By Katherine Salant
Every buyer of a new house wants their story to end with, "they moved in and lived happily ever after." Unfortunately, not every new home project ends on such a high note, and the plot line can read more like a cautionary tale - "if only the buyers had done this or done that, all would have ended well." Here are six such subplots - don't let them be part of your home building story.
1. The buyers didn't spend enough time figuring out what they wanted. Nothing is worse than walking through a nearly completed house and realizing that it isn't what you wanted. The only way to avoid such a heartbreaking scenario is to figure out what you want before you sign the contract and start construction. The dissatisfaction is rarely a big picture issue such as the bedroom count or the office space you need because you've decide to establish a home-based business.
The problem is the little things. Every house is the sum of a thousand details. To get exactly what you want in your new house you need to be attuned to the needs of daily life as well as the bedroom count. Go through every room in your current house and note the pluses and minuses. For example, if your house is 40 to 50 years old and has never been remodeled, storage is likely to be a big issue and a big minus. The single bathroom shared by all the bedrooms will predate bulk purchasing of toilet paper, an extensive collection of body and hair-care products and a blow dryer, so you're already at your wits end trying to store these things. If you have athletes in your house, you may have sports equipment constantly underfoot and want a place to keep those as well.
As you assess where you live now, start a "must-have," "would-like,"and "marginal" list to help you prioritize the features you would like to have in your new house. The list will change and your priorities will fluctuate as you start to visit models and see the possibilities. Eventually, you'll have to make some agonizing choices - no one, not even Bill Gates, can afford everything. While you go back and forth, some of the choices may be pricey finishes or more space, get it now or add it later. As a general rule, changing the finishes a few years hence is easily done, but adding on space such as a "morning room" (a larger breakfast room that can be a great place for kids to do homework while one parent fixes dinner) will be more costly and much more disruptive because you will be living in the house while the work is going on.
2. The buyers didn't choose a builder with enough care. You may be agonizing over those countertops, but choosing your builder is the single most important decision you will make in your new home project. A great design, fabulous views and exquisite materials can never compensate for poor workmanship, mushrooms on the windowsill or a leaky roof.
When you've nailed down your price range, location and floor plan, and narrowed your list to one or two builders, check out their bona fides and don't get seduced by price. You want the best house you can afford, not the cheapest one or the biggest one for the money. The first question to ask: How long have you been in business? Developing the requisite expertise, skin as thick as an elephant's hide, and the ability to act with grace under pressure generally takes about three years, but five will produce a more seasoned builder. Many homebuilders started out as carpenters and site superintendents, but the managerial and business skills are equally important and these don't come overnight. The second question: How long has the firm has been building in your market? Delivering a house on time and on budget requires a reliable network of material suppliers and subcontractors, and this takes about two years to establish. This holds true whether the firm is based in your area or is established somewhere else and just entering your market.
If you are considering a national builder, you'll need to check the track record of that firm in your market, even if it has been building there for several years. The national firms are comprised of semi-autonomous divisions and quality can vary. Your aunt may have gotten a great house in Des Moines, but the firm may not be doing so well in Hilton Head, South Carolina, where you want to build.
Next, get feedback from some of the builders' recent customers by spending several weekend afternoons talking with people already living in the communities you are considering. Ask them about their experiences, both during construction and after they moved in. Every new house will have things that require adjustment, and you don't want your first year in yours to be marred by irritating noises or a shower door that won't stay shut. If you want to be really thorough, visit several communities built by the same builder that are several years old and talk with the residents there.
The other group a builder must please are his subcontractors, so ask for a list of the main ones from firms that you are considering - the framer/carpenter, the electrician, lumber supplier, plumber, electrician, and the heating and air conditioning specialist - and contact them. Ask each one if he's satisfied with the builder's payment performance and how long they've worked together. If the builder and subcontractor have a long history, that's a good sign. Not only does it attest to the builder's reliability, it also speaks to the quality of his houses - no builder has a long-term relationship with a sub that does bad work. Conversely, if the builders' relationship with his subs and suppliers are all short term, it may indicate that he's money driven, not quality or consumer-driven.
3. The buyers did not read the sales contract and have it vetted by a real estate attorney. Many misunderstandings between purchasers and builders arise because the buyers didn't read the sales contract and understand its terms. Careful study of the model is not sufficient because the only thing binding the builder is the terms written in the contract, which often affords him enormous latitude. For example, "the house will be substantially similar to the model" means that the doors, windows and even walls can be in a different location than in the model or shown in the sales brochures.
4. The buyers didn't get all the promises of the sales agent and builder in writing. If the promises are not written down in a contract addendum, the builder is not obliged to deliver.
5. The buyers didn't hire a home inspector until construction of the house was already completed. Hiring an inspector at the end of the project is not in itself a bad idea since you are unlikely to crawl around the roof and discover there's no chimney flashing. But other problems, such as a foundation issue, are more likely to be resolved to everyone's satisfaction if they are discovered at the time and relatively little has to be ripped out to make the necessary repair. To get the maximum benefit of a home inspector, hire one before construction starts so that he can check in at important points along the way.
6. The buyers didn't stick around during construction. Once you choose a builder, sign the contract and are ready to break ground, don't expect to take off for a six-month cruise, returning just in time to move in. The unexpected will happen more than once, and you need to be available. You may also find that once your house goes up and you can see it in three dimensions you want to make a change, and you can't make those kinds of decisions by e-mail or over a cell phone.
. Questions of a Do It Yourself nature should be submitted to our "