Do you know what most often hinders the success of a new-home project? Fear. Fear of the unknown, of unscrupulous contractors, shoddy materials, of somehow getting caught in a money pit and ending up holding the bag.

This high-level of concern is understandable. Often our clients’ home is their largest single investment. For many, this is their first experience building a home. And for all there is a lot to learn about new home construction.

As professional builders, we understand and respect our clients’ concerns. Our job is to demystify the building process, help our clients identify and understand their concerns and overcome them quickly and confidently.

In addition to being good listeners and problem-solvers, professional builders operate on solid business principles and practices that alleviate the majority of what clients often fear about the homebuilding process, including:

Reliable partners. We seek out, work with, and retain top-quality subcontractors and materials suppliers. Our trade partners possess similar philosophies and approaches to running a successful business and are committed to the same high level of construction quality and standards. This helps mitigate disputes, foster cooperation and produce better-built homes.

We constantly review our trade relationships to ensure that their pool of subs and suppliers consistently delivers high-quality work at a fair price. That diligence protects your investment and helps remove the fear of poor workmanship and unreliable performance.

Record keeping. The best builders are diligent (some say obsessive) about documenting their new-home projects to make sure costs, schedules and progress align and meet their standards of quality and those of their clients.

For the same reason, professional builders demand similar diligence and reporting from their trade partners — not so much to keep them in line, but more to enable their own accounting processes to be complete, accurate and current.

As such, professional builders can present completely transparent and reliable reports at any time to their clients to ease concerns about whether their new home project is on track.

Protection. People having a new home built for them are often afraid that they’ll somehow be on the hook for unpaid work or materials once the job is over and their builder has moved on to his next house. It’s a legitimate fear and an all-too-common reality.

These concerns are easily managed by professional builders. As part of their standard business practices, they pay their bills on time and only from each project’s budget. In addition, they routinely collect lien releases from their trade partners upon satisfactory completion of their work.

Collecting lien releases on a timely basis (as the project progresses, not just at the end) removes the chance that a subcontractor or materials supplier will make a claim for payment against a new home; in fact, the best builders provide copies of those lien releases so that owners can rest assured that the bills have all been paid.

Sophisticated builders practice "fear management". They take a professional approach to their business and are sensitive to the concerns of their clients. They help clients manage any anxiety from project inception through final walk-through. The key, as always, is communication. Helping clients manage their fear goes a long way to keeping communication lines open and promote a satisfying experience for all.

Whether it’s saving two cents on a gallon of gas or building your dream home, everybody wants a bargain.

Everyone loves a deal. No one likes paying retail.

If you are considering building a new home, now or over the next year or two, you face a number of difficult questions…

• Can I do better if I wait to build my home?
• Will interest rates go lower?
• Have home values bottomed or will there be further declines?

On the surface, it may seem as though the housing market has yet to begin climbing out the hole it fell into nearly three years ago. But we see a number of key indicators that point to some compelling reasons why now may be the time to get the best value for your home building investment.

Home Prices: Like the stock market, it is impossible to pick the bottom of the current housing market. No one can say with certainty that we’ve hit the absolute bottom. Like any market, supply and demand impact price. The inventory of older homes continues to dwindle. According to the Census Bureau, the US will add over a million new households each year. The current supply of new homes coming on line is nowhere near that number. As the demand for new homes rise, so will prices.

Interest Rates: We’ve already seen mortgage and construction loan interest rates inch up in 2011. They are likely to maintain that trend as the overall economy and demand for new homes continues to improve.

If you determine that interest rates are likely to go up, acting now can save money. Every quarter-point change in interest rates is equivalent to approximately $6,000 for each $100,000 borrowed over the course of a 30-year fixed-rate mortgage.

Materials and Labor Costs: We are in the middle of a commodity boom. The global demand for raw materials from countries like China and other emerging markets continue to put upward pressure on commodity prices. As the price of raw materials goes up, so do housing costs.

In addition, those manufacturers, suppliers, and trade contractors who are still standing after the housing bust did so by streamlining their operations and honing their costs of doing business. They are running very lean. In all likelihood, these companies will raise prices if there is an increase in demand for new housing.

Streamlined Operations: In order for our company to prosper during this difficult business cycle, we’ve had to sharpen our operations and systems, cut the fat out of our ledgers and operate on thin margins. As a result we are poised to meet our current demand with better processes, improved technology and lower overhead. Those efficiencies translate into lower costs for homebuyers willing to invest in a new-home project today.

If you can look past the headlines and scare tactics, you may realize that in these times, the best time to build a new home may be about to slip away.

In the current economy, it has become fashionable to define "value" as simply the lowest price among new homes. But doing so discounts the value of providing a high level of construction quality, as well as service, before, during, and after your new home is built. This may not be in your family’s best interest.

It’s been said many times… a new home is likely to be the largest single financial investment anyone will ever make. Why, then, would you trust that investment — both financially and in your enjoyment of it — to the lowest price and a limited definition of a home’s value?

As a professional builder, we operate with a different and broader definition of value. We believe value includes a positive building experience for the owner and a sense of confidence and pride about a home’s quality. Value should also consist of a high level of personal service and a commitment to maintaining a relationship built on trust long after the move in date.

Some builders play the low-price game. They narrowly define value as a stripped-down house, built on the cheap, to achieve a cut-rate price. The goal: make a sale and move on. They typically don’t have the staff or systems in place to respond to issues once title is transferred.

Here’s how we define and deliver a higher level of value:

Communication: As professional builders, we listen and respond to our clients’ ambitions and dreams for their new home. We help them define and discover their wants and needs, while working within their budget. We educate them about the complexities of the building process, set realistic expectations and keep them informed about what happens — and why — as their new home takes shape. We seek to be prompt and respectful when we meet to discuss a project. We follow through on promises made and keep our clients informed about a job’s progress.

An Efficient Job Site: Our crews and job site managers follow an agreed-upon schedule and detailed list of specifications that we develop with each client. Materials for a new home are ordered and delivered as needed and on time. We manage and coordinate our trade partners and suppliers toward the common goal of meeting our company’s standards and our clients’ expectations.

Follow-Through: When a new home is finished and we turn over the keys to our clients’, we don’t disappear. We know that it is critical to our clients’ ultimate satisfaction that we continue effective communication while providing thorough and prompt service. When issues crop up — and they always do — we have policies and procedures in place to respond in a timely fashion. We work the problem; we don’t pass the buck. We belong to this community. This is where we’ve chosen to raise our family and we intend to be here for years to come.

We believe our definition of value instills confidence and helps ensure satisfaction. We respect that our clients’ entrust us to deliver a product that only exists on paper and is created before their eyes. It’s a responsibility we take seriously and it’s the cornerstone of what we call value.

Regardless of a home’s size or style, all construction follows a consistent pattern and pace. Excavation and foundation work will be followed by the framing phase, which will be followed by rough mechanical, electrical and plumbing work. As soon as those stages are complete, insulation will be installed. These steps follow each other quickly and are easy to see. The progress is exciting!

But when our crews and subcontractors begin to focus on the interior finishes of a new home, the pace seems to slow down and daily progress is more difficult to follow. To the homeowner, it might seem that we are losing focus or paying less attention to the project. In fact, the opposite is true. The apparent pace of work has slowed because finishing work is much more detailed than the previous stages. We must be more focused and pay more attention to the finishing details.

For example, cutting, building, and fastening the pieces of a complex crown molding profile along the ceiling-wall joint of an upscale kitchen requires several hours of painstaking work by a skilled finish carpenter. Likewise, finishing newly built walls to a smooth, uniform surface is a process that takes multiple cycles of application, drying, sanding, and cleaning to accomplish properly.

There also are more products to install. The number of cabinets, faucets, light fixtures, door handles, and outlet and switch covers in a modern new house continues to increase as homes become larger and more luxurious. To get some sense of that task, count the number of outlets and switch covers in your kitchen and family room alone (or in the whole house, if you’re more ambitious), each of which must be installed by hand before you can move in.

Finally, finish work signals the last stage of the building process. Both we and our homeowners are anxious to finish the job after several weeks of anticipation and hard work, not counting the time spent planning before construction began. It is hard for homeowners to remain patient when the work appears to be moving slowly.

By the very nature of its exacting, hand-applied work, the finishing phase of homebuilding is necessarily slow. That does not mean that the work is being neglected! During this final part of your home construction, remember that we remain focused on the highest quality installation and application of your home’s interior finishes.

There is a ton of information about how to find a builder for your new home. Our monthly newsletter, in fact, is one way we use to impart information about our company in hopes of being a good match for your project.

Unfortunately, most of what you read or hear from non-builder "experts" reduces the decision to numbers, specifically the cost estimates that a few builders provide in a competitive bidding process. To us, basing such an important decision and arguably one of the largest investments of your life on mere numbers is at least incomplete and at worst, a potential nightmare scenario. Frankly, we’d rather not be your builder if your evaluation of our capabilities rests entirely on how much we think it will cost to build your new home.

Instead, we encourage and have found success (read: satisfied clients) by suggesting a different tact. It’s a comprehensive approach that admittedly takes a little more time than just collecting bids, but one that can result in truly finding the right builder for your unique situation and budget.

It starts with identifying what’s "right" for you, a unique definition that requires a solid vision for your project and some personal introspection. For instance, if you are planning to build a large custom home, you should look at builders in your area that specialize in and have a track record of building those types of homes.

Narrow that list by investigating each builder’s website, calling their references, the Better Business Bureau, or your local building association chapter.

Based on your current personal and professional relationships, consider the types of personalities you like and respond to best. You’ll probably spend more time with your builder over the next several months than almost anyone else.

You won’t know if you’re ‘compatible’ until you meet face-to-face. If you’re confident in one builder, either from your research or a strong referral, you may not feel the need to meet with any other candidates. But if you are truly starting your search from scratch, without a referral from a trusted source, we suggest you develop a short list of 3-4 builders and invite them to make a presentation in your home or their office — as much to glean their methods as to gauge compatibility.

At those meetings, be open and honest about your project. If you have a set of architectural plans, show them. Request that each candidate bring photos of projects that are similar to yours in style and size. Inquire about how they define "quality" construction and how comfortable they are about green building … if that’s something you care about.

Finally, ask the builder (or builders) about their financial stability and, in turn, share your project budget and financial plan. There’s no sense in trying to forge a good working relationship if you demand a builder’s financial status but won’t be forthcoming about what you can afford and how you’ll pay for your new home.

Once you find a builder that’s earned your confidence in their skills, financial stability, understanding of your project, and (most important) their ability to communicate with you, it’s time to refine and sign a contract and get your builder involved in the project as soon as possible. Having a builder on the team early helps ensure that everyone is moving in the same direction and toward the same goal of realizing the home you envision.

Marshall Durrett’s love of architecture drives him to build one-of-a-kind homes that differentiate themselves in a competitive market.

by Jennifer McDermitt

One of the most challenging aspects of choosing a career is balancing passion with practicality. Sometimes, what we love doesn’t always translate into what we need in order to survive. Working for a top-tier semi-custom builder right out of college, Durrett was able to earn a decent income, but he desired something more.

“I started out in the architecture program for my undergrad degree, but I switched to development and construction in grad school because I felt like it was better suited to my strengths and interests,” he admitted. “However, I always retained my love of the design process and hoped to incorporate that into my career.”

Finding the Right Balance

Durrett was born and raised in Sugar Land, Texas, and began his career in construction by working at a young age for his dad’s commercial construction company. Durrett enjoyed working in construction and continued to do so throughout high school and college, returning home on breaks to learn more about the industry and help his father.

After high school, Durrett attended Texas A&M University, where he completed his undergraduate degree in environmental design, as well as a dual master’s degree in land development and construction management. After completing his degrees, Durrett moved to Austin to work with a national homebuilder who specialized in subdivision development and high-end luxury homes.

Durrett’s natural ability, job skills and education helped him quickly work his way from assistant project manager to project manager. As project manager overseeing the development of two large Westlake subdivisions, he was involved in every facet of the project — from land development and construction operations to marketing, sales, human resources, and financial reporting. Durrett enjoyed project management, but it was during this time that he realized his interests lie elsewhere.

“I loved what I was doing, but I realized that I could build one or two custom homes a year the way I wanted to and make a decent living,” he said.

Durrett launched Durrett Interests in early 2001 with the dream of creating a custom home company that blends architectural design with livable features.

A Fresh Point of View

Like anything, there are positives and negatives to being a young person in the industry. The positive side is the fact that Durrett grew up in the world of technology, which he has incorporated into his business. Durrett uses a Web-based software program that allows for online scheduling and calendar, document and photo sharing, change orders and selection approvals, warranty management, and e-mail and direct text messaging. Customers love the level of communication and process transparency possible with this program.

“It really takes project management to a new level,” said Durrett. “My customers, employees and subcontractors have immediate access to the project and are kept informed every step of the way.”

The downside to Durrett’s youth is establishing credibility, but he credits his association involvement, and community involvement, as key to his success in doing so.

“I learned about the software program through the National Association of Home Builders 20 Clubs Program, which dramatically changed my business,” he said. “I’ve also learned so much and made so many connections through state and local association events and meetings.”

Durrett is a member of the Texas Association of Builders and HBA of Greater Austin, where he serves as President-Elect and is very involved with the Custom Builders Council. In addition, Durrett and his wife Beth are chairs of the Dell Children’s Medical Center’s annual fundraising gala.

Surviving the Storm

Economically, Durrett started his business during a challenging time of the tech bust, but through his education, association involvement and savvy business skills, he has been able to endure.

“We are building about three to five homes a year right now, but we are always looking to grow,” he said.

One of the keys to Durrett’s success is partnering with architects to give his customers unique designs for their custom homes. He said, “They refer business to us and we do the same, which has been great.”

The staff of Durrett Interests includes two project managers, who also serve as superintendents, and an office manager. To further diversify his business, Durrett started building multifamily projects about three years ago as a separate interest company.

“It has been challenging the last few years, as it is with everyone, but thankfully we are very good at accurately estimating our custom homes to remain competitive,” said Durrett. “Lately, we are seeing an increase in interest, and we’ve been doing a lot of bidding, so that is encouraging.”

Riding the highs and lows of the industry is worth it to Durrett. “It sounds cliché, but I really enjoy seeing the fruit of my labor and knowing that I helped build a community,” he said. “There’s really nothing like driving by a home you’ve built and knowing that you had a part in something that is going to be there for a very long time.”

Economic hard times or not, new homes are still being built across the country and in our community. But housing industry and new-home style ‘experts’ have noted a change in how people are approaching those projects. The trend seems to be toward more conservative and value-oriented choices.

We’ve been paying attention to those trends. We are committed to be responsive to the needs of our homebuyers by being prepared to help make design selections or suggestions for their new home. As you read this list, keep in mind that our clients’ specific and unique wants and desires trump any trend. Consider the following as observations. They are not intended as mandates.

A few of the primary themes we’ve noticed include:

• People are looking for American made finishes and quality products that will last longer and reduce energy and resource use. Homeowners want to lessen ongoing maintenance and replacement costs.

• Given that higher-quality and resource-efficient materials and products may cost more, consumers are gravitating toward "minimalist" design schemes and a conservative color palette accented with a few bright, bold accessories.

• We like our technology! New homes are a great way to accommodate greater and more convenient access to it — namely, by providing an ample amount of wiring and cable (and multiple outlets) to plug in and recharge mobile gadgets.

• Regardless of square footage, we see a call for greater storage capacity. Modular organizing systems for closets and garages expand the usable space of those areas. We’ve also investigated the need for an electronic "clutter closet" near the most-used entry door (sometimes from the garage) to hold — and perhaps recharge — a variety of electronic devices in a convenient, central location.

• Grey is the new white … at least according to some style experts. Grey-stained wood and fabrics represents the "back to basics" trend of the new economy.

• Though not as opulent or outfitted as they were a few years back, outdoor areas remain a popular way to extend usable living space.

• Home offices continue to be in demand, accommodating in-home businesses or telecommuting trends.

• One thing that seems to be on the decline: a home theater, at least as a dedicated room within a house.

Reports indicate that buyers of new homes and other consumer goods have altered their value systems toward more conservative, durable and space and resource-efficient products. We’re keeping close tabs on those trends to meet our clients’ needs.

You may have heard the term "customization" in your research for your new home. It’s a word that’s typically used to describe the process of making alterations to the floor plan or exterior appearance of a home so that it reflects your particular tastes, current lifestyle, and location.

But there’s a more subtle yet equally important variation on that term that’s emerging within the home design and building communities. Simply, that new homes today are — by design — better able to adapt to the changing needs of their owners after they’ve moved in and for years to come.

This kind of customization has its roots in areas like the Great Room and so-called "flex" spaces that many builders offer these days. But true customization requires a more thoughtful approach to the floor plan, materials choices, and future lifestyle changes than simply a room or two that allow some flexibility in their use.

Obviously, rooms like the kitchen and bathrooms are dedicated spaces. But there’s no reason that a dining room can’t eventually become a home office, then switch back or become something else down the road, depending on what the family wants and needs.

More dramatically, consider a back room — properly designed — that could eventually evolve from a simple bedroom into a family or TV room, a home office, a rental apartment, or a first-floor master suite as the owners age and tire of climbing stairs to their bedroom.

Similarly, a seasonal or long-term storage area adjacent to a second-floor master suite could, over time and if properly designed, become another bedroom or swap with the master bedroom, leaving the former as an upstairs family room or office; the space could also become a private sitting room or home gym for the owners.

These examples are not only practical, but generally inexpensive to provide … if your builder has the forethought to "rough in" plumbing and other mechanical systems. This level of customization could set the stage for a small kitchen and a private entry to serve as a future rental apartment. Another option: leave sufficient room for a staircase or design the roof frame to accommodate skylights or dormer windows to finish an upstairs area adjacent to the master suite.

The benefits of being able to "customize" a home you already live in are inspiring. As much as we want to build new homes (it is our business, after all), we also like the concept of creating communities of people that are able to live in their homes longer and build tight neighborhood bonds — which proper design and planning allows.

We also like providing homes that serve our clients now and in the future, reducing their on-going maintenance and extensive remodeling costs. This type of ‘built-in’ flexibility also helps make the house easier to sell when the owners are ready to move on to another new home.

Finally, given the current economy and changes in construction and mortgage lending that has limited the ability to buy and sell homes quickly, we recognize and respect that families are looking for homes that they can enjoy over a longer period of time.

This kind of "customization" works best in new homes. As builders, we can direct the floor plan and construction process from the beginning to accommodate your family’s changing lifestyle needs.

A question we get all the time is "what’s your price per square foot?" The perception (or presumption), we assume, is that if you wanted to add or subtract a few square feet for whatever reason, you simply add or subtract that amount per foot from the price or cost of the house.

Simply, in our business, it doesn’t work that way. For us, it’s an impossible question to answer without a lot more information and detail, and one that can only be derived once the house is finished and all costs have been accounted for. Before that, it’s akin to asking, "How much does a vacation cost?" without first knowing where and for how long you plan to go, and by what mode of transportation, among other considerations.

The fact is, the details (and therefore cost) of every house — even those built on speculation by large-volume builders — is different, and the cost of your house is entirely up to you, not your builder. Only you know how much you can afford and what you want in your new home. It’s our job to apply our expertise and experience to finely detail your wants and needs and then build a home that meets (or ideally exceeds) those expectations while remaining within your budget.

That’s why it is so important to determine and then share your budget with us from the first moment you select us to build your home. Budget information should precede any talk of contracts or actual construction. Using the vacation analogy, we are like a travel agent working with you to plan a trip.

Still, the square-foot cost question persists. So, it might be helpful to understand what goes into or affects the cost (or ultimate price) of a new home to gain a better perspective on the question.

For instance, the costs of similarly sized homes can vary considerably due to their location (and even size and shape of the lot within the same neighborhood), the outline of the building, the type of and complexity of the foundation and roof, and many other construction and design characteristics that are not directly related to the square footage of the house.

In addition, costs including development impact fees and permits, or state and municipality mandated code requirements, can add from a few thousand to tens of thousands of dollars to the ultimate cost of a new home, regardless of size. Labor and material costs also can vary substantially based upon the time of year, availability and demand of building materials and workers, weather conditions, and the complexity of the project.

The list of variables goes on, and we’re happy to discuss them with you and explain how they might impact the cost of your new home. But, in our view, it’s short-sighted to ask us up-front what our homes cost per square foot, and certainly to base one of the most important decisions of your life on that metric alone.

Better, we think, to get a full understanding of our process and expertise and marry those skills with what you can afford and want and need in a new home to achieve your goals.