How much concern regarding a builder reputation when BBB rating is "F"?

Status: Open
Nov 11, 2016 Views7,579 Answer a Question

I'm looking to buy a new home. I've found a community I like but upon reviewing BBB profile noted that builder has F rating with high number of complaints (some unresolved).

www.bbb.org/houston/business-reviews/home-builders/long-lake-ltd-in-houston-tx-80531

Asked by
Consumer
Categories:
Home Builders
About 6 years ago
Hello Kenneth,

Why bother when you are seeing bad rating and unresolved issues with that builder? The best first alternate if you really want a house in that area is buy just a lot and get your own builder. There are many builders out there who will build on your lot the way you want it.

The second option is to reach out to a realtor who can help you find houses in neighborhood subdivisions.

Chris
Coldwell Bankers
www.ChrisRealEstatePro.com
832.859.8698

About 7 years ago
Being a former small business owner, BBB is a service to consumers but also a business in itself. Business owners have the ability to buy a membership and promote themselves through BBB. However, seeing a complaint history of almost 50 complaints is extremely concerning. Unfortunately, builders do not have a "Board" they have to answer to. They do not have the ability to become licensed by the State of Texas as most professionals do. I would be very weary of any business, much less a builder that has this reputation. Reputation is all that a builder has. The best judge of an unknown builder is to see how active they are in their industry- for example, if they are a member of a builder's association or promote and learn within their industry. We have a very active Greater Houston Builder's Association, which offers certifications and many resources for builders that want to better themselves. I would start there and visit the local county clerk to view any disputes and outcomes. Always trust your instinct! Good luck!
source:
www.ghba.org\n
About 7 years ago
Trusting your gut feeling is not necessarily a bad thing. Ratings should definitely be taken into account. If a price is too good to be true, there is usually a reason. That said, you might also drive the neighborhood and if someone is out in their yard, stop and ask them about their experience. How they like their home? Have they experienced any issues with the builder? Issues with their home?

With any new construction, enlist the assistance of a Realtor. As a buyer it costs you nothing and allows you a representative looking out for your interests in the transaction. During the build, hire a home inspector. They can come out a three different times during the build 1)prior to the foundation being poured 2) prior to drywall being hung to make sure everything behind the walls is correct 3)just prior to your final walk through as a separate set of eyes to look for any deficiencies. A good builder will not balk at having a home inspector as part of the process. They will generally take their findings and correct them. Yes it costs you money, but in the end it could save you thousands.
About 7 years ago
Having worked as a new home sales counselor, I would like to give my two cents worth. In short...ratings with the Better Business Bureau do matter. A poor rating with the BBB is indicative of the builder not responding to or resolving complaints with the BBB. Either they are ignoring the complaint or they are failing to respond to the BBB's satisfaction. It is a good indication that they may not respond favorably to any issues you may have with them as well. Fortunately, most builders in the greater Houston area have decent ratings. The price may be attractive at first, but as with most things...if it seems too good to be true, it probably is. If I can be of assistance to you, please call me at 832-969-6699.
About 7 years ago
In my opinion, you should not buy with them. Their price might seem low in the begining but it will quickly increase as they start charging you for every single item that should have been standard to start with. There is also the warranty issue as you might have to fight for them to honor their warranty contract after you buy the house (for things that stop working the first yeqr or 2). In any case, you absolutely need a realtor to fight and negociate for you (and the builder will pay for him). Feel free to give me a call if you want to discuss further. Francois: 713-397-8857
About 7 years ago
Hi Kenneth. I have assisted 2 clients build and buy their homes. Both times, the "process" of building was not pleasant. Their way or the highway. Very strict regarding financing. But, I have to admit they built a decent house! We performed inspections with an inspector we hired and the builder addressed every concern and corrected the problems (which were not many). Later, one of my Buyers got transferred with his job and I listed the one year old home for sale. Sold very quickly and with a little profit. I bet the "issue" is when these Buyers do not have a Realtor helping them and get sideways with the Builder not following the contract. In this lower price range, the Builder sets strict guidelines as they know many young, 1st time Buyers change their mind mid-stream, have expectations of having a custom home, etc. Not sure if the Builder cares about that rating and it does raise a red flag. Key is have a Realtor help you (the Builder will pay their commission) and understand all the facts BEFORE you sign the contract. Let us know if we can help.

Mark McNitt, Bernstein Realty 832-567-4357
About 7 years ago
I'm familiar with that particular builder. You will want to take that rating seriously. Believe me. That rating has been steady for years. Since 2009 and they have not bothered to fix it at all. In my opinion, and this is strictly my opinion; there is a reason why their price per sqft is unbelievable and so low in comparison to others. However, with any builder you want representation. The sales people are sweet, they give you the warm and fuzzy feeling, they dazzle you with a great model, topped off with cookies for the kids. But at the end of the day they represent that builder. Legally, you are entitled to representation as well. Don't be fooled into believing that you are saving money by not having Realtor representation. That myth is false. You need a good negotiator and you need someone who can bring your attention to red flags, or you simply need reassurance that everything in your transaction is going smoothly. If you do decide that this particular builder is the one for you. Just make sure someone has your back and you have plenty of support, knowledge, and resources....LOL not just from Google, that will facilitate you in making the right decisions. But congratulations and good luck on your purchase!

Nelle@TheRealNelleTatum.com
281.995.8608L
About 7 years ago
Hello Kenneth,

I am of the generation where reviews matter big time! From experience long lake ltd is not a good company to work with, so in my opinion the reviews are probably accurate. I will tell you about the experiences I have had. The instances when I dealt with them it was through Postwood, which is one of their builders. They nickle and dime you with everything in the home. With other homes these items would come standard, but with Long lake they charge you per item. For example, the charged one of my clients for electrical sockets. Also they are very strict about closing dates. The problem is that they are also strict and want to charge you over an extra $100 a day if you don't close in time, when many times it is not your fault. Also they changed a clients floor plan with out telling them. We tried to argue that the contract says one thing, but they have alot of clauses to cover themselves. I strongly suggest you listen and heed others peoples advice. If you do decided to go with them just be prepared. I advise my clients of the same things I am telling you, but some don't listen because they really love the house. You have to admit it is a lot of house for the money. If I can offer any additional assistance feel free to email or call me. Also I have dealt with them several times so I can guide you on what to expect and how to protect yourself if you choose to go with them. Ansa@ansawilliams.com or 832-628-0452 www.har.com/ancernettawilliams
About 7 years ago
Kenneth,

It is my opinion and experience that you should generally take ratings and reviews with a grain of salt. Research is by no means a bad thing, but in my opinion it is better served for use as a tool for your own caution as you move forward in your dealings should you choose to do so. It may not be a bad idea to bring it straight to a salesperson's attention and listen to his/her explanation to help you formulate your own opinion. As a former employee of a new home builder, and also having successfully negotiated and facilitated multiple transactions for clients purchasing newly constructed homes as a REALTOR, I am very well versed in new home sales and builder relations. If you would like more information on my personal experience with any particular builders, please feel free to reach out to me by call/text/email anytime!

cody@interohouston.com
832-373-9755
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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