Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Beware when buying new construction
Old 05-13-2009, 07:44 PM   #1
Recycles dryer sheets
 
Join Date: Oct 2008
Posts: 217
Beware when buying new construction

Wife is a realestate agent here in PA. What she tells me at this time
is if you buy new construction you cannot get mechanics lien insurance
from the title company. The insurance companies are not issuing the coverage, due to builders going under. This may be going on in other
states, dont know. But what is happening, wife knows of several cases where the people settled on the house, the next thing you know is that
they get a letter with a lien on the house from some unpaid mechanic.
Not the mechanics fault the builders are not paying them.
Just thought I would pass this along, just in case you know anyone who
intends buy new construction, watch out.
Old Mike
__________________

__________________
mf15 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-13-2009, 11:17 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,913
There are time frames for filing a mechanic's lien. This is a time to have a LOCAL real estate lawyer on your team. That attorney should know who the usual and customary materials providers are in your area, the scuttlebut in the community about the builder. Go down to the building department and look through the permit file. BTW, passing an inspection does not mean that the work was done well.

There are other reasons, IMHO, not to buy new construction. The quality of the work is uncertian and a builder's 'warantee' is worth zilch if the builder is out of business or the house lender owned.
__________________

__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 05-14-2009, 08:21 AM   #3
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 242
Quote:
Originally Posted by Brat View Post
There are other reasons, IMHO, not to buy new construction. The quality of the work is uncertian and a builder's 'warantee' is worth zilch if the builder is out of business or the house lender owned.
Last week I read an article somewhere about Chinese drywall being used in new $500K condos in Florida - they were a few cents cheaper per panel. Now, some units are uninhabitable because there is a sulfur smell coming out of them and they wreck all metals nearby (wiring, jewelry, silverware).

I knew a RE agent who told me "I would never buy a new condo". Now I'm beginning to see why.
__________________
Sparky is offline   Reply With Quote
Old 05-14-2009, 11:06 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,913
Add to that list condos in converted buildings. I would wait until a building is 10 years old, that is when construction defects are usually known.

Husband and I have finally made the emotional committment to sell our home and move close to grandchildren. There are exactly two buildings with units that I would consider. One was built in the late 50's (and the entry looks it) BUT it is very well maintained because it's board has a long term view of maintance and enforces their covanants - one local calls it "Mother may I" (but her building doesn't to that and has issues). The other was built in the 70s and has historically commanded a premium sales price, hence higher property taxes. When I push the numbers the oldest building looks looks like the smart move.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 05-14-2009, 11:20 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Oct 2008
Location: Naples
Posts: 2,161
Quote:
Originally Posted by Sparky View Post
Last week I read an article somewhere about Chinese drywall being used in new $500K condos in Florida - they were a few cents cheaper per panel. Now, some units are uninhabitable because there is a sulfur smell coming out of them and they wreck all metals nearby (wiring, jewelry, silverware).

I knew a RE agent who told me "I would never buy a new condo". Now I'm beginning to see why.
The drywall from China was used during the construction boom a couple years. The drywall was made using formaldehyde as I understand. It is giving off odor making the structure uninhabitibal. Not only that but apparently it is causing copper piping and wiring to detiorate. I forget the builders involved in this but there is a law suit filed in Tampa that is coming before the bench shortly. Last I heard was that one builder is gutting their houses and rebuilding the interiors. Don't know where all this will lead but its a real fiasco.
__________________
JOHNNIE36 is offline   Reply With Quote
Old 05-14-2009, 02:35 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Quote:
Originally Posted by mf15 View Post
Just thought I would pass this along, just in case you know anyone who
intends buy new construction, watch out.
Old Mike
Thanks for the advice!
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 05-14-2009, 04:20 PM   #7
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 242
Quote:
Originally Posted by Brat View Post
Husband and I have finally made the emotional committment to sell our home and move close to grandchildren. There are exactly two buildings with units that I would consider. One was built in the late 50's (and the entry looks it) BUT it is very well maintained because it's board has a long term view of maintance and enforces their covanants - one local calls it "Mother may I" (but her building doesn't to that and has issues). The other was built in the 70s and has historically commanded a premium sales price, hence higher property taxes. When I push the numbers the oldest building looks looks like the smart move.
Problem with older buildings is expectation of a special assessment - ones around me range from about $7K to $40K PER UNIT.

IMO, there are a lot of thorny issues with condos, such as, is property management licensed with the state, does the BOD have free and fair elections, is there an audit done of the books once every 2 years that is made public. I would also recommend buying in a complex with at least 100 units, that is, so competent members of the board may rise to the top and, if there is a special assessment needed (for roofs or whatever), the cost can be split among many owners.

I would also buy a condo that is the same price or more than a single family home in the same area - folks are there because they want to be, not because they can't afford anything else (and then they're angry and noisy).

I love living in my condo, have a nice social life (happy hour!) and would recommend asking these kinds of questions.
__________________
Sparky is offline   Reply With Quote
Old 05-14-2009, 04:24 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,380
Quote:
Originally Posted by Brat View Post
Add to that list condos in converted buildings. I would wait until a building is 10 years old, that is when construction defects are usually known.

Husband and I have finally made the emotional committment to sell our home and move close to grandchildren. There are exactly two buildings with units that I would consider. One was built in the late 50's (and the entry looks it) BUT it is very well maintained because it's board has a long term view of maintance and enforces their covanants - one local calls it "Mother may I" (but her building doesn't to that and has issues). The other was built in the 70s and has historically commanded a premium sales price, hence higher property taxes. When I push the numbers the oldest building looks looks like the smart move.
How do you feel about wiring, plumbing and insulation in these older buildings? How about asbestos?

I like older building esthetically, but I wonder about all the above issues.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 05-14-2009, 04:41 PM   #9
Full time employment: Posting here.
Arif's Avatar
 
Join Date: Jun 2005
Posts: 761
The rentals I bought that were built in the 70s and 80s are better built overall than the flips I sold that were built in the 90s and 2000s. Most of the newer homes had issues with the argon gas leaking out of the window panes and fogging up. Lots of cheap material that wouldn't last 30 years like the 70s homes.
I wouldn't buy a new home. Our neighbor has had so many AC/plumbing issues with their house and it's only 3 years old. The builders are throwing up houses in our neighborhood in about 3 months. A lot of short cuts.
__________________
You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill - you stay in Wonderland and I show you how deep the rabbit-hole goes.
Arif is offline   Reply With Quote
Old 05-14-2009, 05:37 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,913
The oldest condo completely replaced its plumbing about 10 years ago, the engineering firm featured the project on it's website. The building wiring as far as the distribution box on each floor is up to date (replaced that too). The condition of the wiring of each unit will depend on what the owner has done. It is large enough to have on-site maintenance. If the owner has an issue they fix it for the cost of materials. All remodeling that involves electrical or plumbing must be done under a building permit in the name of the building.

Ah, no pets, period.

Not for everyone to be sure, but for an older (not quite elderly) couple ..

Oh yes, the comment about condos that sell for the surrounding single family dwellings... that describes the other option when relative square footage is accounted for.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 05-14-2009, 11:56 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,380
Thanks for the helpful comments.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 05-17-2009, 02:35 PM   #12
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Was at the lake a couple weeks ago ... my neighbor had roofers working his 3 yo roof (we built together ... YIKES!). Turns out they "ran out" off tar paper. And didn't use lead to seal the chimney. Nasty leakage around the chimney ... running all the way to the ground floor. Now MOLD in the wall cavity on the ground floor. Tried to make an insurance claim ... was told it's a legacy problem "sue the builder".

Keeping my finger - and toes crossed - no leaks yet.
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 05-17-2009, 05:52 PM   #13
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 242
A little OT, but I went to an open house today - a cute house near the beach all renovated. The next door neighbor has two ROOSTERS and a penchant for flying flags (like the Japanese flag on July 4th).
__________________

__________________
Sparky is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Home Construction 2 x4 or 2 x 6 framing runnerr Other topics 27 01-27-2013 11:17 AM
The home construction industry is really hurting UncleHoney FIRE and Money 9 09-03-2008 07:45 PM
Labor/Profit in construction Trek Other topics 6 05-24-2008 10:27 PM
Nuclear Power Plant Construction haha Stock Picking and Market Strategy 16 08-12-2007 09:50 PM

 

 
All times are GMT -6. The time now is 08:45 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.