How Many Bids Should I Get for My New Home?

  • October 7, 2024

How Many Bids Should I Get for My New Home?

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How Many Bids Should I Get for My New Home?

Building your dream home is an exciting journey, but it can also come with its fair share of decisions. One of the first questions most people ask is, “How many bids should I get?” While gathering multiple bids is an essential part of the process, there is a balance between finding the right builder and getting caught in analysis paralysis.

Let’s explore how many bids are ideal and why too many can sometimes do more harm than good.

 

Why You Should Get Multiple Bids

When it comes to selecting a custom home builder, getting multiple bids offers several benefits:

1. Comparison Shopping: You can compare prices, timelines, and quality of services offered by different builders.

2. Understanding the Market: Bids give you a sense of the local market rates and prevent overpaying for your project.

3. Building Trust: Meeting with several builders allows you to gauge their communication styles, professionalism, and experience, helping you make a more informed decision.

 

How Many Bids Are Ideal?

A common rule of thumb is to get three bids. This provides a good mix of options without overwhelming yourself with too much information.

Here’s why three is the sweet spot:

• Variety: Three bids give you enough variety to see differences in pricing, approach, and project management styles.

• Quality Over Quantity: With three bids, you can focus on the quality of each proposal and avoid getting bogged down in endless comparisons.

• Personal Connections: Building a custom home is a deeply personal project. With three builders, you’ll have time to properly vet each one, understand their communication style, and evaluate how well they align with your vision.

 

Why Too Many Bids Can Be a Problem

It’s easy to think that gathering more bids will give you more options or better insight, but there are drawbacks to casting too wide of a net.

1. Information Overload

Too many bids can lead to information overload. If you’re evaluating 6-8 builders, the details of each proposal can blur together, making it harder to differentiate the best choice. You may start to focus on numbers alone instead of considering the intangibles—like trust and communication—that are just as important in a long-term project.

2. Time-Consuming

Each bid takes time to obtain and review. Not only will it slow down the decision-making process, but spending months just collecting bids could push your project timeline out unnecessarily.

3. Frustration for Builders

Reputable builders invest significant time and effort into crafting a detailed, accurate bid. If a builder knows they are competing against 7-10 others, they may see it as a “shot in the dark” and put in less effort or even decline to bid.

4. Quality May Suffer

When you focus too heavily on getting the lowest price, there’s a chance the quality of your home could suffer. The lowest bid isn’t always the best bid, and choosing based on price alone could lead to future issues or unexpected costs.

 

How to Narrow Down Your Choices

Before you even start asking for bids, take time to research builders and check for these key qualities:

• Reputation: Look for reviews, testimonials, and references. A builder with a strong reputation is more likely to deliver high-quality work.

• Portfolio: Ask to see examples of previous work to ensure the builder’s style aligns with your vision.

• Communication: How quickly do they respond to questions? How well do they explain their process? A builder’s communication style is critical, as you’ll be working together closely throughout the project.

• Certifications and Experience: Make sure the builder has the appropriate licenses and a track record of building custom homes similar to what you want.

Once you’ve done your research, invite only 3-5 builders to bid on your project. This way, you’re getting a good range of options without overwhelming yourself.

 

The Bottom Line

When building your new home, getting multiple bids is crucial to finding the right builder, but it’s important to strike the right balance. Aim for 3-5 bids to give you enough perspective without overwhelming your decision-making process.

Ultimately, it’s not just about choosing the lowest bid—it’s about selecting the right builder who understands your vision, communicates well, and delivers quality work. By doing your research and sticking to a reasonable number of bids, you’ll be well on your way to making your dream home a reality.

Would you like assistance narrowing down your choices or have questions about the custom home building process? At Peterson’s Builders, we’re here to help guide you every step of the way.

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