How Do Other Builders Make Sure a Client Has Sufficient Funding?
Hi all! Hope this finds you well. I am a builder in SW Colorado who does everything from small remodels up to 5mm custom homes depending on the needs of the clients. In our area we have to do it all!
We are running in to a trend with several of our last clients wherein we vet the client and project, talk about costs, and go under contract with the client, but the client brings in some magical thinking and doesn’t have the financial resources to finish the project. As much as we front load things, do budgets or estimates, and speak with our client clearly, it seems to be happening more and more.
I’m curious if other builders have a strategy to make sure clients have the resources they say they do, in order to complete the project. I’m open to any and all ideas, creative or not!
Thank you!
Replies
This occurs b/4 or after the estimate (proposal) is presented?
And the magical thinking is what?
Thanks.
You can do a credit check. If you have dotted your i s and crossed all your ts you have legal resources depending on what state you’re in. In California you can file a mechanic’s lien and basically own the house. If you’re not legal you are pretty much screwed. Small claims court is an option.