Beware of builder who forbids inspection
One-year warranty offers little protection against defects
By Barry Stone, Tuesday, July 7, 2009.DEAR BARRY: We opened escrow on a brand-new home, and the builder refuses to allow a home inspector on the property. He insists that a home inspection is not necessary because the house has a one-year warranty and because an occupancy permit was issued by the building department. Since the home is new and it is warranted, should we be concerned about having a home inspection? --Jake & Falynn
DEAR JAKE & FALYNN: Builders who are honest and reasonable know better than to prohibit a home inspection. A professional inspection is a routine process in most residential purchases, regardless of whether the home is old or new. When sellers prevent buyers from having a home inspection, their motives and integrity are suspect.
In your case, the builder has made two false assumptions: First, he assumes that new homes are free of defects because the building department has signed off on the construction; and second, he asserts that a one-year builder's warranty insures a buyer against construction defects. Here are the problems with these assumptions:
1) All new homes have defects that are unknown to the builder, regardless of the skills and good intentions of the contractors and workers. It is simply not possible to build something as large and complex as a home without some human errors escaping the attention of the builder and the municipal inspector.
2) What good is a one-year builder's warranty if defects are discovered more than one year after the house is purchased? Here is a potential situation: Five years from now, you decide to sell the home. The buyers hire a home inspector, and that inspector finds construction defects that were not discovered or disclosed when you purchased the property, because you didn't hire a home inspector. The buyers demand that you pay for the corrective work, and you are stuck with the costs because the warranty has long since expired. Will your builder stand behind his work in that case? If so, let him put that in writing today. ...CONTINUED
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Submitted by Wenceslao Fernandez Jr, BS, Realtor, CDPE on July 7, 2009 - 2:55pm.
This is why we often find that, as a result of unscrupulous individuals and companies like (perhaps and alledgedly) this one, the government finds it necessary to regulate (and occassionally overregulate) an industry.
How can this still be going on is beyond me!
To me (and perhaps even to Barry), this builder is trying to conceal something and pass the hot potatoe on. DON'T LET THEM.
Weather good intentioned or not, Barry's advise is spot on. Get them to agree or move on.
As sweet as the deal may seem today, as Barry suggests, if you're left holding the bag on a hot potatoe, it may not burn you today, but it will burn you!
Passing up this seemingly great deal may then someday seem like the smartest thing you did.
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Submitted by Judy Orr on July 7, 2009 - 3:17pm.
I sold a new construction subdivision quite a few years ago. These were higher priced custom homes from a long-time builder/developer who had good subs.
During construction of one home, it was discovered (thank goodness and it was pretty quickly) that one of the plumbers did not correctly connect something and the water was simply dripping between the walls. From my recall, it was a full disconnect and it wasn't a little drip, so that's why it was easily caught. But anything can happen, and this builder gave a 10 year builder's warranty on his homes.
Judy Orr
Classic Realty Group
Orland Park Real Estate
Submitted by Sandra Mathewson on July 7, 2009 - 4:48pm.
Six years ago I worked for a subdivision builder and the builder tried to discourage inspections based on the same reasons in the article. At different times, there were 3 houses that the plumber "forgot" to hook the plumbing under the house to the sewer. You guessed it, everything was going on the ground. One was so bad, the county health dept. had to come in because it was a bio-hazard. The homeowner filed a lawsuit and the plumber had to settle out of court.
Had there been a home inspection this would have been caught. The inspectors I know, all crawl under the house after they turn on all sinks, tubs and flush toilets etc.