Rachel Bashford
Rachel Bashford
Consumer Expert

For many Americans, building a custom home is a lifelong dream. However, with the current shortage of available homes on the market, more people are choosing to work with home-building companies to bring their vision to life. To navigate this process effectively, checking home builder reviews can ensure a seamless and prosperous experience during your construction project. 

It is more important than ever to ensure the company you choose is reputable and will create the house you’ve always wanted. With this in mind, PissedConsumer.com has a solid base of more than 300 home builders and more than 8,100 consumer reviews about home building experiences as of August 2024.

Key Insights:

  • Homeowners are facing increased costs in building materials and construction labor due to rising inflation. Q2 2024 data highlights a 1.12% increase in construction costs over the previous quarter. 
  • Hidden costs during the home building process can create an increase in the overall expenses for the entire building project. 
  • Examining home builder reviews, budgeting and having your finances in place before the building project begins ensures you are ready to avoid construction issues.

Thoroughly researching potential home building companies and their customers’ experiences before you commit will help you make an informed decision. As Maureen McDermut, a realtor with Sotheby’s International-Montecito, states:

Be sure to ask if the builder is licensed and insured, and ask for proof of both, as there are many that will attempt to save money by forgoing the usual licensing processes.

Home Building Is on the Rise

Over the last year there have been changes in the home building market that are squeezing home owner budgets. The latest US home building statistics reveal that spending on new private residential construction has seen a significant rise over the past decade, growing from $247 billion in 2011 to $918 billion in 2022.

It’s notable that recent data suggests the US housing market does not have enough homes for everyone. According to the latest figures, the country could potentially be short of 4.5  million homes. Industry experts suggest that reduced numbers of house building projects in recent years have contributed to this situation.

Property expert and publisherL.A. ‘Tony’ Kovach, says that he believes “an extreme shortage of housing is pressing people into the market” and this is driving US home building numbers upwards. 

US homeowners and home builders are dealing with elevated mortgage rates through 2023. Figures published in August demonstrate a near 7% rate on 30-year fixed rate mortgages, which is restricting home owners. 

Ty Wilde, an experienced Utah realtor, comments on the home building process: 

The only option for home buyers is new home construction. This is why homebuilder confidence has been increasing, despite these higher rates.

With rising demand in the housing market for home building companies, it’s a good time to consider the problems that homeowners may have to navigate, such as construction issues or supply chain friction. 

This is where home builder reviews on customer feedback websites can support consumers to discover information about relevant companies. An illustration is a recent complaint that explains issues with home building company Lennar:

Due to the poor construction at the slab and the stucco, my house started leaking to my master bedroom closet and no one from the Lennar home figured out what's causing the leak 

Home building issues

What Are the Most Common Construction Issues?

Consumers often face a variety of construction issues when they contract a home building company. Gregg Cantor, President and CEO Murray Lampert Design, Build Remodel, says that one of the most common problem is:

lack of integration with architectural, structural engineering, interior design and building. This causes field changes, delays and misunderstandings that lead to the escalation of costs.

Finding a trustworthy home builder is high up on the list of consumer priorities. It’s a smart idea to carefully research your potential company and take a look at the competition too. As Lee Calisti, a strategic construction advisor at Real Estate Bees, asserts it is appropriate to

ask financial questions to ensure the builder is financially stable and will not run into problems during the build. How many projects do you have running currently? Is that normal? … No one wants their project to finance incomplete projects for their builder.

Being cautious and safely selecting the best possible choice could help you avoid the following common home building issues. 

Substandard Components

The painful reality with construction issues is that you can’t always predict if or when they will happen. But being aware of the potential pitfalls can help you plan and prepare for future problems and try to swerve them.

Customers can often face a myriad of house building issues, such as:

  • Poor roof installation with loose tiles or leaks into the house. 
  • Burst pipes that may cause flooding or damp and mold growth.
  • Issues with walls and floors being uneven or uninsulated. 
  • Poorly-fitted windows and doors that let in draughts and lack proper sealants. 

The fitting of internal tiles can also be an issue with home building companies. In the Pulte Homes review, one customer has reported a problem they had when they purchased a home in 2023. 

During their blue tape walkthrough, the customers noticed 12 hollow and uneven floor tiles and highlighted these to the company. These were replaced, but the customers immediately saw that the new tiles  "were uneven, the grout didn't match, and the adjoining tiles were loose."

The customer is still waiting for the problem to be resolved. Such Pulte Homes complaints have rated the company 1.6 out of possible stars. 

Service issues

It’s not only construction concerns that consumers are sharing in online reviews, but they are also reporting problems with post-build services. Home builder complaints may stretch past completion of the home into service areas that can cause consumers a real headache.

Challenges with post-sale service

Customers need to be aware that it may be difficult to obtain post-purchase assistance with some companies, even if they have the right to this service. These difficulties can occur with larger companies as well as smaller ones. One Richmond American Homes complaint details how the customer faced numerous issues, including a crumbling foundation and unfinished construction, and has struggled to get any of these problems resolved:

Richmond Homes has refused to help us. We made a horrible mistake by signing the contract in the first place…They lie and lie and then they lie some more.

Richmond American Homes reviews gave the company 1.3 stars* out of 5, with reviewers stating that the poor quality was a major issue.

Issues with construction warranty

Warranty issues also cause concern amongst consumers who contract home building companies. Essentially, construction warranty is supposed to ensure that the home builder will correct any defects or failures in building structure.

Some consumers have commented in home builder reviews that warranties are not honored by their contractor. One consumer in their Dr Horton review shares that experience with their newly bought home was pretty disappointing compared to all previous positive purchases from the company. 

home building warranty claims

Despite having evidence of the poor workmanship, D.R. Horton refused to fully cover the repairs under warranty. The customer was limited to three warranty claims per year, which made them hesitant to report non-emergency issues earlier. D.R. Horton only agreed to partially fix the retaining wall and refused to repair the fence, blaming the homeowner for not reporting the issue sooner 

Horton doesnt want to take any responsibility for the fence, just partial responsibility for the retaining wall…D.R. Horton wants to hide and pretend this was never an issue, despite us having video, text messages, picture evidence and even a neighbors testimonial...

Construction customer service

You might expect with something as important as a home build, customer service would be responsive and helpful. Not all home building companies are supporting their customers effectively or listening to their concerns. 

Modal Living has also experienced negative consumer reviews about product quality and construction customer service. An unhappy consumer recalls in their Modal Living review that when they complained about “substandard building materials,” customer service:

Has been appalling, with no regard for the inconvenience and stress that I have been facing.

tips to avoid construction issues

Another unhappy Champion Home Builders consumer shares that their  newly purchased house “has so many defects and installation issues,” what led to numerous problems, such as a heavy fan falling from the ceiling one day. However, their interaction with customer service in attempts to solve the issue left them even more frustrated:

We know because we live here this nightmare will never be over. The customer service person Tiffany makes us feel like this is our issue.

How to Avoid Construction Issues

The best way to try and ensure a smooth sail through a home construction project is to keep informed and stay alert to anything that seems unusual or unexpected. If you’re not happy with your build, then keeping evidence of what has happened and clearly communicating with your home building company are vital in problem resolution. 

Follow these tips to avoid construction issues. 

1. Plan ahead

In the home building process, preparation is fundamental. As we've already mentioned, common construction issues, such as poorly built components and construction warranties, may happen frequently. Besides, potential homeowners may not accurately assess their financial capabilities, leading them to costly mistakes. 

However, these hazards can be avoided with thoughtful preparation and expert advice. Lee Calisti is confident that:

…before you commit to building a house, you must adequately research and come to terms with where costs are today…In the last several years, we have seen projects that can easily be 30% to 50% over budget, which knocks most people out of their plans. Hoping it will come in on budget doesn't work.

Maureen McDermut also advises planning ahead for potential delays and leaving budget room for any increases in construction materials. She recommends:

Interview several builders, both national and local to get an idea of what is possible. Create a pros and cons list and think through the decision. Overall, if you are on a tight or fixed deadline to move, then building a home might not be the best option for you.

2. Hire a housing inspector

If you want to ensure the structural integrity and safety of your future home, hiring a housing inspector is one of the essential steps. These specialists assist in identifying potential issues in the home building process that you may overlook. They act as a guarantee that your dream home will be built to the highest standard of quality and craftsmanship. L. A. 'Tony' Kovach states:

The investment can be modest, especially compared to the risk of not having an inspection done. Besides, mortgage companies will routinely want an inspection to protect both the buyer and their own interests.

3. Examine construction reviews

Finding a home builder that will deliver your project on time is a challenge. Consulting home builder reviews through online sites can support your search and help you gain clarity over your final choice. If potential companies have plenty of home builder complaints and negative online reviews, then it’s best to avoid them. 

4. Talk through concerns

Effective communication is crucial for avoiding home building issues. It affects the project flow and keeps participants informed of updates, new tasks, and timelines. Ty Wilde advises:

Keep an eye on your home throughout the construction process. Send pictures or videos to the builders agent if you have questions about something you see in your home.

And L. A. 'Tony' Kovach adds:

On small purchases and large, just having frank and ‘professional’ communications will routinely solve the problem. Document everything as if you were going to need it in court. Make notes, take photos, shoot videos. Save it all.

5. Contact the home builders’ association

If you need more information before or during the home building process, you can find lots of advice with the NAHB, the National Association of Home Builders. There are checklists to help if you want to start the process of finding a home builder that’s right for you. 

If you do have a negative experience with a home builder company, then there are advisory services to help resolve your home builder issues. It’s essential to know how to protect your rights as a home owner and gather support to solve any problems. 

Protect Your Home Building Process

There is no better place than home, isn’t it? However, the process of its construction might be too challenging and overshadow all positive emotions. To avoid this, being proactive and aware of different construction issues is vital. Not only can it help to prevent such problems, but also fix them rapidly if needed. 

Keep a close watch on your budget, stick to your home buying checklist, and don’t be afraid to voice your concerns if something doesn’t look right. If you do run into issues, one of the great ways to help others avoid the same pitfalls is to leave a review. Your feedback can make a real difference for future homebuyers, so don’t hesitate to share your experiences. 

Remember, the more informed you are, the smoother your home-building journey will be.

*The company ratings on the PissedConsumer website are calculated using a mathematical algorithm that evaluates the information in the company’s profile. The algorithm parameters are: users’ rating, the number of resolved issues, the number of company responses and more. The PissedConsumer algorithm is also subject to change in the future.

 

Legal disclaimers:

  1. While every effort has been made to ensure the accuracy of this publication, it is not intended to provide any legal, medical, accounting, investment or any other professional advice as individual cases may vary and should be discussed with a corresponding expert and/or an attorney.
  2. All or some image copyright belongs to the original owner(s). No copyright infringement intended.

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