To assist you in making an informed choice, we have compiled a comprehensive list of key factors to consider when evaluating home builders. By keeping these considerations in mind, you’ll be better equipped to identify trustworthy and skilled builders while avoiding potential pitfalls along the way.

A guide to understanding how to know if a home builder is good.


While there are many considerations and factors, we’ve identified the most important to help ensure you make the right decision when it comes to choosing a home builder for your new home.

1.  Price 

When embarking on the journey of selecting a new home builder, price undoubtedly takes precedence. It is essential to carefully assess the costs proposed by each builder, comparing them against competing quotes to ensure a fair evaluation. However, beyond mere affordability, it is equally crucial to determine whether the price aligns with your budget and anticipated expenditure. The cheapest quote may lead to additional costs later down the track and you may not always get the best quality. You can ask for a list of popular Inclusions and really ensure you know what Is Included.

Obtaining quotes from home builders necessitates a foundation of transparency and open communication. If you encounter challenges comprehending the inclusions and exclusions of a build, if certain costs appear unclear, or if your questions go unanswered, we strongly advise considering a different home builder.

2.  Financial stability 

The construction and home building industry in Australia has experienced a period of uncertainty over the past couple of years. Given this context, ensuring that the home builder you entrust with constructing your dream home possesses the necessary financial stability has become paramount.

Understanding the significance of financial stability in determining the suitability of a home builder is one aspect; however, uncovering the actual level of stability can be a daunting task. Fortunately, there are approaches you can adopt to address this challenge. One approach is to review pertinent documents and information related to the company, or alternatively, seek the expertise of a trusted financial advisor. During this assessment, several aspects warrant attention, such as examining financial statements, credit ratings, public records of performance, and the builder’s payment history with suppliers and subcontractors.

The aim is to identify signs of profitability and liquidity, ultimately providing you with the reassurance that the selected home builder is financially sound.

3.  Building style

When it comes to your home, it should be a place that resonates with your personal taste and captures your vision. While many home builders exhibit versatility in designing and constructing various styles of homes, it’s important to acknowledge that preferences differ among individuals.

Hence, it’s crucial to select a new home builder who can transform your dream style into a tangible reality. To gauge their compatibility with your vision, explore their portfolio showcasing past projects.

Additionally, consider visiting display homes, if available, to gain a firsthand experience of their craftsmanship. Don’t hesitate to directly enquire about the builder’s offered building styles to ensure they align with your aesthetic preferences.

Remember, finding a builder who can bring your dream style to life is a key step towards creating a home you will truly love.

4.  Job scoping quality

One vital aspect to consider when evaluating a building company’s suitability is their proficiency in scoping jobs. Job scoping refers to the process of meticulously documenting and defining the project’s requirements, objectives, constraints, and deliverables.

By enquiring about a company’s ability to scope jobs properly, you essentially seek assurance that they thoroughly assess the scope, scale, and intricacies of each project before undertaking it. This encompasses various aspects, such as budget, timeline, materials, and objectives, which should all be encompassed within their scoping process.

A reputable home builder will diligently gather all the necessary information and compile a comprehensive analysis of the plans and designs. This ensures that all parties involved have a clear and detailed understanding of the project’s scope and what will be accomplished. By prioritising proper job scoping, a home builder demonstrates their commitment to delivering a well-defined and successful project outcome.

5.  Licenses and insurance

Irrespective of the specific licenses and insurance requirements that vary across states and territories, it is essential for all construction and home building companies to prioritise compliance with local regulations.

When considering a builder, it is crucial to engage in open discussions and explicitly enquire about their compliance measures. Requesting Certificates of Currency and other relevant documentation can serve as evidence that the builder possesses the necessary licenses and insurance coverage.

Several examples of commonly required licenses and coverage include:

  • Construction and/or Builder’s Licenses
  • Occupational Builder’s License (for specialised work such as plumbing, electrical work, or carpentry)
  • Demolition License
  • Public Liability Insurance
  • Workers’ Compensation Insurance
  • Construction All Risk Insurance
  • Professional Indemnity Insurance
  • Motor Vehicle/Contents/Property Insurance

By ensuring that a builder holds the appropriate licenses and insurance, you can establish confidence in their commitment to legal and financial responsibility.

6.  Social proof

One of the most effective methods for gauging the capabilities of a home builder is by examining their track record. Professional references, industry accreditations, awards, and reviews from past customers provide valuable insights into the builder’s competence and reputation.

Social proof plays a pivotal role in establishing the credibility, trustworthiness, and reliability of a home builder. The more social proof you can find that highlights positive past work, the stronger the indication of the builder’s capabilities.

Social proof can manifest in various forms, including:

  • Customer reviews and testimonials (check out Product Review and Google Review)
  • Case studies and success stories
  • Social media engagement and interactions
  • User-generated content showcasing the builder’s work (search their #)
  • Expert endorsements and recommendations
  • Awards and certifications received by the builder
  • News or media coverage featuring the builder’s projects
  • Industry partnerships and collaborations
  • Number of successfully completed homes or projects (you can ask this from your New Homes Consultant)

7.  Location 

Location is an important aspect to consider when deliberating on the selection of a home builder to construct your house. This pertains not only to the areas in which the builders operate and provide their services but also to the location of their headquarters or local offices. Taking location into account at the outset can save you a significant amount of time and effort.

Choosing a home builder with a presence in the desired location offers several advantages. Firstly, local builders may possess specialised knowledge of the area, including familiarity with local regulations, building codes, and environmental factors. Additionally, proximity to their offices allows for easier accessibility and streamlined communication throughout the building process.

On the other hand, larger companies may provide a broader scope of experience and an extensive portfolio of past projects, instilling a sense of reassurance and peace of mind. The decision between local builders and larger companies depends on your specific preferences and priorities.

8.  Rapport

After evaluating the technical and data-based considerations, it is crucial to shift your focus towards the interpersonal aspect of your relationship with the home builder. Considering the nature of your rapport, the level of comfort you feel, and your ability to effectively work with the company or its representative is of utmost importance.

Constructing a home demands a substantial investment of time, effort, energy, and finances. Therefore, it is vital to ensure a harmonious working relationship with the chosen home builder. Compatibility becomes a key factor in ensuring a smooth and enjoyable building experience.

Take the time to assess your level of comfort and communication with the builder. Do you feel understood, heard, and respected? Are they receptive to your ideas and concerns? Open and effective communication is vital throughout the construction process.

Choose New Generation Homes — WA’s trusted home builder

For over 45 years, West Australians have grappled with the timeless question of how to identify a reputable home builder. Throughout these decades, the search for reliable answers has consistently led them to a single destination: our doorstep here at New Generation Homes.

As a trusted industry leader, New Generation Homes has proudly earned the confidence and loyalty of countless homeowners. Our enduring presence in the market has become synonymous with quality, innovation, and exceptional customer satisfaction.

With a proven track record spanning nearly half a century, we have consistently exceeded expectations and transformed dreams into reality. Our unwavering commitment to excellence, paired with our unmatched expertise, has positioned us as the go-to choice for those seeking a reliable and skilled home builder.

No matter where you are in the building process, our dedicated team is here to provide personalised support tailored to your unique situation. Whether you’re a first home buyer, actively building a new home, or seeking more information, reach out to our friendly team today.

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