New Home Purchase Agreement and things to check/verify/concentrate before move in

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VeeKay_IHB

New member
Thanks IHB,



This blog gave me lot of information in making decision to buy my first home.

Now I am worried about what could go wrong in the process of purchase.

There are lot of exterts here who went through this kind of experience many times.

I wish you could share your experiences and give me some suggestions to make this process go right.



Thanks,

VeeKay
 
I only have two suggestions: (1) Read and understand all your documents - preferably before signing them, and (2) hire a reputable home inspector to inspect the home <em>prior</em> to the close of escrow. You will have a walk through of the home before closing escrow to look for any problems. Your builder may (or may not) allow your inspector in on that walk though (mine didn't). If they don't, make arrangements for your inspector to have access to inspect the property. Don't close escrow until the problems identified by your inspector are fixed. Yes, the builder will tell you that you have a year of "bumper to bumper" warranty, but you will lose all your negotiating leverage once you close escrow.
 
VK



Eva's suggestions are great. But the first step is the purchase and the following areas should be understood:



1. The agent (new home sales person) represents ONLY the builder and actually discloses this in the documents. When they say let me find out for you or I will try to help you out keep in mind that you have NO REPRESENTATION.



2. The contract is totally in the favor of the builder (within DRE Statutes) and puts responsibilities on the buyer while protecting the seller.



3. Be sure to read the enite contract and if you have any questions consult a Real Estate attorney. A few hundred dollars are well worth it.



4. Remember that to you, the buyer, it is a home and most likely the largest purchase that you will make and as such is very emotional on the buyers part. To the builder it is just one of the "widgets" that needs to close in a certain period (month,quarter, year) that makes them money by either a sales commisson or part of a bonus program for the managers. Little emotion on that side of the table.



This should not scare you but make you highly aware that the deck is stacked in the builders favor. They are usually using their escrow company, lender, and sometimes an inhouse title company.



I know of what I speak as I use to be one!!!!



Enjoy!
 
My house is actually being finished right now, and yesterday I asked for a key and went in to inspect the work. (lennar home) i found that on the 2nd story, my ceiling was leaking water. I looked up by the recessed lighting and one of the lights had water all around it and it was slowly dripping onto the sub floors. I went upstairs to the master bath, and the wall adjacent to the shower was wet at the bottom. I went in to the sales office and complained and she said she'll have someone on it. Any suggestions?
 
When you sign the initial offer, make sure you add anything (like inspector access, interior changes, etc.) to the offer and that they are included as agreed upon in the final paperwork when going into escrow. I added a requirement of five gallons of all interior paint. It wasn;t that I wanted the paint, it was that I wanted to ensure that they were keeping to the contract we signed. Especially in today's market, the buyer has more control than they think.
 
Don't close until they fix everything. Lennar is not to be trusted with good fit and finish. Ignore them if they threaten you. YOU are in the driver's seat in this mkt.

You might want to hire an inspector and/or an engineer, even tho this is a new house.



This isn't a crooked cabinet, this is serious.
 
If the drywall got wet, you may have mold. I would close anyting until a complete inspection was made, especially lookingout for mold in the affected areas.
 
<p>I agree entirely with awgee. Mold is baaad. It can get is the a/c and all thru the house. </p>

<p>Mold damage is no longer covered in insurance policies, at least in wet here. in dry there, maybe it's covered. We paid a little extra for mold coverage.</p>
 
Shooby



Have Lennar repair the damage and ask to have a third party inspect and issue a letter stating that all mold damage has been remediated. The inspector will actually test the repaired drywall areas, wood, carpet ( if any) and the air inside of the home for mold spores.This should be at Lennar's expense. Water leaks over a long period of time in a closed up home can generate long term problems.



Enjoy!
 
Did they fix the problem? Was it a leak or did someone just pour water on the floor?
 
As a first home buyer I do not have any idea about home insurance.

I am getting quotes around $1000 with the following coverage.

Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability, Medical to others, .. what else should be in there?



from william lyon, we have a pre-approval for the insurance with a premium close to $700 (more or less same coverage).



What else I am missing?? how about earth quake insurance?



VeeKay
 
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