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[Bridgegal]

We are house hunting and like most places there is very little on the market.  So, we've met with one builder and talked to another one on the phone.

It is OK to follow the process with both until we get a price/bid and then decide on neither or one of them?  If so, should we tell them we're getting another bid?  We've never built a house and don't know how this part works.  

We don't want to step on anyone's toes.  Thanks

[LuvmyLab]

I think it's perfectly fine to get two different quotes from different builders.  You don't need to tell either one of them that you are getting more than one bid. You haven't finalized anything with either of them yet, so it's perfectly ok.

[Just Bling]

It's not about the price, it's about the reputation, how reliable are they?

Check the BBB, check court cases if you can (some states offer a website that you can search by business), tour homes they have built, talk to current home owners, than worry about the price.

One may use 1/4" sheets of OSB and another might use 3/4" sheets of standard plywood so you will see a huge difference in cost just based on this.  Also, it's wise to put into a contract a completion date with consequences or a builder has no incentive to finish the build.

You should get at least 2 quotes and the lowest is not always the best but you can learn from both of them.   Now the fun starts....

The other option is to network, call people you know and ask if they know anybody that's possibly moving or even an elderly person who may need nursing home care.  If you network, you possibly won't have to pay top dollar bidding against others.  Good Luck.

[LonestarBabs]

The cost of building materials has gone through the roof (no pun intended) AND some materials are in short supply. If you are building new be prepared for sticker shock due to increased materials costs and longer build times.

Prices of pre-owned homes are crazy, too. In many parts of the country there is simply little to no inventory.

New or pre-owned, be prepared for a wild ride right now.

[Snowpuppy]

It is crazy out there, for sure. 

You don't have to discuss intentions with anyone. You really are comparing apples to oranges. Lots in one location can demand so much more $ than a similar lot size in another area so look at price per sq ft and consider the finishes involved.

All builders have to build to code and pass inspection. What they build with is another matter. Materials like lumber and plywood are at all time highs.

I spoke with a realtor representing a builder and her attitude was take it or leave it, no negotiating and nearly no choice of finishes. Don't be surprised if you're asked for a pre-approval letter up front before they meet with you. 

I do have some vacant acreage and some stock plans for myself that are sitting on a shelf. I'm thinking of moving forward. 

[Desertdi]

Real estate is a cyclical market.   The same as the stock market.    Right now, there is a "boom" all over the country.    Next year, it could be the opposite........    

[RedTop]

I echo @LonestarBabs response regarding availability of building materials right now.   

I am in WV, and know 3 couples who are in limbo with their new builds, because their contractors cannot get the materials needed to continue the jobs.   All are in different stages of the building process, but only one house is under roof.   All 3 couples are already nailed to the wall to complete these houses and are scared to death over all the obstacles with getting supplies, the much extended timelines, and the final costs.  

Just this week, one of the couples had a relative in another state find most of a certain product they needed, and paid expenses for 3 friends with trucks, to make the trip with him to buy and haul that product back to WV, in order for the contractor to work next week.   

No way would I be building a house right now!

[Bridgegal]

Fortunately, we aren't looking at lots in a new development.  We have found two that we would buy outright and then chose our builder not a development builder.  That both simplifies and complicates things but that is what we are doing.  

[Kachina624]

@Bridgegal    I'm not looking to buy a house but I do like to look at houses for sale in my community.  Right now they're going like hotcakes and usually sell within a couple of days. 

I registered with Realtor.Com and get notifications within minutes of the houses being listed throughout the day.  If I was seriously looking, I'd have my agent on standby to zoom over to look at new listings.  Have you done this?  I think you have to be very aggressive.  There seem to be a lot of houses listed but they go fast.  They say the price here is up 17% in the past year. We probably have more turnover here than you do in your location. 

[Lilysmom1]

@Kachina624 , it is the same here.  Bidding wars are common.  Houses priced competitively to encourage bidding.  Building supplies hard to get.  We have people moving into the Province (low COVID rates a big attraction) and many are buying houses sight unseen except for video.  A sellers market for sure.  I would not want to be buying or building right now.  S