Dog Eat Dog Market

Crazy times here in the Central Texas new home market. In my last blog (sorry, condensate lines will have to wait!), I spoke of the option period/home inspection getting waved in the resale market. Similarly, it can be tough in the new construction market as these folks can attest to. I would recommend clicking that last link & reading the article. There is no recourse in Texas right now for a new home buyer if things go sideways with the builder. There are laws on the books where a home owner could take a builder to court; but the home basically has to be a structural hazard & litigation etc. could take a long time.

We had one client that had a contract cancelled. I did the final walk & found quite a few items that needed attention before closing. The builder obliged the buyer & said they would take care of the items. Our client smartly scheduled a re-inspection for follow up to ensure what was required to be repaired was done & done right. The re-inspection revealed an incomplete punch list & conflicting stories from the construction manager. He said he never got the report & yet there were things fixed (and being fixed during the re-inspection) from the original report. Long story short, the builder reneged on the deal & our client was literally left out in the cold as her lease was up & she had no where to go. But like the builder from the linked story, they know there are hundreds of people waiting in line & will get it sold quickly- and at a higher sales price to boot!

Another client postponed his final walk inspection until after they moved in. The builder refused to move the closing date & the buyer felt is was futile to have an inspection since so many items were not going to be completed until after close (including no appliances, no gas service - which meant no heat, no stove & no hot water). So the home wasn’t habitable. The buyers were afraid of making too many waves & having the whole deal capsize. I felt bad as they were a young family with small children. Do you want to know why some builders are doing this? Because they can! But who needs the extra anxiety? There’s enough already!

By now you’re probably thinking; why should I even bother then? Here’s why: I would still strongly encourage you to have those new construction inspections all through the construction process (pre-pour, pre-drywall & final). At best, your builder will be more than happy to address the findings in your inspection report & more. At worst, even if you don’t want to confront your builder, you’ll have a comprehensive report. If any failures occur related to deficiencies that were uncovered during any of the inspections, you’ll have legal documentation from a qualified & licensed professional to pursue any recourse against the builder if you so choose. Sometimes a “you’ll be hearing from my attorney” can be a great motivator.

I will get to the correct/best practice methods of setting up the condensate drain system for the AC system in my next post (I promise!). Poor set ups can lead to mold issues - and that’s not good.