What are the pros and cons
of buying a brand new home?
What a joy it would be to own a home that
required little, if any, maintenance for 5 or 10 years. This is a major
attraction of buying a new home. There's no need to fuss with remodeling
and repairing. You simply move in and enjoy. That is, unless you have
the misfortune of buying a lemon.
Several years ago, a couple bought a new home
in a small development in Marin County, Calif. They thought they'd
lucked into the home of their dreams until one house after another in
the project developed similar problems. First, the windows and skylights
leaked. Then, the drainage systems failed. Finally, water seeped through
some exterior walls. The only recourse was to sue the builder. He,
however, had fallen into financial hard times soon after building the
development.
New homes are usually built with approval of
the local building department. This involves a building permit
application process including such requirements as a soils report,
architectural plans and structural calculations.
Licensed professionals - soils engineer,
architect, and contractor - are involved in creating a new home project,
which is inspected by city building inspectors during the course of
construction. At the end of the project, a certificate of occupancy is
issued.
You might expect that with all this planning
and scrutiny, new homes would be perfect. But, just because a home is
new and built with permits doesn't mean that it was properly built, or
that it's free of defects. Sometimes builders make mistakes. City
inspectors aren't infallible either, and they are usually immune from
liability.
Many homes built after the Oakland Hills
firestorm in 1991 developed costly dry-rot problems within several years
after they were completed. The culprit in most cases was lack of
adequate ventilation. City building inspectors had inspected and
approved all the homes during construction.
HOUSE HUNTING TIP:
Don't assume that because a city inspector looked at the property
during construction that you don't need to have it inspected. You should
include an inspection contingency in your purchase agreement, regardless
of the home's age.
It's best to have a new home inspected by a
home inspector who has experience inspecting new homes. You may want to
have an engineer evaluate the soils report, plans and structural
calculations for you.
In addition to inspecting the structure, make
sure that you investigate the builder's reputation. You want to buy from
a builder who values his good reputation and will promptly take care of
any construction-related problems that might surface in the first year
or so of ownership.
Ask the builder for a list of homes or
developments that he has built in recent years. Visit these. How do they
look? Speak to some of the homeowners to find out how satisfied they are
with his product. Be sure to ask how the builder responded to requests
to take care of problems.
Ask the builder to give you a written
warranty, which states that he will repair construction defects that
develop within your first year or so of ownership. Some builders won't
do this. Also, the law is not always clear about what a builder's
responsibilities are to you. Consult with a knowledgeable real estate
attorney if you have any questions about a builder's responsibilities.
Older homes need updating, they often aren't
energy efficient, and they may be poorly designed. Renovating is
expensive and time-consuming. But, a benefit of buying an older home is
that it has stood the test of time.
THE CLOSING:
You should exercise diligent care in buying a new home.
Dian Hymer is author of
"House Hunting, The Take-Along Workbook for Home Buyers," and "Starting
Out, The Complete Home Buyer's Guide," Chronicle Books.
Copyright Dian Hymer
Distributed by Inman News Features
