Home Real Estate 8 Pro Tips to Avoid Scams When Building a New Home

8 Pro Tips to Avoid Scams When Building a New Home


Building a new home is both an exciting and stressful adventure. On top of all the planning, budgeting, and decisions that must be made during the process, you also need to worry about avoiding scams that can cost you time, money, and peace of mind. To help make sure your construction project goes off without a hitch, below are eight pro tips.

1. Get Everything in Writing

This is the primary pro tip. If a contractor or supplier makes an offer, get it in writing. This document should include a detailed outline of the services and associated costs, so you know what each party expects. Make sure you read through all documents thoroughly before signing anything, and don’t hesitate to ask for clarification if something doesn’t make sense.

2. Pay Attention to Pricing

When building a home, you want the best value for your money. Pay close attention to pricing, and don’t be fooled by contractors offering extremely low services. Not only could this mean that they’re cutting corners on the quality of materials or even skimping on labor, but it also could be a sign of a potential scam.

Do research online to get an idea of the going rate for similar products and services in your area. That way, you’ll better understand what is reasonable, so you can make informed decisions when selecting vendors and contractors.

3. Check References

Before building your new home, check references to avoid scams. Once you have a few potential contractors lined up, reach out and ask for references from previous clients. This can give you an idea of how reliable and trustworthy they are.

If possible, talk to former clients and ask about their experience working with the contractor—also, research by checking if any complaints or negative reviews online are associated with them.

4. Get Everything Inspected

Another great tip to avoid scams while constructing your dream home is to get everything inspected regularly throughout the process. This includes all materials, products, and services that are being used in the construction of your home.

Having an inspector assess the quality of each item will ensure everything is up to standard and not subpar or faulty. Not only will this save you time and money down the line, but it can also help protect your safety by ensuring there aren’t any structural flaws in your new home.

5. Don’t Pay Upfront

When constructing a new home, avoid paying for anything upfront if possible. Instead, opt for a payment plan where you only pay after certain milestones have been met or tasks have been completed. This will give you some control over the process as you can ensure the contractor meets their obligations before dishing out more money.

6. Get Everything Permitted

To ensure your construction project is compliant with local building codes and regulations, get all necessary permits before breaking ground. Not only can this save you from costly fines down the line, but it can also help protect your safety by ensuring the building structure is up to code. Check with your local jurisdiction to see what permits are needed for your project.

7. Know Your Rights as a Homeowner

Be aware of your rights as a homeowner when constructing a new home, and don’t be afraid to speak up if something doesn’t seem right. In addition, look into any warranties associated with products and services being used in the construction of your home, so you know which items will be replaced or fixed should anything go wrong.

Another thing to consider is getting surety bond insurance to protect your interests if a contractor defaults on their payments. This type of insurance will give you peace of mind that your money is being used responsibly and that you won’t be left in the lurch if something goes wrong.

8. Don’t Rush Construction

Finally, don’t rush the construction of your home. While it may be tempting to finish it as quickly as possible, rushing can lead to subpar results and even more costly repairs.

Take your time when constructing a new home to ensure everything is done right and that there aren’t any issues that could come back to haunt you. It’s essential to have realistic expectations and not let your enthusiasm for the project cause you to make mistakes or take shortcuts.


Building a new home can be an exciting and rewarding experience, but it’s important to avoid scams that could put your project—and wallet—at risk. By following these tips when building a new home, you can avoid scams, ensure the building process runs smoothly, and that your dream house is built to meet your expectations.