Home Builders – Avoid Construction Defects With the New Construction of Your Home

After purchasing your home builder’s model home, the new construction phase is exciting and filled with anticipation. You’ve signed the contract and construction is about to start. What do you do? You need to make sure that your home is built correct.

What is correct?

The first thing that commonly comes to mind is the home being built to ‘Code.’ In a general sense, the code issue is reviewed by the governing municipality. Commonly they have inspectors that look for your house to be built to code.

By the way, the ‘Code’ is only the MINIMUM set of standards. Kind of scary to realize that your new home is only being inspected to a minimum set of standards. You would have a fit if your children were taught to a minimum set of standards. The bar is not being set too high here.

The most important factor when your new home builder or general contractor starts construction of your model home is having a game plan. Ask your self these questions: Do I understand the new home building process? No, truly ask yourself! Do I REALLY understand the new home building process? Can I tell if my new home is being built to today’s standards?

If your answer is not a definitive yes; you should consider choosing between one of the following options.

Home inspector or not
One solution is to hire a home inspector with experience reviewing the new construction home building process of your new home. This type of inspection process is not the same creature that you may have experienced when purchasing an existing home. Fees for this type of service will be at least $500. Multiple visits along with fully documented reports at specific milestones during construction process are necessary. The trick here is to make sure that your inspector understands the finer elements of the new construction process.

There are three likely pit falls with the home inspector route. First, in an effort to prove his worth, the report is filled with issues that don’t matter much. The concern here is provoking and creating an adversarial relationship with your new home builder or construction company. Second, issues which are truly important in the construction and ultimately performance of your house are missed in the process. The third and final area of concern lies with accountability. Home inspectors do not guarantee or provide a warranty for the accuracy of their services.

Is there another way?

There sure is; just to do it yourself. I know what you’re thinking. Hold on there partner, don’t you remember the questions asked at the top? Of course I do. This is where with a little help, you can take the bull by the horns and make sure the work is completed correctly yourself. It is possible for you to manage this task.

What if you had a step by step process? What about a process that not only tells you what to look for, but when to look for it? And, how about a process that even provides photographs as examples of what to look for. With all of that, I’m confident that you’ll have the skills necessary to make sure your new home is built to today’s standards.

New Construction Interest Rates Hit Record Lows

Since the housing bubble burst a few years back, new construction has slowed significantly. While this does not bode particularly well for construction companies, it actually has provided the opportunity for consumers to benefit from some excellent bargains. Using the down market to your advantage as a real estate investor or homebuyer is easier than it may seem. By keeping your eyes out for deals and knowing quality when you see it, you could actually make very smart investments in the under-valued market.

In order to stimulate the economy, the Federal Reserve has placed interest rates at record low levels. This means that it is possible to secure record-breakingly low priced loans for a variety of consumer goods, including new construction loans. To build a new home, you do not purchase a traditional mortgage. First, you receive a construction loan. These loans are traditionally doled out in sections that correspond directly to the progress of your build. That way, if something goes awry during the building process, you won’t be stuck with thousands of dollars that you cannot yet afford to spend. Once the construction has been completed, then the bank uses a mortgage to pay back the construction loan.

Saving money on interest rates will make both the construction loan and the mortgage you purchase to pay back that loan less expensive. Because the housing market is in a downswing, there are real opportunities to capitalize. In order to make a smart investment, though, you need to do your market research. As you have probably heard by now, when it comes to real estate, the three most important things to consider are location, location, and location. There is no magic formula that can guarantee that you will make money on a particular investment, but there are certain clues that you can rely on to help you gauge a certain area.

Take a close look at transportation options in the location you are looking for, and find out if the city or state you live in has any future transportation plans for that location. Look at past real estate transactions near the spot you’re considering to get a sense of the market over the past 5 years. Talk to neighbors or local business owners if you’re brand new to the area to get a sense of how a particular location has changed over the years. By taking these steps, you can get a sense of any changes to the neighborhood or county and make a smart investment decision for you and your family.

By selecting a lower priced area that seems to be developing and taking advantage of the super low interest rates that are currently available to the public, you could make a very smart real estate decision. Of course, there are always risks involved with new construction and it is vital that you’re prepared for this so that you don’t end up in a difficult financial situation. Check out new construction options in your area today!

Why Should You Buy New Construction?

If you are planning to move to a new house or to a new office, consider choosing a new construction instead of buying an existing one. Buying a new construction in can be an expensive affair but you won’t regret it. When you choose a pre-owned home, you may have to accept it the way it is but when you choose to get a new construction then you have the choice to get it designed as per your requirements. Everything is new and you can choose the colors and patterns you like. Here are some other advantages of buying a newly built home.

When you are building your own house then you can get it designed just like the way you want. If you have ever dreamt of a special design for your kitchen or wished for a patio overlooking your garden then you can easily get it in a newly constructed house. You can explain your ideas to the architect who would then turn your dreams into reality and ensure that it is practical as well.

Whether you need a fireplace, an open kitchen or a Victorian style bedroom, you can get them all. You can make sure that they are well insulated and the plumbing system works efficiently as well. If you want to make your house more environment-friendly then you can choose the doors and windows accordingly as well. You can also get French windows or sliding door and leave space for it.

As opposed to this, when you buy a pre-owned house, you might have to accept whatever is being offered. Making changes to the existing structure would mean more expenses. Then you may have to deal with leaking pipes, peeling paint and faulty electrical wiring. With old constructions you may have to deal with a lot of repair work and you can never be sure how strong the structure is.

If you have considered your options and have decided to build your own house then you need to make sure that you choose a good company. You can look for a construction company that deals in residential construction. A well reputed company generally has a good team of experts who can provide with all the services related to constructions and remodeling. They have architects who can help you to design the house better.

The company also provides you with plumbers, electricians and other professionals who make things more convenient and efficient for you. This means that you don’t have to run to different professionals and hire them to work for you. It saves your time and effort. When these professional are from the same company then they are able to work together and can help you to get your dream house. The company that provides with new construction services can provide with repair services as well. So if you need to add a new room or repair your house then you can contact them.

New Construction Progress Inspections

Having a new customized home built can be an exciting experience. Getting through the process however can be a long and at times difficult ordeal. People having a new home built often rely solely on their builder to help guide them through the construction. Unfortunately he may not be the best person to advise them on their project.

Consider the following:

Home builders and many contractors involved in home construction are not licensed professionals
No license means no mandated formal training or apprenticeship, no continuing education, and minimal accountability

City building inspectors check for code compliance, not quality

Codes do not cover all aspects of the building process

These are facts that the majority of people building new homes or for that matter having work done on their existing home, do not know. But who can a new construction home buyer find who will objectively and competently oversee an entire building project and provide knowledgeable, unbiased information on construction techniques and materials? An independent, licensed, professional home inspector.

Most often home inspectors are called in after the new home owner has been experiencing problems with the house, often for many months or even years after it was built. What new construction home buyers almost never consider is hiring the inspector while the house is being built.

When problems do occur and the homeowner is asked about new construction inspections some reasons heard for not enlisting the help of an independent home inspector are:

The local building official is inspecting the home

As previously stated these inspectors look for code compliance, not quality. They are in the home only briefly during different phases of the construction. Do they miss things? Yes they do and no they are not usually held accountable for their mistakes. Also they are municipal employees and are not directly responsible to the persons buying the home. In other words they won’t contact the buyer if there are problems. They simply instruct the builder to correct the issues and move on to the next home.

Cost

It’s always about the money and for good reason. Costs can escalate quickly when building a new home. Buyers often want upgrades and these push up costs. So hiring an independent inspector can be an expense that is hard to justify. After all they believe the city building official is inspecting the home.

The builder has a good reputation

He may, but how do you know. Many people do not research the builder before signing on with them to build their home. This may be even truer when purchasing the home through a third party such as Realtor. Get references and check them before signing a contract.

It is also important to understand specifically what the builders’ job is. He generally is the person who manages the entire construction process. He must hire and coordinate many sub-contractors to install the vast amount of components that make up a house. This can be an overwhelming task for just one home, but if he is building several homes at once it can be nearly impossible to effectively manage.

It’s a new house; there should be nothing wrong (Very likely the biggest misconception related to new homes)

If you have ever bought an item, taken it home and it broke the first time you used it then the absurdness of this statement should be glaringly apparent. But never the less many people who have a home built believe because it is new and there is a one year builders warranty there will be no problems.

A house is a complex structure containing many different systems that must all function correctly and in harmony. It is built over the course of several months by many different people. Assuredly there are going to be problems and most often they are minor or cosmetic. But there are those occasional big problems that can make the home barely habitable or in extreme cases uninhabitable.

Was not aware that an outside inspector could be hired

When paying hundreds of thousands of dollars to have a home built, you are certainly entitled to have whom every you choose oversee the process. If you meet resistance to bringing in an outside inspector, this should be a red flag that something could potentially be wrong.

But why is it important to hire an independent inspector to look after the project?

Very simply quality control. If the construction company in charge of building your home knows that the customer has hired an independent, knowledgeable inspector to oversee the build, they are very likely to be more diligent in their quality of work. The psychological effect can be just as influential as the actual physical inspections.

Home inspectors and home builders encompass similar knowledge of home construction. However home inspectors are formally trained individuals who are licensed and consequently must also attend a specific amount of continuing education for license renewal. Home builders are not licensed, only registered, and therefore are not required to be formally trained or attend continuing education. They must only pay a yearly fee to remain registered and in business.

This is also true of the majority of contractors who perform work on a new or existing home. The term Home Improvement Contractor is a catch all category for companies that do any type of improvement work on homes. For example carpenters who frame the home fall into this category, as do roofers, foundation contractors, sheet rockers, flooring installers and many other individual companies that are part of putting a house together.

Another important aspect of the home inspectors experience is they view all types and ages of homes. They see the results of poor construction practices and understand better than anyone the consequences of inferior workmanship. It’s an important and unique perspective that no other profession can claim.

Finally a hired independent home inspector works for and reports directly to you. He is your advocate and can be an invaluable asset during the building of your new home.

Before you buy a new home consumer groups advise protecting your rights by taking these steps:
Research your builder thoroughly before signing any agreements.

Consider hiring a real estate lawyer to negotiate your contract. There is no better time to negotiate than before you buy.

To protect your right to sue, strike any requirement that disputes will go to binding arbitration.

Ask for the names of subcontractors building your home. Investigate their work before you buy.

Hire a professional inspector to examine your home during construction. Point out flaws that can be fixed before you move in.

Discuss your warranty thoroughly with the builder. Put everything in writing.

Leave a paper trail. Send all correspondence to the builder by certified mail, return receipt requested.

James Quarello, the founder of JRV Home Inspection Services, brings to the company an over 20 year background in industrial equipment installation engineering and home remodeling. Mr. Quarello is a graduate of The Home Inspection Institute of Americas’ intensive Connecticut certified HI-100 Home Inspector training program. He is also a graduate of Inspection Training Associates (ITA) New Construction inspection program and has passed the National Home Inspectors Exam (NHIE).

Buying New Construction? Don’t Let Those Builders Push You Around!

From the concrete streets of metropolitan cities to the sprawling suburbs in most areas around the country, new construction is present in the form of townhouses, condominiums, single homes and the ever-so-popular “over-55 communities.”

While many of these properties are esthetically impressive complete with over-sized family rooms, open kitchen areas, and every upgrade/option imaginable, there are also the unfortunate, yet inevitable pitfalls associated with new construction such as delayed completion dates, cost overruns and building defects. With respect to the latter, buyers of new construction should be informed of their legal rights in the event that construction defects impede their use and enjoyment of the property.

Traditionally, a vendor of property is responsible for the quality of the property sold only to the extent that the vendor expressly agrees to be responsible. In years past, the notion was that a seller and buyer dealt with one another at “arm’s length” and, therefore the buyer should only be afforded the specific protection for which he/she contracts. However, in the context of new construction, the laws started to change over the past few decades. In states such as the Commonwealth of Pennsylvania, a well-established body of case law has evolved that has afforded protection to buyers in the form of implied warranties.

The “implied warranty of habitability” and “implied warranty of reasonable construction” exist between a builder-vendor of new construction and a buyer regardless of whether any mention of such warranties is actually written into the contract of sale (those huge 25-plus page contracts that builders make you sign!). These warranties, which automatically exist between builder-vendors and buyers, represent that the property is suitable for living and is constructed with a reasonable level of skill and workmanship. Further, these warranties apply whether the buyer purchases the new home prior to, during or after completion of construction.

So, what does this mean for those of you who are about to purchase a plush, new townhouse on a golf course? It means that you may have legal recourse in the event that the builder has improperly constructed your home and/or constructed the home with defects that make the property unfit for living. Some examples of defects that could trigger these warranties and potentially provide you with a cause of action against the builder-vendor include: severe water leakage leading to mold growth, faulty plumbing, contaminated water supply, improper foundation and faulty landfill/site development.

Even though the courts in Pennsylvania (and some other states) have consistently found that these implied warranties afford buyers of new construction protection from faulty workmanship, BEWARE…a builder-vendor could attempt to disclaim such warranties in the contract of sale. The Pennsylvania courts have ruled that a builder-vendor CAN disclaim these implied warranties but the disclaimer language must be clear, unambiguous and set forth in the contract. This means that the builder-vendor will not get away with burying the disclaimer somewhere in that bible-sized contract of sale. However, if the disclaimer language is clear, easy to find in the contract, and easy to understand, then there is a good chance that a court would uphold the disclaimer. Under that circumstance, it would be unlikely that you would prevail in asserting a claim that the builder breached one or both of these warranties. For this very reason, it is your absolute responsibility to thoroughly read your contract of sale (or at least hire a highly skilled real estate attorney to read through it for you!!). The last thing that a judge wants to hear is that you didn’t realize the builder-vendor disclaimed the implied warranties because you failed to read your contract of sale.

So, here is a little recap:

1. Builders of new construction have an obligation to make sure the property is built in a reasonable, workmanlike manner and fit for living.

2. The implied warranties of habitability and reasonable construction protect buyers regardless of the warranty provisions in the contract of sale.

3. A builder can disclaim these warranties by using clear, unambiguous language in the contract.

4. All buyers should thoroughly read through the contract of sale.

5. If your new home has significant defects and is unfit for you to live in, then you should consult an attorney to see if you have valid claims against the builder.

Home Improvement Loans Turn Your Home Into A Paradise

Home is the place where most of our time is spent. It’s the place where we feel most secure. It’s like the fortress which saves us from all the possible troubles that we can have.

These are a few reasons why our home should be at its absolute best. Things which can make it that can be minor or major.

If that is the case with you but you do not have sufficient funds with you to afford home improvement then home improvement loans are tailor made for you.

Home improvement loans are loans which are specifically designed for people who want to make changes to their home but they can not because of their financial standing.

A person may require a home improvement loan to make major or minor changes to their home which may be one of the following.

o Construction of the house

o Adding of a bedroom, kitchen

o Restructuring

o Landscaping the garden

o Adding to the safety of the house

o Electrical and plumbing work

o Renovation

o New furniture

Any work or changes that we make to our home is good for ourselves only as the owners will eventually benefit from the changes that take place in the home.

Benefits of going for home improvement

By going for home improvement we will raise the value of the house which will help us in negotiating a better deal if we want to sell the house.
Home improvement is better than moving to a new home both in financial and emotional terms.
Home improvement provides a lot more satisfaction to the owner of the home.

There are two ways of going for the home improvement loans

Secured home improvement loans is a way where by a borrower will have to provide collateral as a security to the lender which may be any of his assets. Such as borrowers car or his machinery. However if the borrower provides his home as a security this method of home improvement will be known as home equity method of borrowing home improvement loan. By this method we can get loans up to 125% of the property value.

Another method of borrowing home improvement loans is through unsecured means where the borrower does not have to provide any collateral to the lender as an obligation. However the borrower may have to pay a higher rate of interest to cover for the risk factor of the lender.

Home improvement can be required by any body therefore these loans are available to everyone even to people with bad credit. People who have faltered with their payments in the past such as CCJ’s, People in arrears or people who have filled for bankruptcy. Bad credit is determined on the basis of a credit score which is a three digit rating which tells the lenders about the financial credit worthiness of the borrower. A credit score of below 600 usually leads to bad credit.

For applying for home improvement loans all people need is to go online and fill in their personal and loan details form after that the loan decision will be made by the lenders in a day or two.

Benefits of taking home improvement loan through online lenders

o Fast approval of loans

o There are a vast majority of creditors so you can choose your alternatives

o You can apply even if you have bad credit history

o You can borrow up to £75000.

o You can avail a few tax benefits as well.

o With so many creditors you always get the best deal which includes low interest rates and easy repayment schedule.

o While online you can use other services available online like debt calculator, loan calculator etc.

o If you are not sure about anything you can also interact with our experts and discuss your problems.

Home is the place many people worship because for them it is a place where their god is. Therefore we should always keep it as it should be as a temple. “Home sweet home” is how the phrase is and if we keep making the efforts for that then it will keep our life sweet as well.

Fancy A Dream Home Get A Home Improvement Loan

Guess where most people spend their time well it’s their home. No wonder that people would like it to be perfect. So would most of the people as well. A perfect home depends on how an individual wants it to be. Perfection varies from individual to the other.

Most people love their home that’s why it should be perfect in fact it should be reflection of perfection. If you love your home as well than it should be as you want it to be not as it is. If that is the case with you and you want your home to be your paradise but you cannot afford it then a home improvement loan can help you in your quest.

A home improvement loan is basically a loan offered to people who want to make major or minor changes to their home. The changes can be major or minor. Examples of the changes are

o Adding or renovations of new rooms

o Central heating

o Landscaping

o Adding of luxuries like fireplaces or swimming pool

o Plumbing roofing or safety repairs

It could be a minor change or a major change which can completely turn around your home. A home improvement loan offers you an opportunity to make that improvement to turn your home into a dream home.

There are various ways by which an individual can go for a home improvement loan.

Secured home improvement loan in this loan the borrower provides a security to the borrower. The security could be any thing either a car or any other asset of the borrower.

Home equity is another type of secured home improvement loan where the security provided by the borrower can be only his home for which the loan has been taken.

Home improvement is basically an equity loan where the security is essential for the borrowing of the loan. However if the loan amount is under £10000 then an unsecured home improvement loan can be borrowed. An unsecured home improvement loan does not require the borrower to provide any kind of collateral to lender. These loans therefore carry a little higher rate of interest (about 1% – 2%) then the secured loans. This is the result of lender covering up for his risk factor. The usual interest rate is around 11.4% (variable)

Everyone in this world has home even people with bad credit history,
People like, CCJ’s, defaults, arrears, late payments or people who have previously filled for bankruptcy. A credit score is given to all UK people who have previously taken loans. A score of below 600 is the one which causes the bad credit history. A home improvement loan is now available to these people as well.

Applying for loans is easy all the people who want to get the home improvement loan need to do is go online and fill in their requirements after they have found themselves a lender. If approved they will get the loan very quickly.

There are other benefits of home improvement as well which many people do not know about.

o If you go for home improvement it increases the value of the home which helps the owners when the owner wants to sell the house. It often helps in getting a better deal for the home as a furnished home would fetch a better price then an unfurnished one.

o For most people pride is the most important thing and a dream home would be the thing that provides that pride.

o For people with bad credit history it is an opportunity to improve their credit score if they follow the repayment plan as it should be

A home can be the best place to be once you come from your work if it is properly maintained. A poorly maintained house is no good to anybody so a home improvement is an absolute necessity. A home improvement loan is designed for people who are not financially capable of going for home improvement with several benefits by keeping the borrowers financial capabilities in mind.

Tips for Home Improvement Home Equity Loan Financing

No one will argue that increasing the value of your home through home improvement projects
is a great idea. However, large home improvement projects can become quite expensive. Home
improvements lighten your wallet and empty your savings account. Careful planning and
thinking about all your financing options is necessary before beginning your home
improvement project. Below are a few tips for home improvement home equity loan financing to
take into consideration.

Home improvement home equity loans are becoming one of the most popular loans when it comes
to home improvement. Because the interest is deductible from your taxes, It’s a viable tool
for borrowing money. Interest rates on home improvement home equity loans are usually lower
than the interest rates of other types of loans. Another good thing about home improvement
home equity loans is that they are fairly easy to get.

Home improvement home equity loans are great loans for home improvement because the project
can greatly increase the appraisal value of your home. This is a loan that is obtained to be
able to get additional investments for use in the future. Home improvement projects such as
bathroom additions, bedrooms and home extensions can increase the value of a house. However,
some home improvement projects don’t really result in increasing the value of the house. The
construction of a swimming pool is one such project.

Take care when getting a home improvement home equity loan. Don’t forget that the collateral
that you are putting up against the loan is your own house. If you can’t make the payments
and make them on time, you could end up losing your home. You borrowed money for the sole
purpose of improving your house and losing your house would be a disastrous situation
indeed.

Many people use home improvement home equity loans for other reasons. The money is sometimes
spent finance other expenses such as vacations or everyday needs. Steady appreciation of
their houses is what people rely on to be able to pay for the debt. If the value of their
house depreciates at the end of any period, they are in huge financial hot water. This is
why home improvement home equity loans should be used for the improvement of your home
because the risks of depreciation are lower.

To avoid being indebted because of home improvement projects, these tips for home
improvement home equity loan financing should be kept in mind. Home improvements are a great
way to increase the value of your house but always use your head when getting home
improvement home equity loans to finance these projects.