10 Questions You Must Ask Your Home Builder Before Signing Anything

Choosing a home builder is one of the most consequential decisions of your life. You're trusting someone with hundreds of thousands of dollars and the place where your family will live for years or decades. Yet most buyers sign contracts after only a few conversations.

After 21 years of building custom homes in North Carolina, we've heard plenty of stories from buyers who came to us after bad experiences with other builders. In almost every case, the warning signs were there — they just didn't know which questions to ask.

Here are the 10 questions you should ask every builder before you put pen to paper.

1. Are You Licensed and Insured in North Carolina?

This is the non-negotiable first question. In NC, general contractors must hold a valid license issued by the NC Licensing Board for General Contractors. Ask for their license number and verify it at nclbgc.org. Also confirm they carry:

• General liability insurance (minimum $1M per occurrence)

• Workers' compensation insurance for all employees and subcontractors

If they hesitate, can't provide documentation immediately, or only carry minimal coverage — walk away.

2. What Does Your Contract Include (and What Does It Not)?

Builder contracts vary dramatically. Some are comprehensive and protect both parties clearly. Others are loose documents that leave enormous room for disputes. Before signing, understand:

• What's explicitly included in the contract price?

• What's classified as an allowance (meaning the actual cost may differ)?

• How are change orders handled and priced?

• What are the payment milestones?

• What's the dispute resolution process?

A good builder has nothing to hide in their contract — they'll walk you through it line by line.

3. Who Is My Day-to-Day Point of Contact?

Some builders sell you on the owner or principal, then hand you off to a project manager you've never met. Know upfront: who will you actually be talking to throughout the build? How often will you receive updates? Can you visit the site, and how much access will you have?

4. Can You Show Me Past Projects and Connect Me With Past Clients?

Any reputable builder should be able to show you homes they've built and put you in direct contact with previous clients — not just references they've coached, but real homeowners willing to share their honest experience.

When you speak with past clients, ask: Were there delays? How were problems handled? Would you build with them again?

5. How Do You Handle Change Orders?

Change orders are inevitable on any custom build. What matters is how they're managed. Ask:

• How are change orders documented and priced?

• What's the markup on change order work?

• How are changes to the timeline communicated?

A transparent builder prices change orders fairly and documents everything in writing before the work is done.

6. What Is Your Subcontractor Qualification Process?

Your general contractor doesn't personally do every piece of work — they coordinate subcontractors for HVAC, plumbing, electrical, framing, and more. The quality of those subs determines the quality of your home.

Ask: How do you select your subcontractors? Are they licensed and insured? How long have you worked with them? What happens if a sub's work doesn't pass inspection?

7. What Does Your Warranty Cover?

New construction should come with warranty protections. Typical coverage includes:

• 1 year on workmanship and materials

• 2 years on mechanical systems (HVAC, plumbing, electrical)

• 10 years on structural defects

Get the warranty terms in writing and understand exactly what is and isn't covered, and what the process is to make a claim.

8. How Do You Handle Permit and Inspection Management?

Building permits and inspections are the legal backbone of residential construction. A builder who is experienced and organized will pull permits correctly the first time, schedule inspections proactively, and have a clean inspection record.

Ask: Have you had any failed inspections recently, and how were they resolved? Who on your team manages permitting?

9. What Is the Payment Schedule, and How Are Funds Protected?

Understand exactly when you'll be expected to pay, what each payment milestone represents, and how your money is protected between milestones. Some builders use escrow accounts; others draw directly. Know how your money flows — and what recourse you have if the project stalls.

10. What Could Cause Delays on My Specific Project?

A good builder will give you an honest risk assessment before signing. For your specific lot, what are the challenges? Are there soil issues, permitting complexities, utility coordination risks, or material lead times that could extend the timeline?

A builder who tells you "no problems, smooth sailing" is either inexperienced or not being honest. Every build has potential challenges — what matters is how they're anticipated and managed.

Why SEGC Is Different

South Eastern General Contractors holds an unlimited general contractor license in North Carolina and has maintained it for over 21 years. We carry full liability and workers' compensation coverage, and we'll walk you through our contract line by line before you sign anything.

We don't hide behind project managers after the sale — you'll have direct access to our team throughout your build. And our subcontractors are relationships built over years of quality work together.

Ready to ask us these questions? Call (910) 722.1135 or visit southeasterngc.com.