Building Your Dream Home

It's a demanding process, but the payoff can be spectacular. When you're presented with the keys, you'll have a one-of-a-kind home built specifically to complement your needs, tastes and dreams.

But you'll need to do considerable homework to make certain the experience is as rewarding and hassle-free as possible. Following are some commonly asked questions and answers about custom homes and the building process.

What's the difference between a custom builder and a production builder?

That's not as simple a question as it might appear. Here are some basic guidelines:

Custom builders build on your lot, build one-of-a-kind homes from a unique set of plans, build 25 or fewer homes per year and build only high-end, single-family homes.

Production builders build on land they own, build from stock plans but offer choices and upgrades, build in large volume and in a wide range of price-points and build all housing styles, both single-family and multifamily.

Those are the guidelines. But that fact is, the line between custom building and production building has become somewhat blurred in recent years.

Many production builders offer so many options and upgrades in their high-end products that the final product is, for all intents and purposes, at least a semi-custom home. And many custom builders offer stock plans-albeit elaborate ones-so the final product may be stunning, but not necessarily unique.

Certainly, there are still traditional custom builders who lavish their attention on just a handful of special projects annually. These builders compete in the upper-tier of the housing market, often constructing homes valued at $1 million and higher.

But other builders offer select-a-plan homes that deliver much of the panache of a true custom job at considerably lower prices.

Which direction you choose may be more than a simple financial decision. After all, building a one-of-a-kind custom home involves a commitment of time. It's a complex collaboration involving builders, architects, designers and suppliers.

Although some custom builders offer comprehensive design/build services that alleviate some of the decision-making pressure, you should still be prepared to invest the kind of time that such a large investment warrants.

Choosing a stock plan with modifications also requires time and effort. But with less customization required, there are naturally somewhat fewer decisions to make.

How do I choose a custom builder?

Selection of a builder is the most important of a long list of decisions you'll have to make. The builder, more than any single person, will determine whether or not your custom-home adventure is terrific or horrific. So keep these factors in mind:

o Customer satisfaction. Visit homes the builder has completed and talk to the owners. Are they happy with their homes and, most importantly, would they buy another home from the same builder? Suppliers and realtors also know who the best custom builders are-see if you can find one who'll give you the straight scoop.

o Quality of work. When you visit, inspect the quality of the finishes such as cabinetry, trim work and paint. If you're not qualified to judge, bring along someone who is. Also review the warranty and find out what kind of service you can expect after moving in.

o Personal compatibility. You and the builder will be in close contact for many months. Is the builder someone with whom you feel comfortable? Is the builder's personality open and up front? Do you feel you can express your concerns and they will be heard and acted upon?

If I already have my plans, should I get several builders to bid?

Buying a custom home isn't like buying a car, where playing one dealer against the other can get you a better deal. In fact, some builders simply refuse to spend the long hours required preparing a proper bid for a one-of-a-kind home.

Bidding is risky, especially if the home has unusual details and materials. Besides, the top builders-those who do quality work, pay their employees and enjoy stellar reputations-are very unlikely to be the low bidders anyway.

While you shouldn't be willing to overspend, building a custom home is one decision that simply cannot be made using numbers alone.

The negotiated contract is generally considered to be a smart way to go. This process typically begins with the selection of a designer or an architect, with the builder joining the team during the design phase. That way, the builder's input can be considered when it's still easy and inexpensive to alter plans.

A negotiated contract means you'll be selecting the builder based less on price and more on factors such as experience with similar projects, reputation, references and your own comfort level. In the long run, those are the issues that matter most.

A key component of a negotiated contract is a letter of intent between you and the builder that places a value on the work prior to the start of construction. Once you sign off on the final design and construction estimate, the builder, not the designer or architect, becomes your primary contact.

If you absolutely insist on bids-and can find qualified builders willing to bid-then make certain the plans leave little room for interpretation. Otherwise, you might not be comparing apples to apples. Work with your building designer or architect to evaluate the bids you receive.

How do I choose a building designer or an architect?

A licensed architect is qualified by education, experience and rigorous state examinations to take your home from the design concept through the construction process. Most will provide services that include working with you to create a final plan, developing a budget and a preliminary estimate and producing working drawings and specifications.

Most architects charge between 8 and 15 percent of the cost of construction-more if the scope of work includes project management and selection of a builder and other team members, such as a landscape architect and an interior designer.

When selecting an architect, use the same general criteria as when selecting a builder. Talk to homeowners and find out if they were satisfied with the services they received. Personal compatibility is important here as well, since the design process requires considerable client participation.

A building designer is an alternative to an architect. Building designers are not licensed, but often have substantial experience designing custom homes and close working relationships with custom builders. Building designers also generally charge lower fees than architects do.

Architects and building designers have professional associations that can supply you with lists of members. For architects, it's the American Institute of Architects; for building designers it's the American Institute of Building Designers.

What's a design/build firm?

A design/build firm basically supplies one-stop shopping for design and building services. In a typical design/build firm, an in-house architect or building designer works closely with you and the construction staff to design a home that meets your requirements and respects your budget.

In fact, the enhanced ability to stay within budget is an advantage of the design/build approach. As you and the designer tinker with the plans, the construction staff prices them and reports how any changes you're proposing will impact the cost. Using an independent architect and a competitive bidding process, this continuous feedback isn't possible.

In most cases, design/build firms require two contracts-one for design and one for construction. The design fee-usually one to three percent of the overall budget-is often rolled into the construction price or even waived if the design/build company ultimately builds the home. In other cases, the design work is billed regardless.

Some builders and architects or building designers offer design/build services through a trusted network of independent professionals not necessarily under the same roof. With proper organization and communication, this approach can also work nicely.

Once construction starts, what's my role?

The builder isn't the only team member with responsibilities. There are a number of things you'll need to do to make certain the job goes smoothly.

The following tips come from Carol Smith, editor of Custom Home magazine and author of Building Your New Home: An Insider's Guide, published in 1996 by the National Association of Home Builders:

o Make product selections on schedule. You'll have a timetable for selecting products, such as lighting and other fixtures. Many products can hold up the project if they aren't delivered at a certain time during the construction process.

o Stick with your budget. Try to avoid after-the-fact changes and expensive substitutions. If you see something you really want but didn't budget for, write down the make and model number and wait to buy it until you see if you're under budget other areas.

o Visit the job site regularly. Write down questions and concerns and discuss them later with the builder later. Subcontractors, who are paid by the hour, don't have all the information the builder has and may give you an incomplete answer.

o Maintain realistic expectations. The builder can't control the weather, late deliveries and delayed governmental approvals. Try to remember that the builder is probably just as anxious to complete the job as you are.