One red flag isn’t always a deal-breaker, but each one is a reason to slow down and ask why.

1. A large deposit before any materials are ordered. Ask what it buys and when it turns into delivered material.
2. Vague allowances. “Standard finishes” isn’t a number. Every allowance should have a dollar amount.
3. A discount for cash or for skipping the contract. The contract is your main protection, especially in states without builder licensing.
4. Insurance certificates that only come from the builder. Ask for them from the agent.
5. No license number on the quote in a state that licenses builders.
6. No engineering for the foundation or frame, especially on clay, on the coast, or in snow or seismic areas.
7. No written schedule, or one with no milestones tied to inspections.
8. References who are all current projects, with no finished homes you can visit.
9. Pressure to sign today to hold a price or a start date.

Comparing quotes? Make sure each one covers the same scope: shell only, partial finish or turnkey. Shell vs. turnkey explained.