We are in the midst of a sea change in the building industry, and many small home builders are no longer in the home building business, and some of the large ones have filed for banktruptcy protection. So what do you do if you are planning to build a home? My recommendation is that you find a home builder who not only has an outstanding reputation for building quality homes and who has a reputation for having a great relationship with his clients, but who also is financially strong.
A home builder who has a lot of overhead and who doesn’t have strong financial reserves may be hanging by a thread, but may still be signing contracts with clients. What happens if you are one of those clients, you put down your deposit, and a few months later you learn your builder is filing bankruptcy and your home construction has been put on hold?
There’s not much you can do. Every asset of the builder and his operations are now under the control of a bankruptcy trustee. Who knows what will happen? You house may be finished, or it may not be finished. You may get your money back, or you may not. Scary thought, isn’t it?
I strongly recommend you consider this when you are doing your due diligence to select a strong builder. If you have any questions on this matter, call me at 360-775-5424. I’m Chuck Marunde, and I’d be glad to answer your questions if I can.
Last Updated on September 2, 2019 by Chuck Marunde
Appreciate what you wrote here. I’ve had some experience hiring a builder, and I can say you’ll really do want to do your due diligence before you sign a contract. Do that and you probably take care of everything else.