10 Red Flags for When Hiring a Custom Home Builder

Real Estate

If any of these situations arise, they are worth looking into immediately:


1) The builder requires a large initial down payments or deposits prior to the commencement of
work.
3) The stated price is too good to be true and is significantly lower than other received bids.
4) There is an unclear work history.
5) The builder will not provide a complete estimate.
6) There is a heavy reliance on allowances for final bid.
7) High-pressure sales tactics are employed.
8) Multiple unresolved claims from the Contractor’s Board exist.
9) Lack of insurance.
10) The builder says your home will be used for marketing purposes so you will be given a
special low rate.
11) No references are furnished or are unable be verified.
12) The builder is unwilling to provide evidence of certificates of Insurance for General Liability
or Workers Compensation.
13) The builder offers a lump sum or very general estimate lacking detail.


Finding and choosing the right custom home builder for your project may be difficult and
possibly awkward at times but you are embarking the biggest purchase of your life so you need
to be confident in your decision. Do your homework and understand the process and you will
reap the rewards with a beautiful home built to your specifications.