If you’re contemplating building a custom home, there are several key factors to review before choosing a builder.

Be sure to ask around for references and recommendations for builders and remodelers. Family, friends, and acquaintances can be a great resource, especially if they have first-hand experience; an even better place to check would be with your local home builders association.

You can also check to see if a respective builder has a permanent location for their business and is in good standing with suppliers and area banks. The Better Business Bureau is another good source to review for any complaints against a particular builder.

Most custom builders take 5 or more years to truly establish their presence in the market and to gain financial stability. This is important for any warranties they promise on a home because if the company goes bankrupt before the warranty is up, they may not be able to follow through on the guarantee. You will want to check to see if they have liability insurance to cover any accidents that may occur on site.

You can ask a builder to provide you with names previous clients; be cautious if they decline, and if they do give you names try to contact them to discuss their experience with the builder. It’s also a good idea to ask to see a current project site the builder is working on; check for safety issues and material quality.

Get to know your potential builder. Make sure you feel comfortable with them and try to get a feel for how effective their communication skills are. Research their website a bit and try to get a feel for what kind of work they have the most experience with; some builders specialize in a particular architectural style.

Once you’re ready to compare contracts and looking to accept a bid, there are a few more considerations to keep in mind. Make sure any contract you are asked to sign is written clearly and is free of grammatical errors and review the home warranty and homeowner manual as well. Cross-reference these documents to ensure consistency. If a builder offers you an unusually low bid, take caution; if they are unable to buy the appropriate materials and cover the cost of labor, you will end up with sub-par work.

Though the task of choosing the perfect builder for your custom home may seem daunting, these simple guidelines will help you make that tough decision. Your ideal dream home is absolutely possible with the right custom builder.

For more information regarding this issue, check out the NAHB Builder Checklist.