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29/11/2024

How to Avoid Costly Mistakes When Buying a Tiny Home or Transportable Home: 10 Questions to Ask Before Signing a Contract

The transportable home and tiny home industry is growing, but with growth comes risk. Recently, we’ve been hearing more and more stories of buyers being burned by companies that aren’t delivering what they promise. It’s concerning, and we feel a responsibility to help educate buyers—whether or not you choose to work with HouseMe.

The reality is, not all companies operate with the same level of transparency and financial stability. In a small industry like ours, word spreads quickly, especially when suppliers aren’t being paid. But as a customer, how would you know?

This guide will arm you with the questions to ask and the red flags to watch for so you can make an informed decision and avoid costly mistakes.

Whether you choose to work with HouseMe or not, here’s a guide to ensure you don’t get caught out.

A lot of companies in our industry are struggling financially, and you wouldn’t necessarily know until it’s too late. So how can you protect yourself?

10 Smart Questions to Ask Before Committing!

Here’s how to do your homework and spot red flags before signing a contract:

1. Does the company have stock on hand?

Does the company have materials in stock? Or are they relying on your deposit to place orders? A healthy business should be able to show evidence of resources on-site. If a company isn't carrying stock, it's a warning sign.

2. What are the deposit requirements?

Standard deposits in the industry range from 10–20%. Be cautious of companies asking for 50% or full payment upfront. This could indicate financial instability. Anything beyond that warrants serious questions.

3. What do their Google reviews say?

Take the time to read reviews online, but read critically. Are the reviews specific, mentioning real names or locations? Or do they seem generic and possibly written by friends and family? Spotting manipulators is easier than you think.

4. Can you visit their facility?

Seeing is believing. A site visit can reveal whether they’re actively building or if your home would be the only one keeping the business afloat.

5. What does their order book look like?

A waiting list or queue is a positive sign—it shows demand and future cash flow. If your order seems to be propping up their operations, that’s a red flag. Does your order feel like a lifeline for the business? Tread carefully.

6. Is their yard stocked with materials?

If you don’t see a flow of materials in their yard, they might be on stop-credit terms with suppliers. This is a clear indicator of financial trouble.

7. What’s happening with their staff?

Are they hiring, or are people leaving? High staff turnover or downsizing can suggest internal issues. A shrinking workforce is often a sign of bigger problems.

8. Do their promotions seem too good to be true?

Are they offering extreme discounts or “free” services, like transport? These can signal desperation and a cash flow problem.

9. How credible are their awards and accreditations?

Did they truly earn their accolades, or were they purchased? For example, many "Most Trusted" awards are not something you win—they’re something you pay for. For example, such accolades can cost around $395, and there is no "winner." Don’t believe us? Check out the information packet here for yourself. A quick Google search can separate fact from fiction.

10. Do you need council consent? The most commonly asked question.

The most common question we get is: Does it need council consent? Our stance is clear—every HouseMe home is treated as a building, goes through a building consent process, and is issued with a Code Compliance Certificate (CCC). Read more here: Code Compliance Certificate.

But here’s where things get tricky. Many companies will claim that "if it’s on wheels, it doesn’t need consent". This is where we’ve heard the worst horror stories. Our advice? Get formal approval from the council in writing before buying something on wheels, assuming it doesn’t require consent. The council’s stance is often vastly different from what the company tells you. Don’t take their word for it—learn more here: Tiny Homes on Wheels.

Our Final Advice: Trust Your Instincts

If something feels off—ask more questions. It’s better to spend extra time researching now than to deal with the fallout of a poor decision later.

At HouseMe, we’re committed to transparency and quality. Whether you’re considering us or another provider, we’re happy to answer your questions and guide you through the process. After all, an informed buyer is a smart buyer.

If you’re in the market for a transportable home, come visit our show homes or give us a call. We’re here to help you make the right decision.

Start Your HouseMe Journey Here

Talk to one of our friendly team, book a callback, or download our brochure, we look forward to hearing from you!