Real Estate Investing

Top 10 Signs of When A Builder Goes Bad

home-construction.jpgMost builders are just amazing.  They are highly skilled in both the design concept and construction of a home.  The devil’s in the details, of course, so I always look to see if windows are framed and if there’s any decorative trim.  However, sometimes builders really stink.  Here are some signs for when you want to steer clear of a bad builder:

  1. The neighbor has a banner hanging from an upstairs window that says, “Call me before you buy a house from [builder name deleted]!”
  2. Builder will not return phone calls.
  3. Punch list is not completed prior to closing. (NOTE: Never close without punch list completed!)
  4. Six months later, punch list still not completed, though contract clearly states that conditions of contract will survive closing.
  5. You notice mailbox missing after closing.  Builder says, “That doesn’t come with the house!”
  6. Builder does not have or loses membership with the local homebuilders association.
  7. Builder argues that a 2-10 home warranty is worthless.
  8. Builder is in bad standing with the Better Business Bureau.
  9. Builder designs own homes and refuses to alter anything (floorplans, move electrical outlets, change flooring, etc.) because, “If that buyer don’t like it, somebody else will.”
  10. Even though agent he has hired is on duty at model home, builder personally seeks out potential buyers driving through neighborhood to negotiate without agent so he doesn’t have to pay a commission.

My colleagues and I have had such an easy time writing this, here are some bonus “signs” of a builder gone bad.

  1. Builder is in bankruptcy.
  2. Builder/agent’s office raided by Federal Agents.
  3. Home built on top of underground spring, buried dump truck (personal landfill), or possible sinkhole with intention that no one will ever know.
  4. Home comes with copy of  liability release form releasing county from future legal actions by builder because of faulty construction (given with certificate of occupancy immediately prior to closing).

Watch for more Top 10 lists coming soon.  Who do you want to see?

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