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Most areas offer many choices of production-line builders with differences - types of homes they construct, the quality and price range - and that's appealing to a wide range of home buyers who would rather have a new home instead of a property that is offered through resale.
If you are considering "new construction", it's important to understand that when you visit a model home or meet with the builder, you are not represented. In North Carolina, the builder representatives that are "on-site" are not required to be licensed real estate agents. They are there to represent the builder's best interest. Most builders also use their own "offer to purchase contract", which is geared toward their protection. If you are planning to visit a model with an on-site builder representative or meet with the builder personally, your real estate agent should go with you to make sure your interests are represented. Some on-site builder representatives will allow your agent to call and "register" you, without being present. Once you meet with the builder or builder's representative by yourself, your real estate agent will not be allowed to represent you. It is also possible that you will have to provide proof of representation to the builder - a copy of the "Buyer Agency Agreement form" you have with your real estate agent. As you continue to read, you will find links to national, state, and local home builder associations.
Types of Builders
Home buyers generally have two kinds of builders to choose from: custom and production builders, Lake Norman has both. The differences are explained below.
Custom builders generally:
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Will build on the land that you own, however some will build on land they already own. |
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Build custom homes that are determined by the lot from "special" floor plans and for a certain client. |
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Some of the custom builders offer design services as well. |
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Normally custom builders only construct single-family dwellings. |
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Custom builders limit their production amount to fewer than 25 homes annually. |
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Tend to build fine homes, estates or luxury-type homes. |
Production builders generally:
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Build on the land they already own. |
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Normally offer several floor plans, but they use "stock" plans. |
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Construct all types of structures - single-family, condominiums and townhomes. |
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Production builders build in large volumes, sometimes well over 25 structures
a year in all price ranges. |
Research the Builder
New home buyers normally use a production builder. Buyers should throughly research builders before making their selection. Some things to look for during your selection process are listed below.
Reputation. Review the builder's client list.
Location. Ensure they regularly build in the area you want to live. Some building codes and laws might not be familiar to the builder, which could end up costing you money.
Type of Home. Do they build the style home you want? Always select a builder who has previously built the style you want built.
Compatibility. Do all the buyer's personality mesh with the builder's and his representatives? It's a long and sometimes tedious process that will less stressful if everyone involved likes each other.
Warranties. Does the builder you are interviewing offer any warranties on the structure?
Financial stability. You need to research this because you want to make sure the builder can remain in business at least long enough to complete your project.
Financial strength. They might be stable now, but do they have the financial strength to remain strong during the ups and downs of the economy? Are they strong enough to last a couple of years down the road when you might decide to add-on or have other questions about the construction?
Builder web sites
Begin your research with two national web sites:
HomeBuilder.com has a search for locating builders. There's plenty of consumer information and links to builders.
Visit National Association of Home Builders. It contains consumer information and has an extensive list of builders.
The state web site for home builders is:
The North Carolina Home Builders Association (NCHBA) is made up of builders statewide. They gather and share information as well as efforts to ensure the clout the home building industry requires and has enjoyed all for self protection, benefits of its membership and the protection of home buyers.
Two local web sites for home builders are:
In the Lake Norman area, the Lake Norman Home Builders Association is the voice of the home building industry in the Lake Norman area. They're also a great resource for new home buyers and homeowners planning to remodel.
The Home Builders Association of Charlotte is a trade organization made up of over 1,000 companies and nearly 40,000 industry professionals that are directly related to home construction and sales, development of land, material vendors and suppliers, as well as subcontractors and other real estate professions.
Before You Sign
Before signing a contract with any builder, you should:
Get referrals from family and friends that you trust and have the same taste in design.
Seek input from your lender or the Lake Norman Home Builders Association.
Check with the Charlotte Better Business Bureau.
Check with the North Carolina Licensing Board for General Contractors
Ask for verification documentation as proof the contractor has current
Workers Comp and Liability insurance that has the appropriate value amount
for your construction.
North Carolina law states that any person, firm, or corporation who undertakes for a fixed price, commission, fee, or wage to construct or superintend or manage the construction of any building or other improvement costing $30,000 or more must be licensed as a general contractor. Licensing not only requires passing a written exam, but proof of working capital, that is directly related to the level of licensing.
Whether you currently live in NC or moving from another state, it is important that you understand two important issues so read the Working with Agents and Difference in Agents. | 
