Recently, one of our Summit County buyers closed on their new second home purchase. The builder has a good reputation in our market, so was a bit disconcerted when the buyer (following our advice), insisted on having an independent professional home inspection by a qualified third-party inspector prior to closing. As it turned out, the inspector did find a couple of items that had been mised by both our buyers and the builder at the punch list walk-through. So, those items were added to the punch list.
In addition, in spite of his reputation, the builder had delayed closing several times, and he also did not have the punch list completed prior to closing. So, we asked for a hold-back, money to be held in escrow until the builder completes the work agreed to. Many builders will refuse to do this, but this one cooperated (in a grumbling fashion). Six weeks after closing, he still had not completed the work, leaving the buyers with the option to have the work completed by someone else, and taking the escrowed money to pay for it.
When buying new construction, most people figure that the builder will complete a punch list, and that defects in materials and workmanship will be taken care of for a year under the builder's warranty. But Barry Stone, in one of his Inspector's in the House columns, cautions that an inspection should be a necessity in ANY home purchase. Many builders either do not perform on the punch list, on the one-year builder's warranty, or as he explains in one case, mis-interprets the warranty in his/her favor. For example, one reader said that the builder would only recognize conditions that were noticed during the original, pre-closing, walk through. This is a crucial time to have good Realtor representation, and to not worry about being polite. Demand an independent inspection; demand an escrow if necessary; and be willing to go to court as a last resort. Some builders feel they can skate on the warranty, knowing the new homeowner will fix the problems themselves rather than go to court. But, small claims courts are made for issues like these. Inexpensive, relatively speedy results can be had in this "people's court" where neither side has an attorney, and the one with the best documentation proving his/her side usually wins. It's your SnowHome. Why risk future problems when they are so much easier to handle up front? |
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