Recent news is a reminder that choosing a builder is about more than floor plans and price.
Building a new home is exciting. You get to choose the floor plan, finishes, colors and features that will eventually turn a set of plans into your home.
But there’s another side of homebuilding that doesn’t get nearly as much attention:
What happens if the builder can’t finish the house?
Recently, there have been news reports in Middle Tennessee involving homeowners dealing with construction projects that have stalled or remained unfinished.
We’re not interested in discussing the details of those situations or passing judgment on the builders or homeowners involved. But the stories do highlight something we believe is important:
Before trusting a company to build your home, you should know something about the company behind the construction.
At Michael’s Homes, we’ve been building in Middle Tennessee since 2004, and we’ve built and closed well over 1,000 homes. We thought this was a good opportunity to share some things consumers should consider before choosing a builder.
Don’t Just Ask What a Builder Can Build
When interviewing builders, it’s natural to start with questions like:
How much will my home cost?
How long will it take?
Can you build this floor plan?
What selections are included?
Those are important questions.
But we believe homeowners should dig deeper.
Ask how long the company has been building. Ask how many homes it has actually completed. Ask to see some of those homes. Ask for references. Ask about the warranty and construction process.
And here’s one most people probably don’t think to ask:
Who is carrying the financial responsibility while my home is under construction?
Why Financial Stability Matters
Long before a homeowner receives the keys, someone has to pay for lumber, concrete, windows, roofing, plumbing, electrical work, HVAC equipment, cabinets, flooring and dozens of subcontractors and suppliers.
Those expenses occur throughout the construction process.
That means a builder doesn’t just need construction experience.
A builder needs financial capacity.
At Michael’s Homes, we finance approximately 95% of the homes we build. We carry the responsibility of financing the build.
Sometimes we do that through lending relationships we’ve established over many years.
In other cases, we finance the construction ourselves without using a lender at all.
That didn’t happen overnight.
More Than 20 Years and 1,000+ Completed Homes
Michael’s Homes began building homes in Middle Tennessee in 2004.
Since then, we’ve built and closed well over 1,000 homes.
During that time, we’ve built through strong housing markets and difficult ones. We’ve experienced the Great Recession, COVID, supply-chain disruptions, rapidly increasing material prices, labor shortages and significant changes in interest rates.
And we’re still building.
Our ability to finance the overwhelming majority of our construction took years to develop. It required completing homes, paying our obligations, managing our finances responsibly and establishing strong relationships with lenders, suppliers and trade partners.
That history matters.
We Have Skin in the Game Too
When Michael’s Homes carries the construction financing, we have significant financial skin in the game.
Our money, credit, banking relationships and reputation are tied to completing the home.
Our objective isn’t simply to start another construction project.
Our objective is to finish it, hand you the keys and get everyone to the closing table.
That’s an important distinction when you’re deciding who to trust with something as significant as building your home.
Experience Is More Than a Number
No builder can promise that construction will never encounter a problem.
Weather happens. Materials get delayed. Unexpected site conditions are discovered. Subcontractors can fall behind. Plans sometimes need to change.
Experience doesn’t mean those challenges disappear.
Experience means you’ve encountered challenges before and developed the relationships, processes and financial resources to work through them.
For Michael’s Homes, more than 20 years in business and more than 1,000 completed homes represent relationships with subcontractors who know our expectations, suppliers who have worked with us for years and financial relationships that weren’t established yesterday.
Most importantly, it represents more than 1,000 homes where construction started and ultimately reached the closing table.
Questions You Should Ask Before Choosing a Builder
Whether you’re considering Michael’s Homes or another builder, we encourage you to ask questions that go beyond square footage and selections:
- How long have you been in business?
- How many homes have you actually completed and closed?
- Who carries the construction financing?
- How are construction draws and payments handled?
- Can I see homes you’ve completed?
- Can I speak with previous customers?
- How do you handle unexpected costs during construction?
- Who will communicate with me throughout the build?
- What warranty is provided after closing?
- Lastly, go to the Tennessee Board for Licensing Contractors and verify the builder has a contractors license. (https://search.cloud.commerce.tn.gov/)
A builder should be comfortable answering those questions.
A Floor Plan Shows the Possibility. A Track Record Shows the History.
There are many good builders throughout Middle Tennessee. Our purpose in sharing this isn’t to tell you that Michael’s Homes is the only company capable of building your home.
It’s to encourage you to do your homework before making one of the largest financial decisions of your life.
Pictures can show you what a builder wants to build.
Plans can show you what a builder intends to build.
A long history of completed homes shows you what they’ve actually built.
At Michael’s Homes, we’ve been building since 2004 and have built and closed well over 1,000 homes.
And today, we are financially positioned to carry the construction financing on approximately 95% of the homes we build, whether through our established lending relationships or, in some cases, entirely with our own funds.
That’s part of our story—and it’s something we believe homeowners should know to ask about.
If you’re thinking about building on your land or ours, we’d be happy to sit down with you, explain how our process works and answer the questions you should be asking before choosing any builder. CONTACT US
