You Can’t Stop Me From Bringing My Home Inspector.
November 25, 2007
I’m working with a client to buy a new construction home from one of the big local builders. We found an inventory home with a quick close date, and got him a fabulous deal on the house since he could close by the end of the month on it.
To make sure the house is sound, I always recommend getting a home inspection, even on new construction houses. I’ve seen enough little slips on those new homes to know that having a home inspection before the final punchlist walkthrough with the builder is always a good idea.
So we called out Dave, my trusty home inspector, who went out there last week to inspect the house. The builder won’t allow us to conduct our home inspection at the walkthrough, so we had to send him out there early. I understand that - having a home inspection performed at the same time that the builder is trying to explain the house to the new homeowner would be intrusive, disruptive.
So we sent Dave out early, and are trying to arrange a meeting with Dave and my Buyer half an hour prior to the walkthrough, so that we can review, in the house, with Dave, his findings. And the builder says they won’t allow it - and they won’t allow my home inspector to be present at the walkthrough, even though the house has already been inspected.
This is what I call horsepoo.
I think my client should have whatever professional at his side that he wants when he signs off on the condition of the house with the builder. We’re not traipsing an army of people through the house. With all the Builder protection built into their contract that they force you to use when you buy from them, I think one little home inspector shouldn’t be a big deal.
Beside, I’m pretty sure they can’t stop us from standing outside the house a half hour before the walkthrough, despite their objections. It may be the sheer amount of cold medicine that I’m currently ingesting, but I’m tired of new home builders and the huge amount of stuff that they do to protect themselves at the expense of the Buyer. Even in a market where they’re cutting prices drastically, you still can only buy the houses on their terms - terms that would be unthinkable and insane if it were a resale home situation.
So Dave is coming, and we’re meeting a half hour before the walkthrough, and that’s that. My Buyer wants Dave to be there, so he’s coming. Such a simple thing causing all this fight; I’m just protecting the interests of my Buyer. Would we be arguing if he wanted to review closing documents with an attorney prior to closing? Mr. Builder, are you going to tell my Buyer that he can’t do that?
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11 Responses to “You Can’t Stop Me From Bringing My Home Inspector.”
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WOW. Would the builder prefer no buyer? To have another inventory home? The audacity of Builders is right up there with Realtors…and mortgage brokers.
Chris - the builder says their fiscal year ends at the end of November, and we wrote a contract on the house about 8 days ago, so we’re squeezing another sale into their year for them. We haven’t been hounding them for months, waiting for a house to finish, or pestering in other ways. I have a feeling they’d rather not have me at the walkthrough either. I can’t imagine doing a walkthrough by myself as a buyer - unless you’ve done it ten or twenty times, you don’t even know what you don’t know to look for!
I got a call this morning saying the builder was willing to let us meet the half hour early, but that the inspector still couldn’t attend the walkthrough. Baby steps, eh?
Kelley- Kudos to you for sticking up for your client. I’ve run into that “no inspectors at the walkthru” stipulation in the past. Personally, I just ignore it. Let them throw a fit, and then do as you see fit. Bottom line, is they want to close, and policies get thrown out the window when a closing comes in jeopardy.
Weird situation to be in. As 90% of our business is in new construction I can feel your pain. I’m sure your walk-thru will go well.
Good girl for sticking to your guns. We ALWAYS recommend that our clients have new construction inspected prior to close. Sure, we can see the builder’s cosmetic boo-boos, but the buyer is not generally inclined to navigate the crawl space or test the GFICs as a part of their walk-through. And, you are correct. Builders hate this. Caveat - If the buyer doesn’t have the luxury of a pre-closing inspection, they absolutely should have one at about month 11 so that they have a comprehensive punch list for the builder prior to the 12 month warranty expiring.
A good point, Kris. I’ll have to set reminders in my calendar to let my clients know about the 11 month opportunity.
Did you ever make scrambled eggs? That’s how the “guess idiots” at zillow.com learned how to make zestimates. The recipe appears to be screwed up and people are now crapping in their pants. Values too low, values too high, inaccurate maps, what’s next?
Yet one more reason to be sure buyers have a real estate agent in their corner when working with a builder. Buyers don’t always know that the builder isn’t looking out for THEIR best interest, just their own.
Great job standing up to the builder. That is the most ridiculous position to take from a builders perspective. It makes it look like they are hiding something. If I ever encountered this, I would stand firm on the inspector being present, unless the inspector is able to clearly explain what he found without having to show the buyers. Good luck.
Kudos to you and your client for sticking to your guns there! I’m a Washington, DC realtor here who came upon your blog by accident while searching for something else.
In the DC area, it is accepted - thank goodness - that a seller (private or builder) cannot prevent a buyer from bringing anyone they wish to their final walk-through. It is how buyers have gotten their fair shot on those rare occasions where something suspicious came up during the transaction with no formal inspection was in the contract. Just bring the inspector to final walk-through and have them check the suspicious (and undisclosed) issue out.
There is language in many new development contracts here that essentially explains the builder won’t negotiate items at final walk-through but will instead develop a punch-list of items to be resolved in a reasonable time after settlement. Also, many new development contracts have arbitration provisions for disagreements on noted items. But I don’t know of any developer who has attempted such an unreasonable stance as not allowing an inspector on-site for the final walk-through.
What I don’t understand about this situation is that they do have a buyer’s warranty anyway, correct? Wouldn’t it be better for the developer, seller, and inspector to address all the issues prior to settlement and sign off on a punch-list than have a buyer develop a warranty item list after the fact and unilaterally try to enforce a solution (with the help of an attorney) through the warranty provisions?
Seems to me having the inspector in before closing protects both the buyer and the seller, but I guess this developer doesn’t see it that way. Can’t help but make one a bit suspicious of why they are so afraid of having an inspector take a look.
Hello fellow Kelley!
Most new construction contracts that I’ve seen say the builder will create a punchlist and address the issues in a “reasonable” time, and they do have their own dispute resolution built in - not sure if it is arbitration or mediation, or if it is binding.
There is almost always a warranty, with another walkthrough with the builder in one year - but I’m with you about finding all the issues before closing. It’s so much easier all around. There’s no issues of occupancy or trouble getting onto the site, all the tradesmen are still around should you need to patch drywall or what-have-you.
What they don’t want is to have the inspection at the same time as the walkthrough, which makes sense to me. The walkthrough is not only about finding defects, but also about learning how the house works. Having it done a couple days before works just fine. Some people have the house inspected during the various construction phases as well - this particular house was already built so that wasn’t an option.
I think it’s just an attitude left over from our 2005 boom, where the builders could require just about anything, and people were tripping over themselves to get the houses. If a buyer didn’t agree to no inspection, then there were 5 people behind them who would happily waive that to get the house.