Why should you use a Realtor when choosing a builder/contractor?

Contractors come in all sizes and shapes -- just like in any other profession. An experienced Realtor knows who the good and bad contractors are, which contractor specializes in the type of home you want to build and what issues need to be reviewed in choosing a contractor.

What issues should you review? This depends upon the construction contract. Will the contractor build your home and then sell it to you at the end of the project? Are you the responsible party? Is your contractor just a fee-and-bonus-based construction manager with all liability accruing to you?

The following items need to be examined:
1. Insurance - all good contractors carry the following: Workers Comp (required by law), Liability and Builders Risk (if they do not carry, you should provide it).

2. License - all New Mexico builders are required by law to have a state issued license. Your realtor can check the status of your contractor's license and determine if there have been any complaints against the contractor.

3. Bonding - this is not required in New Mexico and few home builders have bonding. Disreputable contractors often use the term "Licensed and Bonded". This "Bonded" is a bond that is required by the state to assure the state is paid for building permits, it is not a performance or material bond.

4. Building Experience - often affordable home builders cannot build expensive homes and vice versa. Choose a builder that has experience in your price range.