Wednesday, August 11, 2010

Make 70% of Problems Go Away at Zero Cost

High volume builders work really hard to turn over near-perfect homes on completion. This is a fact, and they often invest thousands of dollars and man-hours into systems to try to achieve this worthy goal.

But high volumes create their own challenges, and most homes have a few issues to resolve after the homeowner moves in.

Builders will try to clear off the items remaining as listed on possession or inspection forms, but it often takes months to co-ordinate the process. This time lag sets up frustrations in the homeowner’s mind.

But the builder is dealing with the fifty or so homes currently in construction, and the endless stream of new projects further complicates cleaning up the leftovers.

Whether by design or by default, high volume builders have learned that 60 to 70 percent of the “lists” or complaints will go away in time, simply because homeowners will eventually give up, or better yet, do the repairs themselves.

This odd phenomenon likely perpetuates the cycle, as over-worked service departments just cannot keep up with the stream of needs.

*more on next blog

Friday, August 6, 2010

When Service is an Issue

I received a call today on a service issue. The item was typical, windows gathering condensation on the glass and elsewhere in the cold months of winter. The issue was typical too…..after many calls, letters, and e-mails the client still could not convince either the builder or the warranty provider to do anything.

In fairness to the builder, I have seen several cases where the lifestyle of the family in the home loads up the interior air with many times the normal amount of vapor. I am not sure any current residential system will perform well if abnormal amounts of cooking, washing, and showering load the air with many times the normal water vapor. It has to condense somewhere, and it will always condense on cooler window glass. Always.

The problem with this case is that the homeowner had taken it far enough along the process to get the Warranty Program to act as conciliator. The homeowner paid a few hundred dollars to the Program to access this service, as did the Builder in this case.

The thing is, no-one anywhere in this scenario ever opened up a wall or removed a trim board to verify if the windows were installed and insulated correctly. They all just stood and pointed moisture meters around and made their pronouncements.

That, to me, is neither service nor warranty.


Monday, August 2, 2010

The Truth About Custom Builders

Compared to a tract builder, a true custom builder will cost you $20,000 more per house right out of the gate, minimum. Why, you ask?

Well, number one, he or she pays all their trades more (about 10 per cent more) than a tract builder. The reason for this is simple. True custom builders want the building experience to go well for the client and the trades. So he will pick the cream of the crop — the better framers, the better finishers, etc. Then he will develop an attitude of co-operation and excellence among them all, so that they behave like a team and take pride in the work they do.

Unlike the tract builder — who will beat and berate his “team” to produce high volume at the lowest cost — the true custom builder treats his team like a big family, develops loyalty, and generally fosters a healthy climate around the work he manages.

Clientele of a true custom builder can rely on being able to speak to the builder directly during and after the construction process. This is key, and if you are getting access to the top banana then you are getting time with someone who has the power to make decisions on the spot, who knows the most about the process and, of course, whose time is worth a lot of money.

So remember: if you are looking for a simple home-buying experience, buy “off the shelf” from the tract builder and keep the costs down by avoiding any changes to the plans. They are absolutely the best deal, and now you know why.

But if it’s going to be your legacy home — something you want to put your stamp on, and you can see the kids growing up and graduating from it — maybe you ought to explore custom a bit more. Fond memories start with a good building experience.