Buying or building a new home should be an enjoyable experience. Sadly, for most consumers, it’s a nightmare that will stay with them the rest of their life. A common statement made by many new homebuyers is that they will never have another home built for them.
Here’s 4 things your builder will probably never tell you when you are buying a flat or home.
- “We market that our company only uses the finest craftsmen to build our homes when in reality, we use the cheapest trades we can find, which means that many are not skilled and are day laborers.”
- “I have a binding contract that will prevent you from suing me should you have major defects in your home after you move in. And better yet, there is little you can do to get me to fix it!”
Read the fine print on your contract. Better yet, have a real estate attorney read it for you and explain to you what legal recourse you have should there be problems after you close. I bet you’ll come out of the attorney’s office amazed at how little rights you have if you sign the builders contract.
3. “Your home is built over a landfill or swamp… maybe both.”
As prime land is filling up with new homes, real estate developers and builders are turning to sub prime land. Here in my market, we have subdivisions sitting on landfills, swamps and former rice patties. None are prime areas for building a home on.
4. “If you back out of the contract for any reason, we’ll keep your earnest money an upgrade money”
Many people are surprised to find this is true. Again, the builder or sales people may tell you different, but most contracts have a clause that says you’ll forfeit your earnest money or upgrade money if you back out of the home. Get it in writing what happens if you back out and the steps you must take to get your money back. Don’t think it won’t happen to you because I see it happen all the time.
So, take care of the things mentioned above before buying your dream home. And if you want to add more, please let me know in the comment.