Buying a house from a known bulider (Houston: real estate, appliances)

[acllogistics]

We are planning to buy a house from a master planned community still in development I have heard from these thread that it is a good idea to get your own home inspector? We still have not signed the contract to purchase the house but my question is should i have this put in writing that I will get the new house inspected before the final sale? I don't want any problem wih them do doing the work properly?

[Wysiwyg]

your earnest money ($1000?) means you can cancel anytime for whatever reason.
yes you can bring inspectors thru out the build phase, just maybe during the carpenters lunch hour or any time work is slow. the city have inspectors that post red and green stickers for the builder. the builder also has QA people that will work with you on your 1 to many 'final' walkthrus (if needed) and they will fix everything, especially if they need the money to build the other houses in your community. and because they are required by law to tell the next buyer why you didnt continue with the purchase (something like that)

[dcg123]

I'ts always a good idea to have the home inspected. Also there's some great sites for new home builder reviews. Now's the time to obtain some fantastic seller concessions.

good luck!

[RESteve]

Originally Posted by Wysiwyg

your earnest money ($1000?) means you can cancel anytime for whatever reason.

I think this needs to be clarified to avoid confusion. Please review the builder contract prior to signing to see what contingencies you actually have. With builder contracts, the only contingencies usually offered are those in relation to financing. For example: You can't get financing through their lender is x amount of days, then you will get your earnest money back.

If you put your earnest money down on the new construction, and expect to cancel at any time and get that money back, then you are in for a rude awakening.

As a real estate agent, I cannot practice law so it's important that you have that contract reviewed by an attorney if you have any questions regarding any of it's provisions pertaining to your situation.

In my experience, builders do not use the builder associations promulgated contracts so since that contract is obviously created to protect the builder, consult with your agent (if you have one) or if not, make sure you are 150% comfortable prior to signing.

[Wysiwyg]

I agree RESteve. please excuse my line of thinking I'd happily say goodbye to the earnest money if i've come to a conclusion that i might be ending up with a huge investment lemon.
I think there is also a clause that you can cancel and get your money back if the house dont get finished/closed at set dates

[JGallo]

Wait a minute.



EM (earnest money) does not mean you can cancel at any time. It is what it say's earnest money... meaning a deposit with your earnest that you are serious in pursuing a loan to close on the home. Because the builder will take that home completely off the market by law and put in your name until closing. I have been selling new homes since 2002 in Houston.



What you need to do is research builder's and their reputation out on the market, like bbb.org and or JD.Powers, etc..., experience and longevity is extremely important.



You do not want to buy from a seasonal no name builder that is just out there to build during housing booms ,make that money and then they get out. Even if they offer you high discounts, which we all do anyways. In Texas by law all builder's have to give you a 10 year structural warranty, so you want a builder that if you need to execute this warranty they will be around to service it.



Builder I work for we offer a 2+10 advantage warranty. First 2 years everything is covered thru us, even appliances.



Moderator cut: soliciting

[Wysiwyg]

Originally Posted by JGallo

Wait a minute.
EM (earnest money) does not mean you can cancel at any time. It is what it say's earnest money... meaning a deposit with your earnest that you are serious in pursuing a loan to close on the home. Because the builder will take that home completely off the market by law and put in your name until closing. I have been selling new homes since 2002 in Houston.

excuse me but whats the difference? yes it means you want the house and serious (its expensive) and the builder wants to sell you the house. some builders even bill you immediately for any non-standard feature/appliance - why? because the buyer can cancel anytime the deal goes sour or doesnt work out for him (loan, quality, location, whatever)*. to the builder it doesnt matter what reason, it can happen.