Knowing how to handle disputes with your home builder can help ensure problems don't result in costly delays.
Despite the best-laid plans, problems can inevitably happen in new construction. The wrong sink can be ordered. Your living room walls may end up being painted a different shade from the one you asked for. There are many things that can go wrong. The important thing is to ensure such situations get corrected quickly so that they don't escalate and delay the closing of your home.
Keep in contact with the builder
Throughout the building process, you should be in constant communication with your home builder. Go to the construction site if possible and see if you can walk through the house. If you notice any mistakes, contact your home builder immediately to request that they be corrected.
Work with your real estate agent
If you are working with a real estate agent, this can be an advantage in handling disputes with your home builder. Your agent is a professional who is used to negotiations and has probably dealt with new construction before. You can therefore ask your agent to call your builder on your behalf.
Hold funds in escrow
If the issue still can't be resolved after both you and your agent have had a discussion with your builder, you do have another option. The funds for the purchase of your home can be held in an escrow account until there is a satisfactory conclusion. Unfortunately, this may mean that your closing will be delayed. However, it may be well worth it to delay closing to make sure your builder gets it right.
As with any building project, the costs of building a new house can get out of hand quickly. In estimating the cost of building a new house, you should be realistic about what you want to build and where you want to build it, and whether or not you should act as general contractor or hire a contractor.
Part of the final phase of building a new home is to go over your "punch list." A punch list is a list created at the end of construction that shows what needs to still be done or what needs to be repaired on the new construction. The homebuyer and the contractor create this list.
Buying new home construction is a little different than buying a resale home. Here are three important factors to keep in mind.