FYI ..... New Home Buying .....

[blueoval01]

In the past few weeks I've got tons of questions thrown at me about New Home Builders from clients. So I felt it best to share the knowledge .........

HADD-Consumer Protection (http://www.hadd.com/)
"When construction defects, predatory lending schemes and arbitration are party to this investment, it becomes a painful, expensive burden for the homeowner and their family."

J D Power Ratings on New Home Builders (http://www.jdpower.com/cc/homes/jdpa_ratings/FindHomeBuilder.jsp)

Take it for it's worth if your looking.

http://www.talonclub.com/forum/images/smilies/thumbsup.gif

[dboat]

Interesting, only because when I was a young pup, Pulte and KB were crap homes.. I guess they have gotten their act together.. since they showed up well in several markets.

Thanks
Dana

[my2002lightning]

Very good info, Mark! Thanks as always! :tu:

[TP Derrick D]

Interesting, only because when I was a young pup, Pulte and KB were crap homes.. I guess they have gotten their act together.. since they showed up well in several markets.

Thanks
Dana
KB is still crappy. Me & wifey was in the market a couple years ago and looked at KB . Noticed poor quality in the model homes and they should be top notch since its your selling point.Then we saw a news report on some of the KB homes falling apart, in Keller I believe . Some of the homeowners in Arlington filed a law suit because their homes were built on a former military training range and unexploded ordanances were being found by homeowners digging in their lawns. The homeowners went on a public protest against KB. After we saw the first TV report we scratched KB off our list of builders. I pass the Arlington neighborhood everyday and wonder how it came out.

[blueoval01]

Interesting, only because when I was a young pup, Pulte and KB were crap homes.. I guess they have gotten their act together.. since they showed up well in several markets.
Thanks
Dana
Dana, I don't totally agree with JD Power findings either. But, I guess they can only base their data from reports on the builders OR actually filled out "Customer Satisfaction" report cards.

There is one builder that I've delt with that has had some of the best customer satisfaction & service I've seen, but they aren't even listed by JD Power. Go figure. :(

[dboat]

Dana, I don't totally agree with JD Power findings either. But, I guess they can only base their data from reports on the builders OR actually filled out "Customer Satisfaction" report cards.

There is one builder that I've delt with that has had some of the best customer satisfaction & service I've seen, but they aren't even listed by JD Power. Go figure. :(


Almost two years ago I was looking at houses in Vegas because I thought I was going to move there. DRHorton had some beautiful homes there and I had found one I was ready for, then I came across one with a central AC unit for the garage(I was in love at that point). Anyway, it was disappointing to see them rated as an also ran..
There were no ratings for Erie, but that figures.. My builder has been here for 40 years building about 30 houses per year with no one saying anything bad about him.. I am pretty happy myself..
But I agree with you, should JDPowers be the deciding factor? not sure, but where else can you go?
Thanks Mark.
Dana

[blueoval01]

But I agree with you, should JDPowers be the deciding factor? not sure, but where else can you go?
Thanks Mark.
Dana http://www.talonclub.com/forum/images/smilies/smile.gif I drive through the community during a weekend day (this time of year) and find someone out working in their yard. Stop. Introduce myself. And just ask if they are happy with the builder.
Then I relay that info to my client.
It's just part of being a good RE agent. IMHO

[REXRENEGADE]

Some of the homeowners in Arlington filed a law suit because their homes were built on a former military training range and unexploded ordanances were being found by homeowners digging in their lawns.
That is the city of Arlingtons responsibility, and fault because they issued the building permits to Kaufman Broad (KB).
I think alot of the quality of a home depends on the city where built. I know people have had issues with a builder(s) in a certain city, where that same builder in another city has not had any.
I am about to close on a home in Euless built by KB and we have not had any major problems. The city of Euless has very strict inspectors compared to other communitys. KB is one of the largest homebuilders in the US, and when you build that many you will have problems somewhere.
My 2 cents.

[Tex Arcana]

And you people wonder why I get so head-up over ripoffs by corporations and our elected officials?? :(

That HADD website is an excellent starting point. Knowing someone with either a background in home building or engineering is another way to go.

When the wife and I were looking at building the house we're in now, I went over the ones in different phases of construction with a fine-toothed comb, and compared them with their competitors (Darling Homes vs. David Weekly vs. Pulte vs. true customs), and chose Darling. And the JDP site (http://www.jdpower.com/cc/homes/jdpa_ratings/FindHomeBuilderResults.jsp?builder=Darling) kinda confirms it.

With the laws they way they are now, and the crap they're allowed to get away with, there's not much left for the consumer, except to stop buying new homes. At least that way you can be assured it was built to a higher standard, and with a competent inspection, can be assured the home you get is a good one. Maybe that'll wake the companies and legislators up enough to realize theyr'e doing EVERYONE a disservice. :flaming:

[jim woods]

Curtis, somethings I want you too look out for.
I purchased a new 3100 sf home for KB in 1998 (New construction). I purchased about a month before construction was finished. I was not the original purchaser of the lot or home. A married couple loss their fianacing a month before closing on house and before it was finished. I bought it much less than most of the KB home owners on the new development(it was the last house being built in this neighborhood.I also got it cheaper because I knew what to look for and negociated on it.

The Main thing you need to know that KB builds more afortable homes with not some much extras/basics.Even the upgrades are not really upgrades compare to other builders.I am not knocking them.This is what they build and hence the Cheaper price.Most of their complaints are people expecting more and for paying less. You are paying for a Dawoo 30 inch TV not the same as paying for a 30 inch Sony.Not nocking KB. This is just the type of home they build for a reduced price. On average 15-30 thousand less than what another builder builds the same neighborhood for.

Now that thats out of the way.You need to look for these items.These are items that Some builders will try to get over on the buyer because most home buyers assume the builders will build the house "Right"

1. Be sure to go into the atic and measure the insulation to what city or building code is. It should be the same Depth all over.

2 Get a second opinion on how much/many Tons you AC should be and if you need two units depending on SQ Feet of house. Builders are well know for havinge AC contractors put less tons than needed. I.E. I see many new homes being built-A 3000 sq house will only have 1(5 ton unit). That is not hardly enoughf in Texas heat.

3.Many homes are being built with the Long lasting Siding on eves overhangs and on sides of home>This is great for not having to paint every 5 years.Siding is supposed to be installed over wood. They are just putting siding up NOT OVER ANY WOOD. What a joke. Can you imagine some parts of the house not being framed up without plywood? Just siding. It happens all over the place.

4 Most new home construction plumming is pure JUNK. Be ready to replace for leaks ect. in 1 to 5 years.You may have a pretty high quality MOEN fixtures your house but what you cant see if the pluming to it. Pvc,copper pipes,drains ect. Basically all your pluming under the sinks,cabnets ect. is below building codes(junk) and no joke have been bought at Walmart clearnce table at times.

5 Widow leaks and door water leaks moisture is really bad here new home construction. These problems do not "show" up for 1 year later most times so the buliders dont care for the poor quality install becase its after the 1 year waranty. I would get a high pressure water hose and spray all the windows /seams.If water gets leaks in the inside the house, you got a problem.Dont let them fix this problem with 1$ tube of caulk. This is an install problem and the Whole window need to come out and fix correctly.Do this before final closing singnature. You need to actually see them taking the window out. Then come back and do leak test again.

These are just the main problems with new home construction in the price range from 90 -200K which most new homes are priced at in DFW. The average new home construction is 140K in DFW. You just need to know what to look for and dont expect alot of quality for a cheaper price. I

The best way if you can afford it.Try to buy a LOT only in the neighborhood you want. Then have a Local builder , who builds 30 homes or less a year build what ever home you want on the lot. A local non mass production builder will build a better home because his name is riding on it. If he builds a poor home and the word get out, it will hurt him alot more than a Huge builder.

One other item.On the last walkthrew the new house. Make a list of every problem you find no matter how small it is. The builder will tell you letssign the paper work and will get thses minor thing fix later.It will takes Months to get it fix later and they will do a half ass job since you bought it already. Get fix first and fix the correct way.

[REXRENEGADE]

Thanks Jim! :tu:

I will take this info to heart. This is my first home and it is a tedious process and sometimes a real pain dealing with everything. We are suppose to close within the next 3 weeks. So I will keep you all posted on what transpires. Wish me luck please.
:D

[blueoval01]

............. Wish me luck please.
:D http://www.talonclub.com/forum/images/smilies/thumbsup.gifhttp://www.talonclub.com/forum/images/smilies/thumbsup.gifhttp://www.talonclub.com/forum/images/smilies/thumbsup.gifhttp://www.talonclub.com/forum/images/smilies/thumbsup.gifhttp://www.talonclub.com/forum/images/smilies/thumbsup.gif

[jim woods]

Your first home is a really exciting experience.I did not list the above to dimmer you excitment.I just want you to know what to look for.The joy of having your own place not renting/leasing makes you feel wonderfull.

I am not sure in Texas but this is something I would defiatly ask KB. Ask KB if they will sell you the home WITHOUT you signing a waiver or clause that YOU will resolve all disputes thew a 3 party arbitrator.

Most new home builders will have you sign this document at closing and many people do not know what they are sighning.This document states that if there are any disputes,issues, of the constuction of the house, and warranty YOU the BUYER will resolve the problem threw a third party arbitrator. His decsion is final. In others words, if a problem comes up , You will not be able to sue KB for funds in a court of law.

I am not sure in Texas if builders MAKE you sign this.Maybee some other people here would know.

[Tex Arcana]

Your first home is a really exciting experience.I did not list the above to dimmer you excitment.I just want you to know what to look for.The joy of having your own place not renting/leasing makes you feel wonderfull.

I am not sure in Texas but this is something I would defiatly ask KB. Ask KB if they will sell you the home WITHOUT you signing a waiver or clause that YOU will resolve all disputes thew a 3 party arbitrator.

Most new home builders will have you sign this document at closing and many people do not know what they are sighning.This document states that if there are any disputes,issues, of the constuction of the house, and warranty YOU the BUYER will resolve the problem threw a third party arbitrator. His decsion is final. In others words, if a problem comes up , You will not be able to sue KB for funds in a court of law.

I am not sure in Texas if builders MAKE you sign this.Maybee some other people here would know.


Most builders make it seem like one is required to sign the waiver; likely, an attorney is needed to answer this one. I know I signed one, but then again I knew the intimate details of the house going up, and what things I found even 2 years down the road were covered (lucky that I picked the right builder).

[jim woods]

Yea I found out. Its mandatory in Texas to sign this waiver for third pary arbitration when you buy a New home construction in Texas.It was made into law.New home builders paid/ donated large sums of money to politcans to push this. They call it Tort Reform. It supposed to keep law suits down.

New home builders push for this law- paid/donated to the ploliticans to make it pass.
They just wanted protection so they could build homes anyway they wanted to and the home owner has no recourse.It sucks!

I

[Tex Arcana]

Yea I found out. Its mandatory in Texas to sign this waiver for third pary arbitration when you buy a New home construction in Texas.It was made into law.New home builders paid/ donated large sums of money to politcans to push this. They call it Tort Reform. It supposed to keep law suits down.

New home builders push for this law- paid/donated to the ploliticans to make it pass.
They just wanted protection so they could build homes anyway they wanted to and the home owner has no recourse.It sucks!

I

And you people wonder why I get so pissed off at this sh*t?? :rolleyes:

[dboat]

And you people wonder why I get so pissed off at this sh*t?? :rolleyes:


I am not so sure this is a "bad" thing.. the problem is not with you or me but with the 2%'ers that sue for anything and everything and cause the cost of everything to go up.. Arbitration is not a bad thing, been there before.
Dana

[blueoval01]

And you people wonder why I get so pissed off at this sh*t?? :rolleyes: John, you might consider joining up with these folks ......
Consumer Advocates (http://www.naca.net/)

[Tex Arcana]

I am not so sure this is a "bad" thing.. the problem is not with you or me but with the 2%'ers that sue for anything and everything and cause the cost of everything to go up.. Arbitration is not a bad thing, been there before.
Dana

Except that, in this case, the arbitration is stacked against the consumer. Of all the people who buy homes, 2% may actually sue, but a good 80% or more will do nothing and sit there and bitch, and fix the problems themselves, when in fact the problems were the responsibility of the builder. The remaining 17% will try the arbitration route, and typically fail, especially if the builder is fly-by-night, and is gone by the time they can tag them down.

Way too many builders are getting away with it, too. I can appreciate the desire or need to make a profit, but not at the expense of the consumers in complete ripoffs, nor at the expense of the "morality" these people espouse. We rip lawyers for being money-grubbing bloodsuckers, but forget about the politicians who are the same kind, or the corporate fatcats and others who do exactly the same thing. :flaming:

Bah... I said I was giving up on this crap, and there you go tossing a match on my pool of gasoline, you b@5t4rd!! :nono: :rll:

[Tex Arcana]

John, you might consider joining up with these folks ......
Consumer Advocates (http://www.naca.net/)

I wonder if they'll give me a job... :d