Selecting A New Home Builder
by Mark Salerno
When you buy a new home, you’re also buying the company or contractor that is building it. Your satisfaction - and the value of your investment - will depend on the experience, skills, and commitment of the builder.
That’s why choosing a builder can be as important as choosing your home. But with literally thousands of developers in Canada, how do you know who to hire, how to get what you want, and how to get what you pay for?
A good place to start is by asking for recommendations from family and friends who have recently bought a new home or have had past experience with builders. Another good idea is to check with the Better Business Bureau and the Tarion Warranty Corporation to see if the builder is a member in good standing.
Once you’ve narrowed down your list, meet with all prospective builders and interview them about their skills, experience, and professionalism. Things you may want to ask include:
* For how long has the company been in business? Is it a full-time developer and, if so, how many homes does it build each year? Be cautious of part-time builders, as they may not have the same experience, up-to-date knowledge, and network of suppliers and subtrades as those who have made a career of home building.
* What kind of training do key people in the company have? What is their background and experience? For instance, is the company an R-2000 builder? Does it have industry certification? And is it familiar with new trends in housing, such as Healthy Housing, FlexHousing, and Energy Star?
* Is the company a member of an industry organization, such as the Canadian Home Builders’ Association, the Canadian Manufactured Housing Institute, or its regional affiliates, the Manufactured Housing Association of Canada, the Canadian Construction Association, or the Urban Development Institute? Also, does it have all the licences and registrations required for your province or territory?
* Will you be able to visit your home during construction? If so, are there any restrictions, such as the number of visits you can make or who can accompany you?
* Will the builder conduct a pre-delivery inspection (PDI) with you before you take possession to verify that the home has been completed as agreed and identify any outstanding items? Can you bring a professional home inspector with you?
* Does the company have an established network of subtrades who work on all or most of its homes and, if so, who are they?
* Will the company provide you with a list of previous clients for a reference check? If so, be sure to contact everyone on that list to find out how satisfied they are with their new homes and the after-sales service.
* Finally, has the company won any awards for excellence or outstanding performance in construction, design, innovation, marketing, or consumer satisfaction?
For more information about choosing a home builder or to order your free copy of CMHC’s Homebuying Step By Step consumer guide and workbook or About Your House fact sheet on selecting a builder, visit our website at www.cmhc.ca or call toll-free 1-800-668-2642.
Mark Salerno is district manager for the GTA at the Canada Mortgage and Housing Corporation. For over 60 years, CMHC has been Canada’s national housing agency and a source of objective, reliable housing expertise.
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