When it comes to choosing a builder for a newly constructed home, reputation reigns supreme.
According to a recent Homes.com survey, more than a third of buyers and prospective buyers said a builder’s reputation is the single most important factor influencing their decision — outweighing experience, materials, incentives and even location.
For its New Construction: What Buyers Want Survey, Homes.com partnered with YouGov in May to poll more than 1,000 people age 25-plus who have incomes of at least $50,000 and either purchased a new home in the past two years or plan to buy a newly built property in the next two. See the full methodology.
In the survey, the respondents ranked the seven qualities they care about most when shopping for a newly built residence: 36% of owners and prospective buyers said they prioritize a developer's reputation, including client reviews, above everything else.
Where do they go to find that information? Just over half of home hunters search the internet for information on developers. Homes.com offers a comprehensive look at builders and new construction developments with the latest lots and listings.
Respondents also leaned on real estate agents for the full scoop.
Reputation matters through the best and worst of times, said Claudine Leger-Wetzel, vice president of sales and marketing for Stock Development of Naples, Florida. "In good times and bad times, it’s about your brand."
Buyers said other qualities factored into their decision to trust a builder. The following ranked high on their list:
- Experience (21%)
- Quality of materials (18%)
- Variety of options (7%)
- Builder location (7%)
- Word of mouth (7%)
- Builder incentives (7%)
An agent weighs in: The questions you should ask
Whether buyers speak directly to a builder or use an agent, they should ask the following, according to Nurit Coombe, managing partner at realty firm The Agency:
- How long have you been in business?
- Where else have you developed, and can I visit or walk through those other projects?
- What awards have you won?
- When will construction begin, and will it be on time? What are the maximum delays you've had?
- What are the guarantees that you’re willing to give? Warranties and assurances? If you go bankrupt, what happens?
"If it’s a builder that does two to three homes a year, he’s not really a builder," Coombe said. It's important to have a contract established from day one, one that establishes that the buyer owns the lot and can make payments by installment, Coombe added. Why?" If he does not finish, delays too much or suddenly disappears, you own the lot and can move it [the project] to someone else," Coombe said. Research should begin with a portfolio of the developer and the company's work. Coombe said she also recommends researching the builders on the websites of the National Association of Home Builders and Better Business Bureau and to check for lawsuits, past or pending.