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new construction - unique issues

post #1 of 27
Thread Starter 
I'm trying to talk myself out of falling in love with a house we're considering buying.

It's a new construction.

I've already discovered one issue: it does not come with fridge, washer, dryer, so these will be added expenses.

What other issues are unique to a new construction?
post #2 of 27
We are also buying a new house. We would have been responsible for buying the washer & dryer, too. We are paying for: an upgrade to all hardwood flooring, all our appliances (that was our choice (we are picky), otherwise they would have given us $1500 towards the 3 kitchen appliances), an upgrade to ceiling lights, an upgrade to include central air, and a hood vent to the exterior.

Other things on the list that were extra but that we did not choose were: garage door openers, ice maker lines, recessed lighting, brick front steps, bay windows, ceiling fans, exterior floodlights, enlargements to the deck, chair rail, higher ceilings, crown molding on the cabinetry, additional electrical outlets, additional phone jacks, additional cable jacks, a programmable thermostat.

Is there anyone already living in the neighborhood? Drive by and talk to owners who are out in the yard. How long have they been living there? Are they happy with the house? How responsive is the builder to problems? What is the neighborhood like so far? How is the association? (mostly maintenance, or picky about the height of your lawn?) Google the builder and look for complaints against them. Ask your agent for the location of another community the builder has completed, preferably over 10 years ago, so you can see how the homes hold up over time. Talk to *those* residents, as well.

Often, with new construction, you can choose colors of siding, interior paint, cabinetry, etc., if you choose a lot that is early in the process. You can visit the site every day if you want to, and inspect the work as it's in progress. You will have to pay for some of your upgrades, but in this market, the builder may meet you partway, and give you a discount. You do need to be aware that there could be delays (another thing to check -- how often is the builder late?), and also that the closer to done the house is, the less you get to choose. New homes do tend to come with a warranty, too.

IMO, if it's a reputable builder, and you like the home & neighborhood, then it's worth considering.

Wendy
post #3 of 27
There are probably going to be landscaping issues. You don't have to be an ubergardener, but figure about $200 for some basic shrubs and a starter tree or two.

Window treatments- many pre-owned homes will let you keep the cheap miniblinds that are already installed.

In some state/municiplaities, they'll hit you with 'growth management fees' on new construction. The idea is that the newcomers are helping to pay for the new schools, fire stations, road-widenings, etc. that a population increase in an area can require. In parts of Florida, those can run you $10K or more in addition to the list price of the home if they're not included in the sales price.
post #4 of 27
Thread Starter 
Quote:
Originally Posted by anywaybecause View Post
Is there anyone already living in the neighborhood? Drive by and talk to owners who are out in the yard. How long have they been living there? Are they happy with the house? How responsive is the builder to problems? What is the neighborhood like so far? How is the association? (mostly maintenance, or picky about the height of your lawn?) Google the builder and look for complaints against them. Ask your agent for the location of another community the builder has completed, preferably over 10 years ago, so you can see how the homes hold up over time. Talk to *those* residents, as well.

Often, with new construction, you can choose colors of siding, interior paint, cabinetry, etc., if you choose a lot that is early in the process. You can visit the site every day if you want to, and inspect the work as it's in progress. You will have to pay for some of your upgrades, but in this market, the builder may meet you partway, and give you a discount. You do need to be aware that there could be delays (another thing to check -- how often is the builder late?), and also that the closer to done the house is, the less you get to choose. New homes do tend to come with a warranty, too.

IMO, if it's a reputable builder, and you like the home & neighborhood, then it's worth considering.

Wendy

Thanks. It's actually just four units, they are all just being completed so there is not a lot of room for changes/addons, etc. They are just now doing finishwork and all appliances, built in furniture, etc is already in. Which is actually a shame because I would have liked to upgrade the tub, and have w/d hookups added to the upstairs level. Ah well.

How do you research builders? I have googled this builder's name and only found two reviews - one very positive, and one poorly-written negative review. But, I know they have several developments that have finished in the last year...
post #5 of 27
Thread Starter 
Quote:
Originally Posted by beachmouse View Post
There are probably going to be landscaping issues. You don't have to be an ubergardener, but figure about $200 for some basic shrubs and a starter tree or two.

Window treatments- many pre-owned homes will let you keep the cheap miniblinds that are already installed.

In some state/municiplaities, they'll hit you with 'growth management fees' on new construction. The idea is that the newcomers are helping to pay for the new schools, fire stations, road-widenings, etc. that a population increase in an area can require. In parts of Florida, those can run you $10K or more in addition to the list price of the home if they're not included in the sales price.
The yard is being landscaped now and looks great. It's actually a very tiny yard (townhome style) so hopefully we wouldn't do anything other than stick the potted plants we currently have out there.

Good call on the window treatments!! I don't remember seeing any on the walkthrough of the model.

I will ask about that Growth Management Fees thing. I hope it's not the case because this is in an already existing neighborhood but that is really good to know.

I'm also nervous about the taxes, since it's brand new.
post #6 of 27
HOA FEES, taxes, quality of workkmanship, meaning will the quality of work hold up over time of you will end up replacing and red-doing thing over the years.... what quality of flooring is being used? window quality? plumbing fixtures?? etc
post #7 of 27
Thread Starter 
Quote:
Originally Posted by 1growingsprout View Post
HOA FEES, taxes, quality of workkmanship, meaning will the quality of work hold up over time of you will end up replacing and red-doing thing over the years.... what quality of flooring is being used? window quality? plumbing fixtures?? etc

no HOA at this property.

How do we determine the quality of flooring/windows/fixtures? If we ask the builder and they tell us, how do we know that what they say was used, is actually what was used?
post #8 of 27
Chances are that most stuff is builder's grade. However, they should have a Spec Sheet (Specification Sheet) available that gives a fair number of details, like the type and RU value of the insulation they are using, or the depth of the concrete foundation.

Yes, you do have to trust them, but IMO, you have to trust anyone you buy from. If you're buying an older home and someone claims to have encased all the lead paint, how do you know they really did it properly? When you're buying something as big as a house, there's always a risk.

If you can't find a lot about the builder online, then definitely visit other neighborhoods they have built. If the builder has a website, they probably have some of their other communities listed. You might also be able to check the Better Business Bureau to see if complaints have been filed.
post #9 of 27
During the first year after building, the house will settle and some cracks may appear in the drywall or foundation - with an existing house, the settling has already occurred so you know how bad it will be. The builder's 1 year warranty is worth nothing if they are no longer in business.

I have always left window treatments with the house. Cordless cellular blinds are $60 per window these days.

You can post on your local craigslist and ask buyers of that builder: "would you do it again?" or you can knock on doors.

Be very very sure to get a home inspection on new construction - an inspector you pick not one suggested by your agent.
post #10 of 27
Our new construction house is just about finished :.

Here, people MUST purchase home insurance through one specific private corporation that is sort of mandated through the government. At closing, all new homebuyers pay an insurance premium (ours is about $850), and the following is covered:
New home owners benefit from One Year Warranty Protection and Two Year Warranty Protection against defects in work and materials, and Seven Year Warranty Protection against major structural defects (MSD).
It also covers compensation for delays that fall outside of the guidelines, and delays for which proper notice of at least 90 days is not given. It was easier to make the decision to purchase new construction with some backup.
Also, we bought from a reputable builder. Past success and happy customers is a good sign, as is longevity of the company. We also did a pre-drywall inspection to see what's really behind the walls.

One thing to potentially consider is the land quality. Do you live near water? Previously a flood plane?

Oh and YES a private inspector! The DAY you move in if not before.
post #11 of 27
Thread Starter 
Quote:
Originally Posted by anywaybecause View Post
Chances are that most stuff is builder's grade. However, they should have a Spec Sheet (Specification Sheet) available that gives a fair number of details, like the type and RU value of the insulation they are using, or the depth of the concrete foundation.

Yes, you do have to trust them, but IMO, you have to trust anyone you buy from. If you're buying an older home and someone claims to have encased all the lead paint, how do you know they really did it properly? When you're buying something as big as a house, there's always a risk.

If you can't find a lot about the builder online, then definitely visit other neighborhoods they have built. If the builder has a website, they probably have some of their other communities listed. You might also be able to check the Better Business Bureau to see if complaints have been filed.
Thank you! I will check the BBB, also their website does have previous projects and that is a good idea to drive by! Thanks!

Quote:
Originally Posted by SleeplessMommy View Post
During the first year after building, the house will settle and some cracks may appear in the drywall or foundation - with an existing house, the settling has already occurred so you know how bad it will be. The builder's 1 year warranty is worth nothing if they are no longer in business.

I have always left window treatments with the house. Cordless cellular blinds are $60 per window these days.

You can post on your local craigslist and ask buyers of that builder: "would you do it again?" or you can knock on doors.

Be very very sure to get a home inspection on new construction - an inspector you pick not one suggested by your agent.
Oh, that's true. The builder's warranty is offered through a third party (?).

http://www.2-10.com/

so that is a little better, right? Also how do you suggest we find an inspector? Should we do that before we even make an offer (line up the inspector)?

Quote:
Originally Posted by sanguine_speed View Post
Our new construction house is just about finished :.

Here, people MUST purchase home insurance through one specific private corporation that is sort of mandated through the government. At closing, all new homebuyers pay an insurance premium (ours is about $850), and the following is covered:
New home owners benefit from One Year Warranty Protection and Two Year Warranty Protection against defects in work and materials, and Seven Year Warranty Protection against major structural defects (MSD).
It also covers compensation for delays that fall outside of the guidelines, and delays for which proper notice of at least 90 days is not given. It was easier to make the decision to purchase new construction with some backup.
Also, we bought from a reputable builder. Past success and happy customers is a good sign, as is longevity of the company. We also did a pre-drywall inspection to see what's really behind the walls.

One thing to potentially consider is the land quality. Do you live near water? Previously a flood plane?

Oh and YES a private inspector! The DAY you move in if not before.
Thanks! Good idea to look into that. No predrywall inspection as it's almost finished (aka, they are doing the touch-up painting right now. Land quality should be good - this site had a house built in 1902 on it that was torn down to make these four units. So hopefully, that is not an issue.
post #12 of 27
I had to buy my own daggone mailbox. Landscaping is far and away our biggest issue though.
post #13 of 27
They often cheap out on stupid things you don't think to look at. Friends of ours bought & the house ended up having all plastic vent covers in the floor - all it took was one person to step on them for them to break. Potentially dangerous, annoying & ended up costing them over $200 to replace all of them.

Take a close look at the light fixtures & bathroom fixtures as well. As pp said they will often use low quality or builder grade fixtures. They may function just fine but you may look at them & know that you'll want to replace them & that can easily added up to hundreds.
post #14 of 27
Thread Starter 
Quote:
Originally Posted by lisa_nc View Post
I had to buy my own daggone mailbox. Landscaping is far and away our biggest issue though.
oh! I need to find out where the mail will come, actually, and where the garbage goes too. Thanks!

Quote:
Originally Posted by lifeguard View Post
They often cheap out on stupid things you don't think to look at. Friends of ours bought & the house ended up having all plastic vent covers in the floor - all it took was one person to step on them for them to break. Potentially dangerous, annoying & ended up costing them over $200 to replace all of them.

Take a close look at the light fixtures & bathroom fixtures as well. As pp said they will often use low quality or builder grade fixtures. They may function just fine but you may look at them & know that you'll want to replace them & that can easily added up to hundreds.
Thanks! Those are very good things to look at. I guess I will spend some time turning the faucets on and off, etc.
post #15 of 27
Ooh, garbage reminds me . . . . our new community has private garbage pick-up (that's one of the things our HOA covers), b/c we're on a private street. We are *not* going to have recycling at all, so that's going to be a big change for us -- we typically have more recycling than trash, currently, and now we'll have to start taking our cans & bottles to the grocery store for the deposit return, and find places that accept drop-off of cardboard.
post #16 of 27
We're doing a new construction right now (actually, it's our second new construction as we had a house in 2002 that we had built as well). If it's already in the process of being built, you've already passed some of the issues (having to pull permits, get temporary electric up, etc.)

Right now, the issues you might be facing:

-Find out your deed restrictions and see if there are restrictions on things like animals, clothing lines, noise, garage doors/parking, sheds, etc.

-Do you need to have a sidewalk installed?

-Landscaping/grass/topsoil

-Mail box

-Getting gas/cable/electric/water/phone hooked up

-Getting your permenant stairs constructed for all exterior doors (nope, this is not standard with all builders and nope, you can't legally occupy a house until you have stairs built!). Sometimes they have temporary steps going in, but you'll have to finish them.

-Find out if you will need to install a permenant driveway. The construction/gravel driveway is meant to be temporary and is often not replaced by concrete/asphault by the builder. It may be required in your subdivision to do so.

-Final grade...your builder will most likely not put your final grade of topsoil down nor finish it to a smooth flat surface...you'll have to have it done. Likewise, landscaping aside, it will be a muddy disaster in the fall/spring, so you will need to have it seeded with straw laying down.

-An electric garage door opener with remote key pads and a child safety sensor. Find out if you're getting one or is your garage door the standard garage door that you have to go yank up and down (impossible for a short person like me! : )
post #17 of 27
[QUOTE=polyhymnia;14066774]

so that is a little better, right? Also how do you suggest we find an inspector? Should we do that before we even make an offer (line up the inspector)?[/QUOTE

You could find one here:

http://www.inspectionnews.net/home_inspection/

Or, ask around (not your realtor!)

I would do a brief phone interview: how many years in the business, how many inspections per year, what special training do you have? What kind of defects do you typically find in new construction? How long does a typical inspection take? After the basic questions are out of the way, ask what they think of home builder X and builder Y. They may have something interesting to say. You want to find one who won't whitewash the home.

You also want one well trained... I passed a "home inspector test" online with no studying or prep. For about $500, I could be a home inspector with a national certification. That would not be particularly fair to the customers, as HI need to know local code.
post #18 of 27
Quote:
Originally Posted by polyhymnia View Post

I've already discovered one issue: it does not come with fridge, washer, dryer, so these will be added expenses.

What other issues are unique to a new construction?
Most houses you buy will not come with fridge, washer or dryer. The people who move out usually take those items with them.
post #19 of 27
Thread Starter 
Quote:
Originally Posted by AllyRae View Post
We're doing a new construction right now (actually, it's our second new construction as we had a house in 2002 that we had built as well). If it's already in the process of being built, you've already passed some of the issues (having to pull permits, get temporary electric up, etc.)

Right now, the issues you might be facing:

-Find out your deed restrictions and see if there are restrictions on things like animals, clothing lines, noise, garage doors/parking, sheds, etc.

-Do you need to have a sidewalk installed?

-Landscaping/grass/topsoil

-Mail box

-Getting gas/cable/electric/water/phone hooked up

-Getting your permenant stairs constructed for all exterior doors (nope, this is not standard with all builders and nope, you can't legally occupy a house until you have stairs built!). Sometimes they have temporary steps going in, but you'll have to finish them.

-Find out if you will need to install a permenant driveway. The construction/gravel driveway is meant to be temporary and is often not replaced by concrete/asphault by the builder. It may be required in your subdivision to do so.

-Final grade...your builder will most likely not put your final grade of topsoil down nor finish it to a smooth flat surface...you'll have to have it done. Likewise, landscaping aside, it will be a muddy disaster in the fall/spring, so you will need to have it seeded with straw laying down.

-An electric garage door opener with remote key pads and a child safety sensor. Find out if you're getting one or is your garage door the standard garage door that you have to go yank up and down (impossible for a short person like me! : )
Thank you!! These are good things too. There's no driveway/garage, landscaping is already taken care of (although we need to find out what is left - they said it's not finished, but I don't know what is being added), steps to the side door are installed too, and the sidewalk and fencing is put up. I definitely need to get a copy of the usage restrictions. we saw a stand-alone townhouse last week that has a limit of two pets!! We already have two cats and are thinking about getting a dog, so that was right out. I will ask about the mail situation.

Quote:
Originally Posted by SleeplessMommy View Post

You could find one here:

http://www.inspectionnews.net/home_inspection/

Or, ask around (not your realtor!)

I would do a brief phone interview: how many years in the business, how many inspections per year, what special training do you have? What kind of defects do you typically find in new construction? How long does a typical inspection take? After the basic questions are out of the way, ask what they think of home builder X and builder Y. They may have something interesting to say. You want to find one who won't whitewash the home.

You also want one well trained... I passed a "home inspector test" online with no studying or prep. For about $500, I could be a home inspector with a national certification. That would not be particularly fair to the customers, as HI need to know local code.
Thank you! Those questions are great.

Quote:
Originally Posted by A&A View Post
Most houses you buy will not come with fridge, washer or dryer. The people who move out usually take those items with them.
Really? I wonder if it is regional, because all of the other places we are looking at come with fridge/w/d. Interesting. Thanks.


Also I think maybe "new construction" doesn't mean exactly what I think it means! Basically, this property is on an existing, established street in the city - they tore down one house on a lot and put up four townhomes in its place. So I think a lot of the external things are already sorted.

Although I do need to ask about gas - I think it's not connected, and don't know if it is possible to get a connection put in A gas stove is negotiable but I will still be sad not to have it.
post #20 of 27
Quote:
Originally Posted by A&A View Post
Most houses you buy will not come with fridge, washer or dryer. The people who move out usually take those items with them.
Around here they typically do come with the house. If the sellers want to take anything with them that is a "fixture of the house" it needs to be specifically excluded in the contract. But that may be regional as the PP said.
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