Home : Blogs : Peter Tamura : Peter's Blog

Passing on Inspections for New Construction?

We met with our clients for inspections in a home in Owasso, they had mentioned to me that some of their friends had wondered why they were investing in inspections on a new home.

The EMP inspector (electrical, mechanical & plumbing) discovered a leak in the shower pan that was leaking water into the adjacent room. He estimated that it would be a repair that could cost as much as $3,000 as the tile would have to be ripped out to do the repair. The builder who was also there was not happy but resigned to taking care of it prior to closing. It may seem reasonable to consider foregoing inspections on a new home, but it is always easier to get repairs negotiated and done prior to closing.

It's an example of being penny wise and pound foolish, we always recommend that clients get appropriate inspections. Happy house hunting, for more tips on searching for your dream home, contact us at 918-770-6999 or email at PTamura@TulsaRealtors.com

Posted by Peter Tamura on 11/04/2009 04:08 PM

Comments (108)

Home Inspections on New Construction in the ActiveRain Channel

inspections, new construction, inspectors, builders

This post has been included in Oklahoma Information Tulsa County, OK Information
Post is included in group: RE/MAX Active Rain Bloggers

108 Comments on Passing on Inspections for New Construction?

NOV

I recommend a three stage new home inspection, one for foundation, one for pre-drywall and one for final pre-settlement walk-through.

Of course, it depends on the price range as to the type of inspeciton.

Code inspectors inspect for compliance and safety. They are not home inspectors.

Peter, We always advise our clients to do 3 seperate inspections during construction of a new home.

Hi Peter, Thanks for the reminder. Inspections are a must, it's also great to purchase title insurance when buying a home, but then again, insurance doesn't cover everything!

yup, you just never know what is lingering behind closed walls.

It sounds like you saved your clients' time and money, and kept them from having a lot of grief after the closing, Peter. Great advice! I'll bet they're glad they didn't listen to their friends in this case.

I worked as a home inspector from October 2001 to August 2005, and our semi-joking answer to "Should I have an inspection on new construction" was "The Trojan Horse was new, but someone should have inspected it!"

Dear Amy,

Yes, sometimes friends make the worst real estate advisors!

Jim,

I like the Trojan Horse example, way to make a point with some humor, I will be using that one.

Peter - Yes, I agree. I always ask clients to do home inspections on NEW construction. The most recent one - the builder was very happy with it, and the used this as a preliminary builder walk-thru. And the home inspector did find some problems. Everyone was happy.

When I worked under another hat I asked my broker at the time about this subject. His answer was, dont offend the builder, you don't need one. This struck me as an odd thing to say and certainly not in the best interests of my client, so we chose to ignore him. Glad you did too!

I am a former homebuilder, and I agree with this completely.

To Corinne; I can't imagine you broker telling you that...who is he/she working for?

I've got one coming up on a new construction. I always recommend to my buyers to get one whether it is new construction or not.

Always a great idea to have the 3 prong approach on new construction. I have done several new construction contracts and encourage aeveral inspections along the way. Peter, you are very right in stating that it is much easier to have things corrected along the way, rather than waiting to have to tear it all apart. Great advice.

Peter - "Trust me the water's fine" is never a sound policy to lead your buyers on new construction. New construction looks so clean and new. Who knew. I always (and vocally demand) my buyers take out cheap insurance with inspections. I had one a when the bathtub was filled and drained that the ceiling collapsed because the drain line PVC pipe was never connected. There are many problems in new construction that can be exposed (and fixed) and make buyers Happy Campers. Always inspect the house. Congrats on the feature

Very smart! I worked for builders for 8 years before starting Argent Decor, and just because it's new doesn't mean it's perfect - always good to have someone working for YOU/Your client to protect them! City/County codes inspectors aren't home inspectors...

Sharon Kotula
Argent Decor
Phoenix Vacation Home Furnishing Service
www.ArgentDecor.com
602-774-2294 Showroom

I do as Lenn does, a three stage new construction inspection...want to guess how many vents aren't connected or, like Claude, pipes? They don't want an inspection? They sign that I recommended one! It is that important!

Always do one...yes their is usually a 1 year builders warranty....but not if he goes belly-up....do your inspection as it is worth the dollars.

It is important for buyers to remember that builders usually hire the cheapest/fastest contractors to get the job done. I have seen new homes with missing insulation, ducts that were not connected, plumbing incorrectly hooked up, and countless other issues. These were all found in homes built by one of the larger builders in our area! The $400-$500 the buyers spend is one of the best investments that they can make.

Peter - I'm glad your inspector found the shower leak. I've seen some pretty nasty stuff on new construction. New certainly doesn't mean right.

I have an e-book that I provide to buyers of new construction. I tell buyers to do three inspections with an independent inspector.

Oh, a resounding "YES" to a home inspection on a new construction! Nothing and nobody is perfect, things get overlooked, and once you find out (way later) it's going to be costly.

Peter, definitely an inspection on new construction. Some quick stories:

One of my neighbors passed on the home inspection. Went to put in her first load of laundry. Guess what? Drain pipe from washer not connected! The water drained down into the kitchen, destroying the ceiling and walls.

One of my clients wanted to save money and did not hire a home inspector. Later, had trouble getting his gas fireplace started. Discovered it was not up to fire code!

well I am sure the clients were happy thats for sure

I totally agree. In process inspections are great. The more eye on the home prior to closing the walls the better.

Lenn is absolutely correct. You need an independent inspector for the stages of construction. I spent 16 tears in construction and in many areas craftsmen (and i use the word loosely) are nothing more than piece workers. While I am at it there is a huge difference between a builder and a contractor who just takes bids and is nothing more than a paper shuffler and this applies to ALL price ranges!

I totally agree with the importance of home inspections on new construction - I've seen the pictures inspectors have taken of missing insulation in attics, unconnected heating vents and plumbing (and no, you really DON'T want plumbing waste pipes flooding your crawl space because they aren't connected!) Not to mention more "minor" things like hot/cold faucets reversed, stair railing to the garage that blocks access to the furnace to change filters etc etc etc. Some builders are very receptive to follow up after closing - some not so much - & if they go out of business, well, you know!

I can't even count the problems that inspectors have found on new construction deals that we have had in the past. Electrical problems, plumbing problems, you name it.I explain it to my clients like this: whn buying a home from an owner, it has been tested. New construction hasn't been tested!

I am a firm believe that any homebuyer should take advantage of the opportunity for a home inspection, new-build or resale. It is important to know what one is getting into, and vital to avoid costly unexpected expenses in the future.

Good thing they listened to you. Just because it's brand spanking new, doesn't mean there aren't any problems. We don't know the builder's employees and their work ethics, etc. I always tell them get inspections because you never know. :)

I cannot imagine letting any buyer close on new construction or resales without using a building inspector and an attorney. If you let your client know from the beginning that this is way you do business, then using professionals such as inspectors and attorneys will not be a surprise.

GOOD LUCK,

Scott Miller, Realty Associates, Boca Raton, FL

I did a home inspection prior to a new construction settlement earlier this year and am very pleased the Buyer made this choice.

A home inspection is always worth the money. I have seen inspectors find some poor work on new construction

I would have the client pay to have that inspector go back and verify the job was done correctly. I have seen too many repairs made that are only band-aids to the identified problems. By the time the walk thru comes and the meeting at the closing table - it's really too late (but, of course it can and has been done) while the buyer parks the U-Haul in the driveway.

I support a three stage new home inspection, one for foundation, one for pre-drywall and one for final walk-through. I also tell buyers of new homes to have a home inspection done when C of O given so we can do a final inspection on the systems under full load conditions.

Peter - Inspections are definitely a must, especially on newly constructed homes.

I agree with this post for sure.....Any home needs a home inspection.

Patricia/Seacoast NH

To have a home inspected by an independent third party is always a good idea. What is there to loose, a few hundred bucks at best. And if you consider spending the money a loss because no major defects were identified should be peace of mind, and an indication that the home is being constructed properly. The advantages of having an unbias outside professional opinion far outway any disadvantages.

Great tip!

We also recommend a home inspection - and a three part one if they build the home. Very few of our buyers do not have one done. You can always tell when a home didn't have a home inspection when it was new when it's sold a few years later - there are always issues that would have been caught by the inspector.

I haven't closed a sale the past few years without an inspection. Sure eliminates potential problems in the future.

We had an inspection done on new construction and the inspector found water in the crawl space. And it was a lot.

Turns out the sprinkler valve was leaking and running down into the crawl.

Who knows how long that would have gone unnoticed?

If an agent is representing the buyer, it's a CYA policy for my office. If I ever mentioned "Oh, it's new construction, don't worry about a home inspection" OMIGOSH! Not very good fiduciary. I'm amazed at what my inspectors unearth on the new constructions. It's WORTH it for peace of mind! Great post.

It's always a great idea to have an home inspection on any home including New Construction

If there is something that is wrong this is a perfect time to be able to catch it and have the builder repair it.

I have worked as a New Home Sales Consultant for many years and have also worked in General Brokerage. As a New Home Sales consultant our company policy was to inform the buyer that they were welcome to secure the services of their own home inspector so long as the inspector did not interfere with the construction schedule. As a real estate professional, you need to keep frequent and open lines of communications with the on-site sales representative and/or the construction manager. A good time to inspect plumbing and electrical is before drywall so this may only leave your inspector with a 1 or 2 day window of opportunity. Do not expect the builder to suspend or delay construction waiting for the buyer's inspector.

As always, a home inspection in many cases is like an appraisal, it is an art and an opinion. If you get 5 different home inspectors, you will get 5 different reports. Not everything that is listed will neccessarily be a deficiency and/or some items will be rectified at a later time in the construction process.

Charlotte Homes For Sale

Peter,

We couldn't agree more! ALWAYS get an inspection!

Mike in Tucson

I'm with Lenn. I've had inspectors that the construction crews hated to see show up... but that also meant that they knew they needed to tighten up their work.

NOV

Sounds like you did your client a real service.

We usually do three inspections. The first is before they pour the slab. The second is when all the plumbing, electrical and hvac is done prior to hanging the sheetrock. The final is once construction is complete.

I think you have to do them on any purchase. I am not an expert in home construction and my client is usually not either.

Buying a new home without an inspection is like buying a new computer without virus protection or installing automatic updates! Just because it is new definitely does not mean it is finished and perfect!

Peter - I always suggest my buyer do a home inspection even on new construction. The buyers almost always question why they should spend the money. I tell them of other past buyer clients of mine who have had them done and what the inspectors have found. One found a vent not vented properly causing a fire hazard and another found hot and cold water faucets connected incorrectly.

Peter:

Home inspections are a must for all home purchases, including new construction. A home warranty will not cover the fact that the construction was shoddy in the first place, When a person is investing in something as large as a home the cost and trouble of an inspection is minuscule compared to the problems it can save you in the long run.

A couple home inspectors I have used in the past have always said that a home inspection on new construction is even more crucial than on a resale. On a new home no one has lived in the property to "break it in" and builders aren't always as careful putting things together as they should be. Both said that the list of necessary repairs on new homes was a lot longer than on resale.

Always get a home inspection on anything structure you purchase.

Patricia

Oh the builders are never happy to see an inspector and quite often have an attitude with them and with me. They alsodont like buyers reps!

Thanks for all the comments, I am hearing pretty consistently the three stage inspection on new construction, Robert thanks for clarifying.

This home, although new, had been sitting for about a year without a buyer so we didn't have an opportunity to do the three step process, but we also had a chance to see if any settling issues had occurred during the first year.

Gregory, thanks for the reminder on the reinspect. On the reinspect, I guess we could ask the inspector to inspect the installation of the liner before they close it up, or just do the pan test again when it's finished, I'll ask the inspector what he suggests or I'd be grateful to hear suggestions here.

Good thing you caught that. I always strongly encourage a home inspection to my clients. Thanks for sharing this story.

Yes, I ALWAYS recommend an inspection...new home or not, they are all built by humans, and human error can ALWAYS be a factor.

Peter, every Realtor ought to experience having a new personal home built for themselves. They will better understand the term, "man made".

It's nice to see the many comments by Realtors on this blog. To me it is a "no-brainer". Prior to launching my inspection carreer I spent 30 years as a builder (hands on, not telephone jockey) and I can tell you that there are so many things the builder is juggling at the end of a project that it is rare to find everything complete when it goes on the market. Especially in these days of all the work being done by subs with very little hands on contact by the contractor. As an inspector, I have found many issues on new homes from windows installed upside down (how do weep holes drain when they are at the top of the window?) to unconnected toilet drains. Imagine what that would have been like one year down the road. Excellent post Peter and an important subject.

Peter, this is some great advice. Before I became a real estate Broker, I bought several new houses from developers and I never thought I needed an independent inspection. You've definitely changed my mind.

everyone should get a hone inspection regardless if it is new, resale of bank owned,

Peter,

Glad to see this got featured! And Congrats on that! This is an all important message that needs to get out there....and Lenn (as usual) hits the nail on the head....3 step inspection!!!!

In addition to the home inspection, a radon gas test should also be strongly considered depending on the location. New homes often have high radon levels as the construction is much tighter than older homes.

Having built hundreds of homes I'm well aware of the need to inspect new homes. Regardless of the competence of the builder, mistakes happen. I always recommended that my customers have the home inspected.

I have never met a builder who appreciated having a home inspection on new construction! I always recommend a home inspection on a new home. I usually do a two stage, pre-drywall and final.... Lenn, what does the foundation inspection cover?

Every buyer should have an inspection done. Resale or new construction - it does not matter. The builders are not crazy about it, but you story is a perfect example of why it needs to be done. Would the builder have fixed the issue if they realized after closing? Maybe, maybe not. I'm sure you clients were happy with their decision.

Having worked in the past as a contractor for most of the major builders in our area, I will tell you have it inspected. Pre-drywall especially, as once the drywall goes up, there is no telling what is behind those walls.

Have the inspections along the way for sure! I have worked for a builder before and it was no big deal to have the buyers perform inspections. We preferred they inspected the home during the construction process. As a realtor representing, I will always suggest these inspections to my buyers on new home builds.

One of the 1st homes I sold was brand new. My MB had co-listed w/me. He was on hand for the final walkthrough the eve before closing. He turned on the brand new dishwasher to demo and let it run. It was not hooked up to the drain! Builder discovered it the next AM. Flooded carpet top level of a sp/lv.

Another time-another new home. Night before closing the buyer's broker had hired a cleaner to clean up the new home-carpet threads and such. 1/4 of the home was without electricity and the mere 3' of phone cord was in crawl space in the very middle of the floor plan. Buyer had had a builder friend walk through to inspect. Yeah, right. INSPECT.

I know of other horror stories, but these were 2 of my own listings/experience.

Wow bet this feature caught you by surprise~ great info - and a question that comes up again and again! Thank you!

Hi Peter...Liz re-blogged this Post here's my comment...

Great Post on Building Inspections, we can all give Stories of problems found during inspections. I had a Buyer ten years ago want to Pass on an inspection...as the House was only 10 years old.." What could be Wrong"..The Buyers Wife said "Listen to Fred"...The Building Inspector found the Asphalt Roof turned to powder when you walked on it...apparently a Batch of Shingles was faulty from the manufacturer. That Saved my Buyer $4,000, they still talk about.

Cheers

It is important to have new homes inspected... However, many builders simply won't allow for an inspection. Just wondering how you handle the situation where the inspector identifies a "defect" and the builder disagrees... most contracts for new inspection won't let the buyer out of the contract.. or the buyer has pre-paid for extras... how is a dispute resolved?

P.S. I grew up in Tulsa... and still have friends and family there.

NOV

It is always interesting to find out that there are a list of items in new construction that need repair. Everything looks so good on the face of things that one might think it's an unnecessary task to have a professional home inspection. Yet, a short list always seems to result. I some cases, it might be even more important to have new construction inspected because a lot of the 'systems' have never been used! i.e. the leaky shower!

I'm working with a buyer now that is considering building, I will be sure to recommend a home inspection prior to closing! Thanks for the advice.

I agree that inspections should be done on new construction. I have seen builders cover weep holes (for those in areas without brick construction - holes at the base of brick work to all moisture to get out) with sod.

In many instances the issues would have been a much bigger fight after the closing. Any builder that show resistance to the use of an independent home inspector is saying a lot about their workmanship.

Inspecting a new home is actually much more crucial than inspecting a resale! We always recommend a series of inspections on new construction.

People wonder why I insist that my agents put a home warranty on all new construction purchases - because of this very reason. Instead of arguing with the contractor and getting him to honor his warranty and getting his people out, the home warranty company sends their people out and the issue gets fixed. Of course, it's more desirable when these things are caught in advance, as above, but how is a home buyer supposed to ensure that a 3 stage inspection was done by the contractor during the building phase?

A few years ago I sold a new construction home and was SO GLAD the buyers followed my advice to get an inspection. Several major systems had problems, including a radon system installed incorrectly, and pipes to a soaking tub that were NOT connected at all! If the buyer had turned on the bath, the water would have run into the walls!

I financed new construction for 15 years as a banker. The inspections done by the City Building Inspector are sometimes cursory, especially if the inspector has done multiple inspections for the builder and feels like Mr. Builder always does it right.

A good builder should really welcome 3rd party inspections as it could only prevent future warranty claims down the road. David

Wow,

Thanks for all the posts, I will just refer my clients to some of these horror stories when they balk on inspections!!

Fred,

"The buyer's wife said listen to Fred!" Lol! let's wish for many more sensible people like that.

Joan,

I think it's a good idea to know your builders and policies. I know a friend of a friend that lost a $30,000 deposit on a custom home when the builder went out of business.

N.B. We found out that our inspectors policy is not to re-inspect showers after showerpan repairs due to too much liability, he says that the pan test is just not reliable enough. We just make sure the repair is done by a licensed plumber and get a receipt.

I always always always encourage a new home inspection! Things sometimes go unnoticed during construction that can easily be addressed early on.

When selling a new home earlier this year I recommended hiring an independent home inspector, who by the way is a retired licensed general contractor, and found several issues with quality of construction. The home was a spec that had been sitting for a year and had multiple issues with sub-contracted work. The shingles on the roof had been installed incorrectly, the furnace ductwork needing some revamping, some plumbing rerouted, caulking missing inside and out, etc. So in this case the buyers were really happy I did not advise as Corinne's broker did. You will never know what is really going on unless you have an independent professional take a look at the home.

In Connecticut the home builder have to warranty the home for one year after the closing.

Homebuilders in CT don't like home inspections on their homes because of ego and pride more than anything else but its a good idea to get a home inspection anyway with an inspector who is also an engineer is you could find one. Then they not only can point out the problem but can actually recommend how to fix it,

great post

Local municipal code inspectors have a daily inspection number of 200 to 250 inspections aday and are at the inspections site for only a few minutes to do buy-offs. Why do you think so many new construction projects have flaws? Have your home inspected by a professional Home Inspector, whether newly constructed or is a resale; you and your clients won't regret it! I just recently inspected a new construction home and when the master bathroom tub water was turned on, it started raining below into the bedroom. Client is currently suing the builder for damages.

Ernie Martinez, Eyeball Home Inspection services - Home Inspections in San Bernardino, Riverside, Orange and LA Counties

Owasso? Hey, that's my town! LOL

I always tell people to get an inspection on new homes because WHO builds new houses? PEOPLE do. And who makes mistakes sometimes? We all do!

It is surprising to me how many people take a pass on a new home construction!

I would always have home inspections, in 2003 purchased condo's 2 years later found out there was not firewall among numerous other problems. Still involved in the lawsuit and I would not wish it on anyone!

I completely agree and encourage my buyers to do an EMP inspection at minimum, even if it is new construction. During the inspection process, we have discovered improperly vented dryer vents, missing air filters and other miscellaneous items. These items were found after the home had already passed the municipal city inspections.

Hey Peter,

This is a very good and important post. I posted information on AR about defective materials used by some contractors on new construction that I found when performing home inspections. Buyers should understand that like a new car that is test driven for performance, a newly constructed home should be inspected for performance as well.

the builder got off cheap finding that leak before it did some real damage. this is your chance to jhave a qualified inspector hold the builder to a high standard as they correct that shower pan.

i've been in and around the building trades for 35 years and the worst quality i have seen is in tracts built by name brand builders. while some builders are known for hiring only highly skilled tradesmen, others are well known for hiring any hack with a truck and a hammer. and remember, code inspectors do not inspect for workmanship.

in todays climate the motivation for builders to use the low bidder has some really bad and poorly capitalized sub-contractors getting the gigs. the likelihood of your builder being in business in ten years from now is lower than it's ever been before making the need for an inspection far greater in a new home than a resale. low bids mean corners get cut...cheaper materials, unqualified tradesmen, shoddy install practices, details missed...MOST of which get covered up by the next trade. it's an old saying in the business "don't worry, i have a good painter" or that latex caulk is "liquid carpenter".

the home builder that resists or impedes an inspection, or even better INSPECTIONS, already knows what your inspector will learn...his guys are going to embarrass him.

Peter,

If the buyers were "clients" and you and your company were representing them, then you certainly should have recommended a good thorough home inspection. Good for you!

In our market many licensees act as designated buyer agents and are too ingnorant or unethical to recommend thorough home inspections on new construction. Most don't recommend thorough inspections on used homes either.

So remember not just a home inspection, but a thorough inspection if you are working for the buyer. Just make sure and discuss reference points and standards with the buyer beforehand.

if it has a roof and a floor get an inspection!

Always get a home inspection on New Construction. There are a lot of things that go into a new home and some mistakes are common. Another good idea is to get another inspection after living in the house for almost a year before the first year warranty expires.

I am not much help when it comes to residential, but if there are questions and needs pertaining to

commercial real estate let me know. We can help with office listings and info, articles in all major cities

www.officespaceheaven.com

thanks

pat

Excellent point. It's so easy for people to forego the inspection on new construction. They shouldn't.

This is very good advice. Mistakes can be made, even on new homes.

Makes sense Peter. Thanks!

NOV

Thanks for reminding me about this issue. A good investment and sound advice for the buyer to get a better night's sleep the first night after closing.

It is amazing that a buyer would consider cutting corners on inspections when they are likely to be purchasing the most expensive product of their entire life! Some people put more research into buying a computer than a home!

MY experience with inspection on a new house is that the punch list for it by the inspector is usually longer then on a house a few years old. That because the sub contrators usually miss stuff (Like loose eshaust ductwork in the attic) and nobody checked after them. If my client does not want to do an inspection on a house, I ask them to sign an addendum to protect me. I have only had to have 1 client ever sign one of these.

As a home inspector for the last nine years, and a construction project engineer for the proceeding 20, I must say that new home construction inspections most often find only cosmetic issues but, and that's a big but, when you find something it's usually a big something. Most contractors want to do a good job but like home inspectors, Realtors, doctors and even lawyers there are always some that will go for the short cuts. That is when the inspection pays off in spades. A few years ago I inspected a very upscale new house occupied by the contractor during final detailing and cleanup. I was not allowed to access the attic as it was sealed. Fortunately for my insurance company, I documented that fact, and advised my client. Unfortunately for my client, a couple of years after the sale a bad leak developed. It turns out that the roof trusses had been dropped at some point and several were badly cracked. Minnesota snow loads completed the damage and very expensive repairs were called for. Inspection during the construction process as noted above might well have caught damage later concealed by finish.

NOV

Like Lenn said, the inspectors are only for code compliance. I think it's a great idea to recommend and inspection on all properties including new construction. It's also much easier to get the builder to do 'faster work' prior to closing than afterward. That's from my own past experience BTW. Good post.

Thanks for the article.Your article was pretty informative and i hope that in future also i get these kind of article.

Thanks,
Portable Storage,
www.moveablecubicle.com

NOV

Great job Peter. One of the biggest mistake that people make is assuming that new construction does not have any flaws. Sometimes (depending on the builder) there are many flaws to fix.

NOV

Yep, goofy stuff can happen. It's a small investment to pay to protect your asset.

NOV

I think that it's correct to appoint an inspector for a new construction.Because we never whats behind the wall or what's the problem with the ceiling.

Thanks,
Portable Storage,
www.moveablecubicle.com

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?