New Construction Still Requires Attention

By
Real Estate Agent with Real Living HER

 

With the recent rise in new constructions it is a great time to review some new construction basics regarding warranty.  Contractor Problems are one of the largest numbers of complaints received by the Better Business Bureau.  These types of stats makes it important that you are knowledgeable and informed about how to insure that your Columbus area home remains the dream that you fell in love with, and does not become your worst nightmare.  Listed below are a few things to pay attention to in order to make sure your contractor doesn't end up as your complaint:

 

Understand what your Warranty Covers

  

Basically there are two types of warranties.  The first is called an express warranty, and is given to the buyer by the contractor.  The usual time frame for this warranty lasts between one to ten years, with one year being standard and the most common.  Everything from minor cosmetic flows to major defects is generally covered.

 

An implied warranty that lasts seven to ten years and basically states that the residence has to be habitable.  This is the second type of warranty and the specifics can varies depending on the state you live in.  To have your defect covered by this warranty, you have to be able to prove that it's a health or safety hazard.   If you have concerns in this area it is advised that you seek an attorney that can interpret the legal process and remedy...

 

Not All Defects are ‘Defects'

  

Not all defects are reasons to sound the alarm.  There are specific rules that determine whether or not a defect qualifies as something that must be addressed.   An example would be a small crack in the interior of your new Columbus area would be considered to be a normal defect.  Cracks that would need to be repaired are those longer than 3/16 of an inch, according to the National Association of Home Builders'® guidelines for performance.  Although pesky, hammer marks or nail pops only count if you can see them from more than six feet away.

 

Document Document Document  

  

After a real defect has been identified, document everything.  Keep a log and take photos.  Ideally this will be smoothly worked out by your builder but if it is not you will need your documentation should you decide to pursue other actions.  For added peace of mind, you may want to hire an independent inspector or structural engineer, to give your house a full examination prior to closing and moving in.

 

Buying Brand New Columbus Area Home can be enjoyable when you work with a REALTOR® like me who has the knowledge and experience to guide you through the process.  Call me today at 614-273-6406 or email me at Vanessa.simmons@realliving.com

LINKS:

Implied warranty - http://www.legalmatch.com/law-library/article/implied-warranty-real-estate-contract-lawyers.html

 National Association of Home Builders - http://www.nahb.org/

Contractor - http://en.wikipedia.org/wiki/General_contractor

For More Home Buying Tips See:

First Time Buyer... Please Read...

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Tags:
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Rainmaker
301,963
Dan and Amy Schuman
Howard Hanna Real Estate Services - Solon, OH
Luxury Home Specialists

Great tips Vanessa. I haven't seen a lot written about new construction, but it certainly is still an option for many buyers.

Mar 30, 2009 05:05 AM #1
Rainmaker
184,166
Wanda Thomas
Montana Homestead Brokers, Broker, CRS, GRI, SFR, RN - Billings, MT
Billings Montana Real Estate

Good post and I really like the links.  Our new construction business keeps chugging along, only much slower.

Mar 31, 2009 06:42 AM #2
Rainer
86,824
Mike (Inspector Mike) Parks
The Parks Consulting Group, LLC - Circleville, OH
Inspector Mike

"After a real defect has been identified". The only way to know if a true defect exists would be to compare in the what is code. In Ohio that is The 2006 Residential Code of Ohio (RCO).

"you may want to hire an independent inspector or structural engineer". When hiring an expert it would be wise to see if that inspector has the knowledge of your local codes. Also your state law may prohibit some individuals from inspecting certain components of the home. Ohio has such laws.

 

Mar 31, 2009 12:17 PM #3
Rainmaker
43,289
Vanessa V. Simmons
Real Living HER - Columbus, OH
Realtor

Dan and Amy I had thrown in the towel on the new builds and then a few weeks ago one of my buyers wrote an offer on a spec.  It is an option and the deal was amazing.  The builder dropped the price almost 40K.

Wanda thanks for the stopping by and the comments

Mike you are right thanks for stopping by and good to know the Ohio law info and I will refer you to my clients should the need arise. 

 

Mar 31, 2009 11:05 PM #4
Rainer
42,329
Wendy Welborne-Kimery
Keller Williams-Lake Norman Mooresville,NC - Mooresville, NC

Good info here Vanessa.

Apr 01, 2009 02:01 AM #5
Rainer
821
Robert Wallace
Builder Buyer Services Group Northwest - Portland, OR

Vanessa,

I have seen the conflict between Builders and New Home Buyers for years.  I'm working with to help this large problem. 

Check our www.bbsgonline.com  , were working on getting National Coverage at this time.  are saying is "We relieve the Burden from the Builder, the Hassle from the Homeowner, and the Angst from the Agent".  We are a independent 3rd party that represents the New Home Warranty.

If you have local New Home Builders in your are with problems, you may want to recommend this service to them.

Nice Post!!

Jul 14, 2009 04:48 AM #6
Rainmaker
77,377
Joan Defenbaugh
Keller Williams Capital Partners Worthington & Northwest Columbus - Columbus, OH
REALTOR® Defenbaugh TEAM

All interesting comments. I am a Realtor with the Coldwell Banker King Thompson New Homes and Condos Division in Columbus, Ohio. The New Homes and Condos Division represents many builders who have specs, pre-sales as well as condo conversions (old buildings underneath new interior finishes.) Due to the recent history of the real estate industry overall, many builders have "new" homes that are actually 5 years old and have never been occupied, or for that matter, finished. Still a good option for a potential buyer nonetheless.

I like the idea of an outside warranty similar to an American Home Shield-type of warranty. I am not so sure about any new insurance companies that may or may not be around in a few years.

Selling new construction is a fascinating and fun career. I didn't think I would be as excited about this type of residential real estate sales, but I have been pleasantly surprised. The New Homes and Condos Division has been in place for a while, so joining up was easy for me.

I do like when there is a co-op agent involved who knows how to advise their client thoughout the process. I think that some co-op agents are not knowledgeble about the actual paperwork, so they tend to shy away. We do represent the builder, so it's so helpful to have a buyer who is represented by a buyer's agent who knows the ins and outs of new build purchases.

Makes me want to buy new too!

 

 

Jul 20, 2009 09:52 AM #7
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Rainmaker
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Vanessa V. Simmons

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