3 Red Flags That Mean You Should RUN From a Builder

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Okay. So today I’m going to be chatting to you about three red flags. When you’re looking for a builder, we’re going to jump straight into it. It’s going to be super quick episode, really straight to the point. About three red flags you need to look out for. If you see one of these flags run the opposite way.

So the first one that I commonly see, and I get a lot of people when they come chatting to me and they ask if, is this okay? Is paying a builder or like a sales consultant slash builder. A two to three grand deposit to see your design request and your sketch. Red flag. What this is, is this is your preliminary deposit and your prelim paperwork.

They’re trying to get you into your prelim paperwork and pay your deposit to see your sketch. This is done the other way around. You should be able to see your sketch, quote, your spec, the price and everything before you pay any money to a builder. Do not pay any money to a builder until you have seen your floor plan, you’ve made changes.

You’re happy with it. You’re happy with the spec, the inclusions, the quote, and you’re feeling confident and you’re ready to engage that builder. Do not pay any money to see a design. You will not get that back. Your builder deposits are non refundable. Different when you’re looking at land. Land deposits are refundable based on subject to finance.

So if your finance doesn’t go through, you get your land deposit back. Your builder’s deposit does not get refunded because the builder is doing work on your job to get it to that point. You know, they’ve spent drafting, estimating ordering reports, bits and pieces like that. That’s what that initial deposit and security is for.

So they can prepare your working drawings, do your site survey, do your engineering, get all that ready. For you to have your building contract, but you need to pay the money and sign the prelim to do that, to start that process, to get your building contract, which is what your bank needs for finance. Gone on a bit of a tangent here, but basically do not pay a builder any money, any deposit to see a design.

You should be able to custom design as many times as you need to. And a lot of consultants, you know, and a lot of builders, you will do designs and make some changes, but the more changes you make, the more reluctant they are to work on your job because You can just walk away, you know, so it’s really important to be able to work with someone, you know, and you trust to be able to make those changes to your home so that your plan is right.

And this is going to kind of lead me into like the next red flag, which is sales rep or a builder telling you, Oh yeah, you can just make that change at pre start. Don’t worry about it with structural changes. You cannot make structural changes once you’ve signed off on your plans. And your building contract, you cannot make structural changes at pre start one, it’s going to cost you a lot of money to most builders will say no.

So especially you need to make sure you get your design right at the front with your structure. So your windows, your roof, your wall, your doors. Right before you sign off, because you cannot change this later. So at the start, make as many changes as you need to, get the design right, especially with your structure.

And do not listen to anyone telling you, Oh yep, you can change that at pre start, just sign up today and we’ll worry about that later. Immediate red flag. Run the opposite way because you’re going to sign and it’s going to go in the system. You’re going to get to pre start and then the pre start consultant is going to tell you, Oh no, you can’t do that.

We’re at pre start. We’ve already ordered engineering and energy, et cetera, all your reports. We can’t make any structural changes now because those structural changes affects those things, which is why, and for builders to do things in a timely matter, they start, you know, doing your building permit and bits and pieces beforehand because you have signed off on your structure.

So changing that blows out your timeline. It’s spent, you spend more money on it. And that’s why builders, they don’t do it because they’re also trying to be. efficient and timely to get you through pre construction into construction. Red flag number three is not feeling comfortable with your builder or your sales consultant.

You are with them for 18 months, minimum, minimum 18 months, you know, four to five months in pre construction, 12 months construction might be just under. You need to be comfortable to be asking questions, doing your revisions. What is this? I need clarity on this. I have a question here. I don’t understand this.

If you are not comfortable to ask that, or you’re not feeling comfortable in the initial stages, It’s not going to get any better over the time of construction. You know, there’s a lot of things to do and moving parts in building. And there’s a lot to grasp and understand, especially as a first time builder, you need to feel comfortable and confident in your consultant, in your broker, in your rep, in your builder, to be able to ask those questions.

And, you know, if they’re making you. Sign on the dotted line on the first day you’ve met them, or they won their deposit, or they won’t make any changes, or they’re telling you to make structural changes at pre start. All those things are red flags, so run the opposite way, you know, walk the opposite way.

Whatever you want to do, you need to feel confident in your builder and don’t get sucked into Those things because that’s what usually ends up nine times out of ten then ending up in a disaster because you haven’t fully understood the Process, but you also haven’t asked the questions because you haven’t felt comfortable So you really need to ask the questions and you really need to feel comfortable to be able to ask those questions So you have a good understanding of the process which will minimize stress mistakes, money, wasting money, those kinds of things.

So they are my three builder red flags. Hopefully that’s helped point out a few things. If that happens to you, give me a call, book in the link below, have a discovery call. Let’s have a chat. I’ll see how I can help you. If you’re unsure about something, give me a call. Let’s have a chat. And I can say, you know, that looks normal.

It’s all good. Don’t panic too much or. Red flag, you know, maybe think about these options.  Thank you so much for tuning in to the home building like a boss podcast. I hope you enjoyed today’s episode and learn something new. Remember, you’ve got this and I’ve got your back until next time. Stay inspired, stay informed and stay confident on your building journey.

I can’t wait to chat with you on the next episode.  Don’t forget to check out the show notes for more information and free resources. If you haven’t already. hit that subscribe button so you never miss an episode of the home building like a boss podcast