one type of home, but most specialize in a particular type, size or style. Large-volume production builders construct many homes in a year while small-volume production builders work on fewer projects.

Spec builders
Spec builders design and build individual homes to be sold during construction or upon completion. General contractors build preplanned homes while design/build contractors provide both design and construction services.

Most home buyers who want their own home individually built and designed select a builder who specializes in custom or semi-custom homes. These companies tend to be smaller in size and usually build far fewer homes than those that build production or tract homes. Most smaller building companies are operated by the owner, which means you'll be working with either him or her personally or a key employee. Occasionally, a custom or semi-custom home building company can become quite large. In that case, you may not receive as much personal attention from the company owner.

The choice of a builder may be the most important decision in the custom home-building process. Choosing a builder early in the process- ideally before you've settled on a site or design for your home–can set the stage for a successful home-building experience.

Why might you prefer to choose a builder early on? Builders say the process is so complex that most owners need professional guidance from the beginning to avoid mistakes in site selection, home design and written specifications.

Builders say your budget probably shouldn't be among the top criteria in selecting a builder. No builder can quote an accurate price for a custom or semi-custom home until he or she knows the type, style, finishes and features of the home, the site conditions and the type of contract you want to use for construction.

Rather than focusing on cost, you may well want to base your decision on the builder's competence, reputation, professionalism, warranty coverage and experience. Here are seven criteria to consider:

1.   Reputation
Look for an established builder with an extensive client list.

2.   Area of operations
Choose a builder who is familiar with the area where you want your home to be built. Local knowledge is important because residential construction is very regional in nature. An out-of-the-area builder might not be prepared to handle variations in local building codes, subcontracting practices, inclement weather patterns or other factors.

3.   Type of home
Select a builder who has extensive experience constructing homes in your price range and general design style.

4.   Compatibility
Building a home is a highly personal and emotional experience. That's why you'll want choose a builder with whom you'll feel comfortable.

5.   Warranty
The builder should be willing and able to offer you a comprehensive written warranty on your new home.

6.   Financial stability
Some builders run their businesses better than other builders do. Make sure the building company you select is financially viable.

7.   Financial strength
Success in the home-building business is earned by building a quality product at a fair price. A builder who is financially successful likely will still be in business during the warranty period for your new home. Further, successful builders are in the best position to contract for the services of top subcontractors and suppliers–the people who will actually build your home.

Beyond these factors, the most important consideration is the quality of the builder's homes. Cost is not a direct measure of quality. Rather, good quality is the merging of good design with appropriate products and materials that are installed with superior workmanship. The most expensive window might not look or perform any better than a substantially less expensive window. But improper installation of that window will diminish its quality, regardless of its cost. Generally, costly finishes and fixtures won't offset shoddy application or installation.

Some home buyers locate a builder through a real estate agent. Certainly, no group of people has better knowledge of the local real estate market than the real estate agents who work in that market on a daily basis. Whether an individual real estate agent is well-versed in home construction is another matter. Some agents are very savvy about builders and home construction while others aren't at all knowledgeable about local builders or the new home design and building process. Many real estate agents shy away from marketing and selling brand–new homes while others prosper in this specialty. If you decide to ask a real estate agent to help you select a builder, be sure to consult an agent who understands the realities of new home construction.

Look at new homes whenever you can. Home shows and open houses sponsored by builders are good opportunities to look at homes. Model homes and houses displayed in home shows are often furnished to give you ideas for using the space. You may also ask a builder to see unfurnished homes.

When examining a home, look at the quality of the construction features. Inspect the quality of the cabinetry, carpeting, trim work, and paint. Ask the builder or the builder's representative a lot of questions. Get as many specifics as possible. If you receive the answers verbally rather than in writing, take notes. Never hesitate to ask a question. What seems like an insignificant question might yield an important answer.

Always keep value in mind when shopping. Just because a home is less expensive than another does not mean it is a better value. Likewise, a more expensive home does not automatically assure higher quality.

Another important aspect of value is design quality. When you look at a home, determine whether will it suit your lifestyle. Is there enough living space? Are there enough bedrooms and bathrooms? What about storage space? Will you have room to accommodate special interests or hobbies—for example, a large kitchen if you enjoy cooking or a room for a home office or exercise room? Think about the amount of upkeep required both indoors and out. Consider also the location of the property. Is it convenient to transportation, shopping, schools or other places of interest to you?

Ask Questions About Service

One important criterion for selecting a builder is the warranty provided on the home. Most builders offer some form of written warranty. Many builders back their own warranties on workmanship and materials, typically for one year. Other builders offer warranties backed by an insurance company. Ask to see a copy of the builder's warranty. Although reading legal documents is tedious, read the warranty to understand what protection you will have. Don't wait to read it until after you move in and a problem arises. If you have any questions about the coverage, ask the builder.

Also, find out from each builder what kind of service you can expect after the sale. Typically, a builder makes two service calls during the first year after you move in to repair nonemergency problems covered by your warranty. The first call is usually 30 to 120 days after the move-in, and the second is around the eleventh month–right before any one year warranties on workmanship and materials expire. For emergencies, the builder should be able to send someone to your home right away.

Some other questions you might ask builders are:

• How long has the company been in business?
• Whom do you contact for customer service after the sale? Should requests be in writing?
• Who will be responsible for correcting problems with major appliances?
• Does the builder belong to the local builders association (affiliated with the National Association of Home Builders?)
• Does the builder use state-of-the-art energy features? Equipment, insulation, design, and landscaping can all affect a home's energy efficiency.
• A new home is one of the biggest and most important purchases you will make in your lifetime. By doing your homework, you will be able to shop for a home with a sense of confidence and the knowledge that will help you make the right decision.
• If you have additional questions about selecting a builder, the home builders association in your area can help you find the answers.

The typical house contains more than 3,000 different parts. These components must be assembled with skill to form the new product you will call home.

It would be unrealistic to expect your new home to be perfect. Even the best built homes are likely need a few corrections. Most problems are corrected routinely by the builder. However, if a non-routine problem should arise, you should follow certain procedures to correct the situation.

First, identify the exact nature of the problem. Then you should put it into writing and send it to the builder. Many builders require all complaints to be in writing and will respond to telephone complaints only in emergencies.

Use the following guidelines when you write your letter:

• Include your name, address, and home and work telephone numbers.
• Type your letter if possible. If not, use printing or handwriting that is easy to read.
• Keep your letter brief and to the point, but include all relevant details.
• State exactly what you want done and how soon you expect the problem to be resolved. Be reasonable.
• Include all relevant documents regarding the problem. Send copies, not originals.
• Keep a copy of the letter for your files.

Before you write your letter, familiarize yourself with your warranty coverage. If a problem develops after the warranty has expired, the builder is not required to fix it under the terms of the written warranty. Some items, such as appliances, may be covered by manufacturers' warranties and are not the responsibility of the builder.

Always go directly to the builder with your complaints. Do not send letters to lawyers, government agencies, home builders associations or any other third parties before you have given your builder a reasonable chance to correct the problem. Interference from outsiders may impede the handling of your complaint. Also, sending angry, sarcastic or threatening letters is not likely to expedite your case. Such letters usually do more harm than good.

Contact outsiders only if you have reached an impasse with your builder. Try to avoid legal proceedings. Lawsuits are expensive and time consuming and should be attempted only as a last resort.

In the event of an impasse, contact your local home builders association. If your builder is a member, the local association may have a system for examining and resolving construction complaints without going to court. The builders association may be able to bring both sides together to reach an agreement. However, keep in mind that a builders association does not have the legal authority to compel either side in a dispute to do anything.

Remember that most builders are seeking customer referrals and repeat buyers. They want you to be satisfied. If a problem develops, remain calm and approach your builder in a reasonable manner. By following the procedures described above, chances are that you will be able to resolve the problems.