5 Builder Scams That Could Cost You $25,000 (How to Avoid Them)
Friday, February 14, 2025
The $25,000 mistake most new home buyers make (and how to avoid it)
Think buying a new construction home is as safe as an already existing home? Think again.
Just got off the phone with a client who almost lost $25,000 to a builder. Her crime? The home didn't appraise. Builder's response: "Bring another $40K to closing or forfeit your deposit."
This isn't rare. It's their business model.
Here's how builders are legally robbing buyers (and how to beat them at their own game)
🚨 The 5 Builder Scams That Cost You Everything
1. The "Control The Market" Trap
- They keep building after you buy.
- Set prices that kill your home's value.
- Undercut you when you try to sell.
→ Solution: Buy in final phases only.
2. The "Preferred Lender" Con
What they say: "Use our lender, get $10K in credits!"
What they hide:
- Higher rates that cost you $50K+ over time.
- Hidden fees that eat your "savings."
- Kickbacks they pocket from your loan.
→ Solution: Always get competing quotes.
3. The Deposit Prison
Put down $25K, then:
- Home doesn't appraise? They keep it.
- Loan falls through? They keep it.
- Life emergency? They keep it.
Then they resell YOUR house for more.
→ Solution: Never put down non-refundable deposits.
4. The "Today Only" Lie
"Sign now or lose the deal!"
Reality check: They always have inventory.
→ Solution: Take your time. Get everything in writing.
5. The Appraisal Trap
True story: Southwest pilot lost $15K because:
- Builder priced home at future value.
- Home didn't appraise.
- Builder kept his deposit.
Then laughed about it. (Yes, really)
→ Solution: Get independent appraisal BEFORE signing.
🔥 The Secret Weapon: Spec Homes
Want a new home without getting robbed?
Buy spec homes (already built, unsold inventory).
Why it works:
- Ready now (no delays).
- Builders hate holding inventory.
- You get massive discounts.
- No future value pricing games.
💰 How to Win Against Builders
- Never use their lender without competing quotes.
- Get everything in writing.
- Make all deposits refundable.
- Ignore artificial urgency.
- Buy spec homes when possible.
Want to avoid getting scammed?
Hit reply or book a call: [Schedulewithkeithgo.com]
I'll show you:
- Which builders to avoid.
- How to negotiate killer deals.
- Where to find hidden inventory.
Talk soon,
Keith G.
