Special offer

What's Wrong With This Picture?

By
Real Estate Agent with Transaction Alliance 513.520.5305 www.LizTour.com SAL.2002007747

 

This looks like a normal ranch home under construction.  It's going to have curb appeal, 3 bedrooms, 2.5 baths, a 2 car garage, a walkout basement with finished rec room, and a deck with a GREAT view of the valley below.

Structurally the home is sound, built to code and no concerns.  The home is shaping up nicely, except for one significant thing.

It's NOT the home my buyers ordered.  Oh, the floor plan is correct and all the features they asked for are in progress or will be added, except for one very, very key thing.

The builder built the home too short!  A mistake was made during planning, and instead of the community standard nine foot ceilings, this home is being built to the plan's standard of 8 foot ceilings.

That error sets off a whole domino effect of things wrong.  The shorter ceiling means the home won't feel as big and open.  It also means the walls have shorter windows (so less light and less view to enjoy).  And the kitchen?  Those 42" cabinets with crown molding aren't going to fit either. 

This type of situatioin is exactly why I advocate so strongly for buyers to hire an agent for new construction.  I know many buyers figure they'll get a better deal without agent commissions factored in (they don't get a better deal).  And they figure, what could go wrong?  The builder builds hundreds of these homes a year!

Well obviously things CAN go wrong.  While the particular error I'm showing you is quite rare, if my buyers hadn't hired me they'd be totally on their own assessing options.

So what options might we have?

Primary is the expectation that the builder correct the home to what was ordered.  Yes, it'll be expensive for them to remove the roof and the walls and rebuild correctly, but frankly that's what they're paid to do.

But we do have other options to assess, and that's what I'm here to help do.

Would it make sense to accept the home with 8 ft ceilings IF there's a sufficient price reduction to compensate?  (My take, probably not.  Who wants a daily reminder that one of the most expensive purchases they'll ever make is NOT the home they wanted?  While I can always use more business, the business I don't ever want is unhappy clients calling me in a year or two saying "we HATE this home and want you to sell it!!"

Is there another lot in the community that would be acceptable to build the same home? (This has some cons obviously with a significant delay in having the new home ready and of course...THAT VIEW...no other lot is going to be quite as good, and may not have an option for a walkout basement).

Is another community by the same builder a good option?  While the builder is promising a TBD discount amount, other area communities tend to charge more for the same home.  So something to consider, what would be the final price to them?  More or less? 

And last resort, just opt out of the contract.  The builder returns deposits and we're back to looking for another perfect place to call home.

So what's the right choice?  Well that's a personal decision for my clients.  I'll provide them the best advice I can, then they'll decide and I'll help carry out the decision.  That's what I'm here for!

Need help with your Greater Cincinnati home purchase?  Give us a call at 513-520-5305 or email Liz@LizSpear.com.  We look forward to hearing from you!

 

Serving Greater Cincinnati home buyers and sellers,

Bill of Liz and Bill aka BLiz 

 

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Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of Transaction Alliance
Elizabeth Spear, ABR, Ohio License SAL.2002007747

William (Bill) Spear, Ohio License SAL.2004011109  Kentucky 77938
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EHO
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Comments (14)

Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Never a dull moment in real estate. Always hire an expert Realtor to minimize surprises.

May 24, 2018 09:00 PM
Liz and Bill Spear

We will NEVER see it all in this business :)

May 25, 2018 04:34 AM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

That's a tough one, but a good catch.  I wonder if the builder thought they might cut a few corners and save some money?  I hope not.  

May 24, 2018 09:04 PM
Liz and Bill Spear

Based on their explanation, an honest screw up.  I understand the why, but question the quality control that let it get through.

May 25, 2018 04:35 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Bliz thank goodness they've got you looking out for their best interests. Good luck to these buyers....and you.

May 24, 2018 09:33 PM
Liz and Bill Spear

Yesterday's meeting was favorable, we're just waiting for final options to make the right choice.

May 25, 2018 04:36 AM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

I'm sure many buyers' jaws would drop to learn this could even happen.

May 24, 2018 11:11 PM
Liz and Bill Spear

Our buyers figured it out.  They'd went for an overhead shower and realized it was much lower than expected. 

May 25, 2018 04:37 AM
Anita Clark
Coldwell Banker Access Realty ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Bill: This is a great example of why buyers need their own representation during a real estate transaction, regardless if it is a resale or new construction home.

May 25, 2018 02:47 AM
Liz and Bill Spear

There is much to consider, and while some of the options might sound appealing on the surface, taking into account the long term impact could change the entire decision.

May 25, 2018 04:38 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Some builder is going to eat some profit.  Teach them to pay closer attention.   also, it may teach some to build and let us sell the homes.

May 25, 2018 03:20 AM
Liz and Bill Spear

Definitely a significant bite out of the profit margin on this home. I doubt the walls will be usable.  Perhaps they can salvage the windows for another home.

May 25, 2018 04:38 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Bill. What a horror story this is. I know someone who had a similar experience without an agent and are still living with the consequences.

May 25, 2018 03:20 AM
Liz and Bill Spear

And that's my goal for this, to help them to the right option and decision that means no regrets when this is finished.

May 25, 2018 04:39 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

OMG...what a nightmare. 

Another valuable lesson here is to keep a constant eye on the progess of a home being custom built. When we built our home years ago we visited the site every single day. We caught a few things early enough to resolve easily.

May 25, 2018 06:46 AM
Liz and Bill Spear

And they go up so fast.  I think I swung by a few weeks ago.  They'd poured the foundation and were JUST starting to attach the first pieces of wood. And then blink, and the house above.  The builder estimates 4-6 weeks to correct.

May 25, 2018 05:04 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

This reminds me of the mistake my builder made when we ordered our home.  We wanted the family room extension, but didn't get it.  The rep screwed up.  I am reminded daily of the shorter family room, but we decided to stick with the home because we really liked the lot.  The builder was horrible and so was my agent at the time.  She really didn't stick up for us very hard.  I advocate much harder for my new construction clients as a result of my own experience.

May 25, 2018 11:33 AM
Liz and Bill Spear

And that was my concern if my buyers were to choose AS IS with some sort of financial compensation.  That shorter ceiling and kitchen cabinets will be in their face EVERY DAY, and I think that's a very bad thing to have happen.

May 25, 2018 05:05 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Featured in the group:  BARTENDER, MAKE IT A DOUBLE.

May 25, 2018 11:33 AM
Liz and Bill Spear

Thanks for the group feature!

May 25, 2018 05:06 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

BLiz- I'm laughing because when Larry started in the building business in Houston, the owner of the company drove through the community after the slabs had been poured for their new models. He decided they were too close to the road, so he had all 4 slabs bulldozed. 

May 25, 2018 04:35 PM
Liz and Bill Spear

At least they caught it early!

May 25, 2018 05:06 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Bill all good points, now this would never have happened under my watch....when my parents had the builder build their home my dad would send me to go and take pictures as the foundation was put in and then as the house was being built... all pictures were taken as things progressed.... now with that said if the buyer did not do the points I just mentioned above, then indeed there are only three options available and hopefully they will make the right decision which they will not regret later...Endre

May 25, 2018 10:09 PM
Liz and Bill Spear

I think it's reasonable to expect a builder to get the right ceiling height, but it wasn't apparent until they'd made enough progress to recognize it wasn't right. 

May 27, 2018 07:24 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

Oh man, this is simply terrible. I just can't imagine how disappointed the buyers must feel. I know you will help make it right, I would not want to accept the lower ceilings - and for resale purposes either. Folks like high ceilings...

May 26, 2018 07:36 AM
Liz and Bill Spear

Actually by the end of the meeting they felt pretty good.  The builder CAN remove the roof and walls and correct, we're just waiting on the confirmation that they will.

May 27, 2018 07:25 AM
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
HomeSmart Stars - Addison, TX
Real Service. Real Results. Real Estate

It could have been worse - it could have been a 2-story house! But what a nightmare.

 

May 27, 2018 06:33 AM
Liz and Bill Spear

Definitely not a twist we expected.

May 27, 2018 07:26 AM