Building a new home ranks among life’s biggest investments. Your choice of builder shapes everything – from construction quality to your daily experience during the building process.
The National Association of Home Builders reports that over 1.2 million new homes were built in 2024, with new builds making up 20% of that number. This makes picking the right builder more critical than ever.
As we covered in our ultimate guide on new builds, the planning phase sets the tone for your entire building project – and selecting the right builder stands as the cornerstone of this phase.
This guide breaks down nine practical steps to select a builder who matches your needs. We’ll show you exactly what to look for, which questions to ask, and how to spot the signs of a quality builder.
By following these steps, you’ll gain the knowledge to make a confident choice in your builder – setting the foundation for your future home.
1. Define Your Home Building Goals
Let’s talk about what you really want in your new home. No fancy plans yet – just your honest wish list and real numbers.
Money talks. Think about what you’re comfortable spending – not just what the bank says you can borrow. Here’s a pro secret: the smartest homeowners put aside an extra 10-15% for those “just in case” moments. That way, if you find perfect hardwood floors or need extra electrical work, you won’t have to stress.
What gets you excited about your new home? Maybe it’s a kitchen big enough for family gatherings, or that home office with perfect morning light. Write it all down. Some features are cheaper to add during construction than later – like extra electrical outlets or kitchen island plumbing.
Time matters too. Most homes take 7-9 months to build. Want to move in by the holidays? Work backwards from there. Think about local weather – nobody wants to start foundation work during spring rains.
Got inspiration? Save those Pinterest boards, magazine clippings, and phone photos of houses you love. They’re gold when explaining your vision to builders.
Keep track of homes and features you like. Take photos, save links, clip magazine pictures – anything that shows builders exactly what you want. This makes it easier to match your vision with what builders can deliver.
Pro Tip: Create a spreadsheet with three columns: “Must-Have,” “Nice-to-Have,” and “Budget Impact.” This organization method helps prioritize features while keeping costs in perspective.
2. Research Builder Experience
Good builders have receipts – real proof of their work. A 2024 National Association of Home Builders report shows that top builders complete 5-7 homes yearly in their size category. This gives them enough focus for each project without spreading too thin.
Check their past five years of work. The most reliable builders maintain a steady stream of projects without overextending. A mix of completed homes shows they can handle different styles and budgets. The best proof? Visit homes they built 3-5 years ago – you’ll see exactly how their work holds up over time.
Local experience counts. Builders who know your area understand the building codes, weather patterns, and which materials work best in your climate. Strong relationships with local suppliers and subcontractors mean smoother builds and better prices.
Pay attention to their style range. Some builders specialize in modern designs, others in traditional homes. The key is finding someone whose portfolio aligns with your vision. Great builders will show you similar projects they’ve completed, proving they can deliver what you want.
Pro Tip: Request to see a builder’s punch list from a recently completed home. How they handle final details often reveals their overall quality standa
3. Verify Credentials and Legal Requirements
- State-issued contractor's license with current validity
- General liability insurance (minimum $1 million coverage)
- Workers' compensation insurance
- Bonding coverage
- Membership in professional organizations like NAHB
Pro Tip: Screenshot or photograph all verification documents and create a digital folder for each builder you’re considering. Include dates of verification and who provided the information.
A quick call to your state’s licensing board reveals any past violations or unresolved complaints. The Better Business Bureau rating adds another layer of confidence – though remember, even good builders might have a few resolved complaints. That’s normal in construction.
Legal protection matters. A 2024 construction industry report shows that 24% of homeowner disputes stem from working with improperly licensed contractors. Smart homeowners dodge this bullet by verifying credentials upfront.
Don’t skip the warranty check. Quality builders offer structured warranties: one year for workmanship, two years for systems, and ten years for structural elements. Get this in writing. Reading the fine print now saves headaches later – like knowing exactly who handles warranty repairs and how quickly they respond.
New Michigan building codes in 2024 set strict standards for energy efficiency and safety features. Your builder needs to know these inside out. Ask about their recent code training and how they stay current with building regulations. The best ones take pride in explaining how they meet – and often exceed – these standards.
Good builders also carry higher insurance limits than required by law. Why? Because they know accidents happen, and proper coverage protects everyone. Ask for proof of insurance directly from their insurance company, not just a certificate.
4. Analyze Financial Stability
Pro Tip: Ask for references from the builder’s material suppliers, specifically those they’ve worked with for over five years. Long-term supplier relationships often indicate financial stability.
Key indicators of a financially stable builder:
- Consistent relationships with subcontractors
- Strong standing with material suppliers
- Permanent business location
- Structured payment schedules
- Established banking relationships
Reliable builders present clear payment schedules linked to construction milestones. They maintain transparency about business operations and project financial management. Their payment terms protect both parties – no excessive upfront deposits, just balanced installments that match construction progress.
Strong supplier relationships offer valuable insight. Builders who maintain long-term partnerships with lumber yards, equipment providers, and subcontractors demonstrate consistent payment history and operational stability.
Be cautious of builders requesting large deposits or cash-only transactions. Professional builders maintain sufficient working capital to initiate projects without requiring excessive upfront payments.
5. Examine Past Work
Sites tell stories. Visit at least three homes your potential builder completed – one from last year, another from three years ago, and if possible, one that’s five years old. This timeline reveals build quality and how well their work ages.
Start outside. A well-built home shows precision in its rooflines, window alignment, and foundation setting. Look for consistent gaps between siding boards and even spacing around windows and doors. These details signal careful workmanship.
Move inside and study where surfaces meet – cabinets against walls, trim around windows, floor transitions between rooms. Quality shows in the details: crisp paint lines at corners, even tile spacing, and millwork that fits precisely. Small gaps or misalignments now might mean bigger problems later.
Current homeowners offer valuable insight into a builder’s performance. Their feedback on timelines, problem-solving, and post-construction service paints a clear picture of what you can expect.
Most builders will show you their latest project under construction. This behind-the-walls view reveals work standards before drywall covers everything. A clean, orderly site typically means methodical, careful work.
Pro Tip: Visit builder’s completed homes during different weather conditions. Rain can reveal drainage issues, while sunny days highlight natural light placement.
6. Interview Builder Candidates
Face-to-face meetings cut through marketing promises. Pick a time when you can talk without rushing – most quality builders set aside a full hour for initial consultations.
A good builder leads the conversation with questions about your plans, budget, and timeline. They’ll point out potential challenges in your ideas and suggest practical solutions. This back-and-forth shows their experience and honesty.
Pay attention to communication style. Your builder becomes a regular part of your life for months. Professional builders respond within 24 hours, explain things in plain language, and document every conversation. They provide clear timelines for decisions and outline exactly what they need from you.
Top builders bring proof to the table – detailed contracts, specifications, and examples of their work. They explain their building process, from site preparation to final walkthrough. If they use project management software, they’ll show you how you’ll track progress.
The best ones talk openly about their current projects and workload. They won’t promise unrealistic start dates just to win your business.
Pro Tip: Before your meeting, write down your deal-breakers and must-haves. When builders explain their process, mark off which points they cover without prompting. The ones who address your key concerns naturally often make the most attentive partners.
7. Review Contract and Warranty Details
A solid contract protects everyone involved. The best contracts use clear language that spells out every aspect of your build, not vague promises that leave room for interpretation.
Your contract needs firm numbers. This includes the total price, payment schedule, and exactly what work gets done. Good builders list specific materials – not just “hardwood floors” but “3/4-inch white oak hardwood flooring with three coats of polyurethane.”
The warranty section matters most. Quality builders offer tiered coverage:
- One year for workmanship and materials
- Two years for major systems
- Ten years for structural elements
Pro Tip: Pay special attention to allowances – those estimated costs for items you’ll pick later. A $2,000 lighting allowance might sound fine until you discover basic fixtures for your home plan total $3,500. Get real numbers based on your actual selections.
Change orders need clear rules too. Your contract should explain how changes get approved, priced, and added to the schedule. This prevents misunderstandings when plans shift during construction.
8. Check References Thoroughly
Smart builders hand over references before you ask. Call at least three past clients – one recent, one from a year ago, and one from several years back. Their insights paint a picture of the builder’s consistency and long-term service.
What to ask past clients:
- Did the final cost match the contract price?
- How did the builder handle unexpected issues?
- Was the work finished on schedule?
- Does the builder respond to warranty calls?
Skip the basic yes-no questions. Instead, ask “What surprised you most about working with this builder?” This opens up honest conversation about real experiences.
Pro Tip: Visit a current job site. Active projects show you how the builder manages daily work. Look for organization, safety measures, and site cleanliness. A tidy site often means careful work.
Don’t just talk to homeowners. A quick chat with suppliers about payment history or subcontractors about working relationships reveals volumes about a builder’s professional standing.
9. Evaluate After-Service Support
The best builders stick around after they hand over your keys. Their commitment extends beyond the final walkthrough – they understand that a home reveals its true character in the months after you move in.
Quality builders maintain dedicated warranty departments. They track every service call, respond promptly to issues, and keep detailed records of repairs. Ask how they handle common first-year adjustments like nail pops, settling cracks, or door realignments.
Pro Tip: Request a copy of their warranty service process in writing. This document should outline:
- How to report problems
- Response time expectations
- Emergency contact information
- Scheduled maintenance visits
- What's covered and what's not
Top builders schedule check-ins at 60 days and 11 months after completion. The first visit catches early issues, while the second addresses anything that appears before your one-year warranty expires.
Some even create digital files of your home’s specifications, paint colors, and material details. This information proves invaluable years later when you need to match materials or make repairs.
Your relationship with a good builder doesn’t end at closing – it evolves into a long-term partnership focused on maintaining your home’s value and your satisfaction.
Make an Informed Builder Choice - Starting Today
Choosing the right builder transforms your dream home from plans to reality. These steps create a clear path to finding a builder who values quality, communication, and long-term relationships. For a complete understanding of the building process, our Ultimate Guide on New Builds provides valuable insights to support your journey.
At Essex Custom Homes, we’ve spent over three decades earning our reputation in Michigan. Our approach aligns with every best practice in this guide – from detailed contracts to dedicated after-service support. But we don’t expect you to take our word for it. We invite you to apply these steps to evaluate us.
Bring your home ideas to life. Visit our website to explore our portfolio, or contact us for a straightforward discussion about your plans. Allow us to show you the proven craftsmanship and attention to detail that makes Essex Custom Homes Michigan’s trusted choice for custom builds.
