Buying a new home (bank owned, short sale, real estate)

[ernbar]

Is is advisable to have a home inspection and hire an attorney for a closing regarding a house to be built by a well known builder like Ryan Homes? The lady at the sales office says its up to me since a law firm will be handling the paperwork for them. Will a home inspection be necessary in this case where the home is being built and will be sold as new with a builder's warrantee?

[kyle19125]

One should ALWAYS schedule a Home Inspection. It costs around $200 and is invaluable even for a new home and offers peace of mind. Electrical/plumbing may have been installed improperly or the home-site might have drainage issues or any of a number of other potential issues. Rest assured they'll cost more than $200 to correct.

[cfIfan]

In respect of hiring an attorney for the closing you do not need to do this. A title company will already be being used by the builder and they will be issuing you with title insurance. If you want to hire an attorney it really would be a waste of your time and money because the builder will not use them, and they will be doing the same work which is already being done.

The property inspection on the other hand is different. Regardless of whether you are buying a brand new builder home, or a resale home (short sale, bank owned or other), I always recommend having an inspection. The builder is going to schedule various walks throughout the construction phase, but keep in mind the person doing the walk doesnt work for you, they work for the builder. By paying a home inspector what i consider an insignifficant amount of money when considering how much you are paying for a house, they are checking the house for you. It is for piece of mind more than anything. Are you using a realtor because he or she should have already recommended this to you. Make sure you get a home inspection because when you move into the house and find issues, some builders are good at fixing them promptly, others are not and when you have closed it can be a pain to schedule them to come out. I can tell you I have postponed closings on account of issues with a new build home and builders are very quick to resolve those issues, but thats the sort of thing you dont need to worry about if your realtor knows what he is doing with a builder.

Originally Posted by ernbar

Is is advisable to have a home inspection and hire an attorney for a closing regarding a house to be built by a well known builder like Ryan Homes? The lady at the sales office says its up to me since a law firm will be handling the paperwork for them. Will a home inspection be necessary in this case where the home is being built and will be sold as new with a builder's warrantee?

[Broker Dave]

Agreed, a home inspection is a good move.

Also the on site agent works and represents the builder first and foremost not you so it makes since to have an attorney or real estate agent follow you from the beginning.

Most people think that they get a better deal if an agent isn't involved, little known fact is the onsite agent makes a higher commission if a Realtor wasn't involved. This was done to get the onsite agents to exclude Realtor's as much as possible, I only know of one builder that's changed this practice.

Negotiation is just one skill of a good Realtor.

Hope this helps,

[Justin Time]

Originally Posted by cfIfan

. . . when you have closed it can be a pain to schedule them to come out. I can tell you I have postponed closings on account of issues with a new build home and builders are very quick to resolve those issues . . .

+1^

I would suggest that you get the inspection and that you do your own visual inspection as well. Some inspectors are VERY thorough (considering that they can only inspect what is visually accessible), but they won't care if you ordered cherry cabinets and the builder used maple. You need to check all of those "little" details.

I would have either an attorney or a good realtor on my side as well. Someone needs to represent your interests in this major purchase.

I completely agree with cfIfan's post: It can be VERY difficult to get the builder to fix things AFTER closing. The sale should be contingent upon resolving ALL issues. The builder will have motivation to fix things IF the sale depends on those repairs or alterations. Close AFTER ALL conditions have been satisfied. If you close before conditions have been fixed, they may never be fixed. Buying a house is like a new job: you can ask for anything during the interview (and you might get it). Good luck trying to negotiate for a parking space (or whatever) after you have accepted the position.

[beckycat]

Make sure that you get every little thing in writing. We had a good builder but we verbally agreed to do a few things that he wouldn't honor once under contract.

[ernbar]

A couple of people said the same about the attorney part, duplicating what the tittle company will be doing. Thanks for all your input.

[annerk]

A title company can NOT offer legal advice! You're spending how much and questioning the need for an attorney? Really?

Get an attorney, get REAL legal advice, and be protected. Period.

[ernbar]

Attorney and inspector it is. Better to be safe than sorry later on. Again, thanks for your responses.

[totsuka]

Yes get an inspection, but I think the going rate is closer to 500 dollars. Also, make up your own inspection list (available off the net) and do your own inspection. Start with the attic and work down and then go around the home.

- Go on the web and research the company that built your home looking for common complaints from
people that bought from them in the past.

- Ask the builder what brand of paint was used on the outside of the home.

- attic - Is there going to be adequate air-flow?

- Ceiling fans? or the connection box is there? if so, is it braced correctly?


- blown in insulation or the traditional roll down? I have the blown in stuff and it is very good.

- Hurricane braces? Just because they are suppose to "build to code" does not mean they will always do it.

- Inside - Look at the brand of fixtures ..

- I think all new homes use the CVPC (Plastic) pipes now vice copper which has different type of shut off valves. There were problems in the past with these pipes but I think they have the problems worked out now. Locate the shut off valve for the home just in case you have a problem inside your home.

- A/C - What brand? Goodman (cheapest), Trane (very good) - is it the right size for the house? Most likely it will be the "builders model" which is the cheapest. Fire it up and see how loud the outside unit is and the same with the inside air handler.

- Hot Water heater - does it have a drain pan with drain under it?

- Windows - do they all open easily? or stick? open each one

- Return a/c vents in each room? (Makes your a/c operate better). Is the return located close to the
supply?

- All the doors open and close correctly?



My home is only 6 years old and I have to regrout the tile in the bathroom(s), the builder did not hook
up the light outside the garage door (not wired to the breaker box, nothing), and no porch light(s), I thought by code each home had to have at least one porch light, but somehow this builder did not do it, the a/c is Trane and very quiet; I'm glad I did not pay what the 2 previous owners paid for this home!. The rest of the home is very nice and I'm happy with it. If I had my way I would put in better windows (Impact windows, tinted), dual flush toilets, porch light(s).

Good Luck!


Good luck!