Scams are all over news headlines. You can hardly spend time online without coming across the next big fraud surprise. The same can happen to those looking to build their own custom homes in Pocono. For every reputable, reliable builder in the area, there are two or three contractors looking to make easy money off unsuspecting, uneducated customers. This is why we wanted to share with you the six builder scams to watch out for.
A quick way for contractors to scam unsuspecting customers is to offer a price for a project that’s way too good to be true. This is not a show of goodwill from the custom home builder to you. This is a red flag for an oncoming scam. Even if the custom home builder you’re working with is unaware of market prices, they will quickly realize, amidst the project, that they’ve grossly underestimated the costs, which leads to resentment and them not doing their best. Watch out for the low price point.
Those trying to scam you with your custom home building project might attempt to rush the process. From first communication to signed contract, they want you to make split-second decisions that should be considered over days, if not weeks.
When researching a given custom home builder, you should be able to find reviews and ask for references. If they have little to none of either, you need to consider a different builder. Also, make sure the references they give are recent and credible, not family members or friends.
A custom home is a complex project. It requires details to be determined at every single step. A custom home builder that is habitually vague with information and explanation is a red flag. Either the builder does not know what they’re doing, or they do not care enough to take the time to invest in you, a paying customer.
You need to vet your custom home builder. Make sure and check the contractor license against what’s online in the county records. Also, make sure their insurance policy number is up to date and valid. Finally, search for liens. You want to know as much as you can, if not all, about the builder you’re going to work with.
When you work with a custom home builder, you may be given allowances to choose certain features for your home so that you stay within your budget but get what you want. If you find that your builder is promising the world to you, but the allowances allotted can only afford inexpensive or low-quality products, revisit the contract or do not work with them.