Home Building in Houston has slowed along with the economy. In this buyer’s market builders are striving to compete against the many foreclosures which are for sale. To be competitive, many builders offer a dizzying array of structural upgrades and home design options that include “packages of appliances, doorknobs, and lighting fixtures.
That kind of razzle-dazzle often diverts a potential buyer’s attention from what’s really important, many construction professionals say. Following are 10 important questions to ask before, during and after construction of a new house.
1. Who is building the home?
Reviewing a builder’s qualifications requires time and detective work. Check city and county building or planning offices to review a builder’s license. Ask the company to submit qualifications, including examples of previous work and references.
Check with consumer advocacy groups and state agencies like the Texas Residential Construction Commission and attorney general’s office that track customer complaints.
Visit owners of other homes the builder has crafted to see what they think
Ask that builder for a complete list of subcontractors that will work on the home’s construction, and repeat the investigative work.
2. What does the soil’s report say?
This often-overlooked document frequently determines how – and even whether – a house is built. The report explains how soils may react when mingled with water, a mix that could cause movement that cracks walls and heaves floors.
The report also helps determine how land should be graded. Potential buyers should feel free to contact the soils engineer who conducted the test and have him or her interpret the data. The soils engineer is there to explain the risks associated with building at a particular site, not to stop someone from building. It’s up to a builder – and a potential buyer – to understand and accept those risks.
3. How is the land’s grading and drainage?
Water is the “ultimate culprit behind most substantial construction defects.” Buyers must ensure that water flows away from their house at all times. This is especially important in Houston, where flooding is common.
A lot’s drainage can be eyeballed from a neighboring yard or sidewalk. Buyers should look for water pooling near their foundation and should determine whether water flows onto their land from neighboring properties.
The general rule of thumb is to ensure that soils levels from at least 1 inch for every foot away from home’s foundation. For example, soil 6 feet away from a foundation should be 6 inches lower, essentially creating a downward slope away from the house. Builders typically construct slopes extending 6 feet away from a foundation.
4. How is surrounding land zoned for development, and what is planned for construction?
Houston is not a zoned city, but several area communities are. So if the city you want to build in is zoned, learn your boundaries, and ask to see easements that show where utility lines are buried. Inquire about master plans, which should indicate where elements of public infrastructure, such as bus stops, roads and light poles, are to be located. Master plans also indicate how surrounding land may be developed.
STREETWISE
Things to consider when shopping for a neighborhood:
- Location
- Schools ( affects resale value even for those without children)
- Security, safety and crime statistics
- Shopping
- Medical
- Recreational amenities
- Neighbors with similar interests (children)
- Green spaces, parks, nature
- Churches
- Community services
- Homeowners Association
- Taxes
- Other sales in the area
- The right home (size, price, features)
- Environmental, potential flooding, drainage
- What does the builder’s warranty for workmanship and materials guarantee?
The typical new-home warranty lasts 10 years. Builders are usually expected to correct problems with workmanship and materials for the first year, to correct defects with electrical and plumbing systems for the first two years, and to repair major structural defects during the entire length of the warranty. Buyers should also know the name of the company that backs the warranty. Is it reputable?
Warranty standards are still being set in Texas. Check with the Texas Residential Construction Commission for new building and warranty standards, expected in January.
6. How long will it take?
Construction of a two-story single-family home typically takes nine months. Builders usually try to put extra time into production schedules to ensure that they meet deadlines. A typical contact gives the company one year from the day of the contract’s approval to deliver a house.
Delays are common. Buyers should request the construction schedule in writing. Buyers also should seek a written agreement stipulating what compensation they’ll be entitled to, such as a free appliance, if delays exceed agreed-upon limits.
7. How should I communicate with the builder?
Some builders allow buyers to make unannounced visits. Others require scheduled appointments. Before signing a contract, buyers should know whom to contact.
Potential buyers should ask whether builders will allow their work to be reviewed periodically by third-party inspectors of the buyer’s choosing. It is recommended buyers strongly consider walking away if builders don’t allow third-party inspectors.
Why would you trust only the people who are doing the construction to tell you that everything is right? An inspector you hire should look at things before drywall, flooring and exterior siding are installed to cover them up.
Buyers should know how to get out of a deal they don’t like. Some contracts include out clauses allowing either the buyer or builder to end the relationship.
8. How energy-efficient is the house and what has been done to improve its air quality?
A home’s energy efficiency is perhaps its greatest feature. The energy star means that a home is 30 percent more efficient than home built to 1993 model standards, or 15 percent more efficient than a state’s energy code, whichever is more rigorous.
According to Energy Star’s Web site, energy savings are typically achieved through a combination of high-grade exterior siding, windows, heating and air-conditioning systems, tight duct systems, water-heating equipment and controlled air filtration.
Buyers should pay attention to their homes furnace during construction. Builders should insert filters into furnaces immediately after installation because construction dust can shave years off vital parts that make the furnace work. Buyers should insist that builders thoroughly clean a furnace after construction is complete, which is not a standard practice of the construction industry.
- What can inflate the initial cost agreed upon?
Upgrades and “change-orders” can send home prices soaring. Many buyers blow their budget because of poor communication.
People need to understand what standard finishes will be in the house so that they can plan accordingly. Last minute changes can be very expensive because of the law of unintended consequences. For example, a late change from carpet to hardwood flooring may mean windowsills and staircases have to be adjusted to meet city codes. Builders typically have deadlines by which buyers must request structural changes. Buyers should seek written confirmation of every up-grade or change-order requested.
Saying once that you want something done is not enough to make it happen.
10. Will there be builder support after move-in day?
Many builders offer after-hours contact information for significant repairs and make scheduled, follow-up visits within the first year of a homes occupancy. The good news to all of this is that there are a lot of ways buyers can protect themselves. But the bad news is that everything boils down to” Buyer beware.”
Call Bill Edge at 713-240-2949 to see Houston Homes in 24 hours or less.
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