Warning signs to watch for
Most house and land packages are legitimate, but some practices should raise concerns. Here are the red flags that experienced buyers watch for.
Sales tactics like 'this price expires tonight' or 'someone else is looking at this block' are designed to prevent you thinking clearly. Legitimate deals don't evaporate overnight.
What to do: Walk away from high-pressure situations. Good builders don't need to pressure you.
If they'll only discuss pricing verbally or give you ballpark figures without detailed breakdowns, something's wrong.
What to do: Insist on detailed written quotes with full inclusions lists. No exceptions.
Answers like 'it's all included' or 'standard premium inclusions' without specifics hide what you're actually getting.
What to do: Ask for the complete specifications document. Every item should be listed.
If they only want to show you display homes with all the upgrades, they might be hiding how basic the standard product is.
What to do: Ask to see a completed home with standard inclusions, or a home under construction.
If one builder is $50K cheaper than every competitor for similar specs, either the specs aren't similar or something's missing.
What to do: Compare like-for-like inclusions. Cheap base prices often mean expensive 'essential' upgrades.
Demanding large deposits before contracts are exchanged or asking for cash payments is a serious warning sign.
What to do: Standard deposits are 5% on signing. Question anything more or any unusual payment requests.
Cost-plus contracts put all the risk on you. If the builder won't offer fixed pricing, they may be uncertain about their own costs.
What to do: Always prefer fixed-price contracts. You should know the total cost before committing.
If they're slow to respond, avoid questions, or seem disorganised during sales, it will only get worse during construction.
What to do: How they treat you as a potential buyer reflects how they'll treat you as a client.
Refusing to provide past client references or let you visit a current construction site suggests they have something to hide.
What to do: Good builders are proud of their work and happy to show it off.
Professional builders focus on their own strengths, not tearing down others.
What to do: Focus on facts and inclusions, not sales tactics based on fear.
Get independent advice before you commit to any house and land package.
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