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Goldilocks and The Three Builders

By
Industry Observer with RETIRED / State License is Inactive Inactive License Oregon

Goldielocks and The Three Builders

Once upon a time, in the land of real estate, there were three buyers . . . who wanted to have their houses built.

Builder #1 - This was a "spec" home.  Brand new construction, already built, move-in ready.

Buyer liked it and bought it.

Builder Warranty was the WORST I had ever read . . . all ONE PAGE of it!

Yes, the terms "Buyer to notify builder within a reasonable amount of time . . . " was very COLD to my palette.

Builder #2 - This was a "custom" home.  Brand new consturction with the buyer's own design/floor plan, purchase of the lot, etc.

Builder Warranty was NOT GREAT . . . all THREE pages seemed to contain coverage.

Not having the Builder Warranty TRANSFER . . . was HOT to my palette. 

Builder #3 - This wasn't a custom home, or a spec house -- this was right in the middle.  The builder owned the lot and decided what design/floor plan to use.  The buyer selected everything about the home, from floor to ceiling, interior to exterior.

Builder Warranty was PERFECT . . . all 42 pages of it.  But it detailed everything, provided time lines, was transferrable to subsequent owners, was clear and easy to understand.  

 

I would recommend the 2-10 Home Buyer's Warranty!  It's JUST RIGHT . . . 

Posted by

 

 

Carla Muss-Jacobs has RETIRED effective May 1, 2018

Representing Buyers in the Portland Metro Real Estate Market | Clackamas Multnomah and Washington Counties | Since 1999

Carla Muss-Jacobs, REALTOR®, ABR, CEBA, ePro
Principal Broker/Owner ~~ INACTIVE

Carla Muss-Jacobs' retirement became effective May 1, 2018

Direct: 503-810-7192 

 

All Rights Reserved © 

Comments (15)

Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Excellent, we learn from others and you have just passed along very useful information.

Aug 18, 2015 08:35 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

The third home definitely had it all.  Perfect for Goldilocks.

Aug 18, 2015 08:38 AM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Little consideration is given to warranty by most buyers but in reality it should be a make or break proposition.

Aug 18, 2015 08:55 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Carla...I insist on a 2-10 warenty any time my clients build or buy new.

Aug 18, 2015 09:24 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Carla- buyers need to have a professional with them to make sure they don't miss anything, and that's including a good warranty. 

Aug 18, 2015 10:25 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

The builder who build my office offered a 2-10.  And while I certainly recommend such a warranty I'm wondering if either builder 1 or 2 would if it was in an offer and meant a sale?

Aug 18, 2015 11:19 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Tammy Lankford our contracts are specific that a Builder's Warranty is in the contract. What that warranty is, comes from the builders.  They warrant, not the buyer, so what they submit is what they have in place.  That said, I try to get the builder to provide the 2-10, but they don't have to.  All the builder has to do is supply the buyer with one.  Doesn't say which.

Aug 18, 2015 12:12 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

The type of warranty provided by builder is something we can address in our special stipulations where there isn't a contract if the builder won't provide that 2-10 the buyer is asking for in the offer.  We of course have had builders who say no to that.  Heck we even had one who tried to say if you want an inspection you have to use "this guy" and if you are getting a loan you have to use "this bank".  That builder didn't last too long around here.

Aug 18, 2015 01:14 PM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

The builder builds houses.  All three do a very fine job.  All three of them, in the various scenarios above, have a very good reputations.  The warranty they provide is their warranty.  If the buyer doesn't like it, or it's one page, that doesn't mean they didn't build a good house.  The buyer can always ask, as we do.  The builder can say "no" and they do.  Not providing a warranty that makes me feel "just right" doesn't mean they are bad builders who need to be run out of town . . . OMIGOSH, that's funny!

Aug 18, 2015 01:36 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Carla, It is important for home buyers to work with a good buyer agent who can advice them.

Aug 18, 2015 08:57 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Carla. In my view the most crucial thing is the home and how I feel when there. Second consideration is the warranty which by and large eliminates more than it covers.

Aug 18, 2015 10:10 PM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Carla - Builder warranties are important, and it is amazing how many buyers don't even consider them prior to making a purchase. Builders that stand behind their product may make their home much more valuable than builders that don't.

Aug 19, 2015 03:35 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Carla, Sometimes a warranty is not worth the paper it is written on. I'm representing a buyer on a new construction home. We went into great detail discussing the home warranty ... it's a good one. 

Aug 20, 2015 12:02 PM
Roy Kelley
Retired - Gaithersburg, MD

This is good reading for prospective home buyers.

I hope you are having an outstanding month.

Aug 25, 2015 06:38 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I learned the hard way that builder's warranties can be completely meaningless.  Just because it's new doesn't mean it won't have major issues.   How major issues are dealt with, and for how long, are very important to know up front.

Sep 22, 2015 11:18 AM