Here is what Builders prefers not to tell you

Published by cravat | Filed under Miscellaneous, Real Estate, Shout Outs, Uncategorized

When purchasing a newly constructed home must always be a memorial, an event you always cherish. Unfortunately, for most buyers, it is a nightmare that will haunt them for the rest of their lives. The usual line that you will hear from the owners: “I will never have another home built ever again.”

Here are few of them:

“We make sure that our company only uses the best workers to build our homes when in for real, we use the lowest price trades that we can get, which only means that many are not skilled and are day laborers.”

Homebuilders bid out their works for customized and specified requirements in a particular home, often awards it to the lowest bidder. Now can you imagine the service and quality the contractor will provide you?

“I have a binding contract that will stop you from suing me should you have major defects in your home after you move in. And better yet, there is little you can do to get me to fix it!”

Remember, to read before you sign any contract. Or if you have a lawyer friend ask them a favor to read and explain to you the clauses that are not clear or if there are legal options that you can consider if there are problems after the services.

“If you’re really smart, you’ll hire your own third party, code certified, home inspector because the public inspectors and even my own inspectors aren’t here with your best interest at heart!”

Builders today search out third party inspectors to perform “Quality Assurance” inspections. The thing is, this is just more marketing propaganda than anything. In most states, these third party inspectors do not have to be licensed to perform “Construction Inspections”.

City and county inspectors are typically about the same as the builder inspector or much worse. Many of these inspectors are so piled up with work that they can only spend 15 to 20 minutes in a home. More so, it is not the City or County’s inspector job to look for workmanship issues; they are only there looking for health and safety issues and protecting the City and County’s interest. Just like the builders inspectors are there protecting the builders interest, not yours!

“If you back out of the contract for any reason, we’ll keep your earnest money for upgrade money”

Still a lot of people are surprised to find this is absolutely true. Again, the builder or sales people may tell you different, but most binding contracts, have clauses that indicates that your earnest money will be forfeited or upgrade money if you back out of the home. Get it in writing what happens if you back out and the steps you must take to get your money back. Do not shrub off the idea hoping that it will not happen to you because it does happen all the time.

Keep in mind that each area, state, city or country is different. You need to check with experienced and knowledgeable inspector in your location plus your real estate attorney before acquiring a newly constructed house. Require the builder to put everything into black and white, if he promises you several things it would be best it into contract.