Top 4 Red Flags to Watch Out for Before Hiring a Builder for Your Dream Home


Increasing numbers of people are hiring builders to build their dream house. The United States home builders sector has had an annual growth of up to 2.5% since 2014. In fact, IBIS World reported that in 2019 alone, the industry had generated almost $90 billion in total revenue. Moreover, Statista’s recent survey suggested that there were over 460,000 building permits released for multi-family housing units in the US.

Nevertheless, with a wealth of home builders available in the market across the country, finding the right one that fits your needs and budget can be difficult, especially with the surge of illegitimate contractors nowadays. BuilFBG, a well-established home builder in Houston, mentioned that you need to cautiously screen and pick a builder that is both reputable and provides quality work.

To avoid getting scammed and make sure that every penny you have spent on building your dream house is worth it, you need to arm yourself with the knowledge to discern good custom home builders from the bad ones. Here are four red flags that you need to look out for before choosing a custom home builder.

A small, brand new company

Supporting a newly established builder company is typically a good idea, but clients need to be wary when it comes to the quality of work and work ethic. Since the company is brand new, there is no guarantee that they will provide an excellent or even decent product. 

Considering the fact that home builders, who are in the construction industry, have the highest rate of failure, it is wise to choose well-established companies that have operated for years. 

Clients should do in-depth research to determine the size of the company as well as their years of experience to ensure that they do not do business with a company that could go out of business at any moment. 

Not responsive

Building a home is not an overnight thing and may take several months to complete. Hence, clients need to establish proper relationships and communication with the home builders to ensure that the house construction is going well according to each clients’ tastes.

If the client experiences any difficulty when trying to get in touch with the home builders during the planning phases such as failure to return a call within 24 hours, then the client should move on to the next home builder.

Offer unrealistic promises

Before signing a contract with the home builders, clients need to do their homework to get a rough idea of how the business operates, including the cost of the project and the time of completion. 

Homebuilders that offer the client a lower price and quick delivery sounds too good to be true and might be a scam. Clients should also be wary of contractors that request money upfront before the project has even started.

Lack of license, permits, or insurance

Clients need to make sure that the home builders possess the proper permits and are registered locally to perform the job.

Hiring home builders to construct your home can be quite a daunting task. You need to make sure that you get the best work quality at a fair cost. So, before you go out and sign a contract with home builder companies, make sure that the company is reputable and has been operating for years, is responsive with excellent customer service, and provides realistic offers.


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