Hi,

Next week I'll begin negotiations with a builder regarding a home that has
been framed in and is nearing the bricking stage. It will be the first
home I've purchased (although I've bought, and own outright, a
Condominium). I have a few basic questions. First, note that the builder
has a good reputation: He's built two homes in the neighborhood already,
and a third with his Father-in-Law, and the owners are very happy with his
work. Furthermore, folks that live in adjacent homes have watched him
build, and they have been pleased with what they've seen.

1. Are there any forums, web-based or Usenet, that are very active and are
designed for those that are building homes?

2. I need to study-up on contracts (if we succesfully negotiate I will
sign a contract and give him earnest money), most especially contracts that
are signed in mid-construction, when quite a bit is left to do. Generally
speaking, how detailed should the contract as regards what the builder is
obligated to do with the remainder of the construction? In other words,
should it contain details like soffet lights, types of doors, number of
electrical outlets, countertop materials, etc, or should it address those
issues in broad terms? One of the things I'm most concerned with is the
quality of the HVAC unit, Water Heater, and Appliances.

Many thanks,
--
hfk

MS Messenger ID:

frank wrote:

are signed in mid-construction, when quite a bit is left to do. Generally
speaking, how detailed should the contract as regards what the builder is
obligated to do with the remainder of the construction? In other words,
should it contain details like soffet lights, types of doors, number of
electrical outlets, countertop materials, etc, or should it address those
issues in broad terms? One of the things I'm most concerned with is the
quality of the HVAC unit, Water Heater, and Appliances.

Things like number of electrical outlets have some minmum standards
set by code, but it would be wise to put down in writing anything
you want above and beyond the minimums. Basically, anything you
really want to be sure you get, upgraded appliances for example,
you want to have in writing as a rider on the contract.

If you specify a particular model of refrigerator and it is not
readily available, the contractor will know that this is important
to you and talk to you about an appropriate substitute. If you
don't specify it, he would probably just go to another supplier
without a word.

I would not go so far as to specify how far off the floor the
outlets are placed unless you have a good and specific reason
to do so. There are standard placements for that, but if you
have some special situation where you need an outlet at eye
level in the living room, then certainly specify that one case.

I hope what I'm saying makes sense, and good luck.

Bill Ranck
Blacksburg, Va.

frank wrote in message . ..
2. I need to study-up on contracts (if we succesfully negotiate I will
sign a contract and give him earnest money), most especially contracts that
are signed in mid-construction, when quite a bit is left to do. Generally
speaking, how detailed should the contract as regards what the builder is
obligated to do with the remainder of the construction? In other words,
should it contain details like soffet lights, types of doors, number of
electrical outlets, countertop materials, etc, or should it address those
issues in broad terms? One of the things I'm most concerned with is the
quality of the HVAC unit, Water Heater, and Appliances.

When we sat down to sign our contract, the builder had already specced
out the appliances and finishes, and had a notebook for us to look at
showing the basic models, and what we could upgrade to. You might do
some shopping on your own to see what appliances you like, for
example, and find out what it would take for your builder to provide
them. These items were not part of the physical "contract" itself, but
the contract said the house would be built according to the specs we
agreed to, and the specs themselves (for appliances, finishes,
upgrades) were all signed by us and the builder.

One other thing to consider is what happens if deadlines are missed. I
recently read about a couple in an area where housing prices are
skyrocketing (somewhere in California, as you can imagine) who found
that when they were unable to close on the scheduled date (due to
problems with the lender), their original contract was null and void.
Their options were to get their deposits back and start over, or sign
a new contract to buy the house at its new price ($50K more than the
original contract). Conversely, a FOAF contracted to have a structure
built and did not include a deadline to have the building finished.
Stupid, I know, but sometimes one can overlook the big things when
concentrating on the details.

"frank" wrote in message
...
Hi,

Next week I'll begin negotiations with a builder regarding a home that has
been framed in and is nearing the bricking stage. It will be the first
home I've purchased (although I've bought, and own outright, a
Condominium). I have a few basic questions. First, note that the builder
has a good reputation: He's built two homes in the neighborhood already,
and a third with his Father-in-Law, and the owners are very happy with his
work. Furthermore, folks that live in adjacent homes have watched him
build, and they have been pleased with what they've seen.

1. Are there any forums, web-based or Usenet, that are very active and
are
designed for those that are building homes?

2. I need to study-up on contracts (if we succesfully negotiate I will
sign a contract and give him earnest money), most especially contracts
that
are signed in mid-construction, when quite a bit is left to do. Generally
speaking, how detailed should the contract as regards what the builder is
obligated to do with the remainder of the construction? In other words,
should it contain details like soffet lights, types of doors, number of
electrical outlets, countertop materials, etc, or should it address those
issues in broad terms? One of the things I'm most concerned with is the
quality of the HVAC unit, Water Heater, and Appliances.

it depends upon how involved you want to be, and if you want special things,
like where or how many plugs in which wall at what locations, where switches
are to be, where the pot lights in the ceiling are, choices of colors as
well as types of counters, etc.

a builder may or may not want to be that bothered if they're building a
spec, but on the other hand, if he makes you happier, his spec may pay off
in a quick sale. most probably he'll give you an allowance for certain
items, and if you want more or special things, then you'll have to pay
extra.

you need a lawyer to draw up a contract. you can be sure he'll have one.

Many thanks,
--
hfk

MS Messenger ID:

I would also add that to rely on codes to be definitive would be a mistake.

I know of owners in Texas who built in communities using codes, but the
inspectors didn't inspect or "overlooked" discrepancies. If your
contract includes a requirement for "binding arbitration" demand that it
be stricken or find another builder. I personally know of more than one
individual who had code violations on their home, filed for arbitration
and the arbitrator said it wasn't "necessary" to bring the home to code
compliance. Some of the "home warranty" companies even have a clause in
their contract that specifically exempts them from repairing defect to
meet codes. Yet the owner when they sell will have to disclose it if
they are to be honest in the listing.

Gary

On Fri, 15 Oct 2004 11:36:13 -0500, someone wrote:

.... If your
contract includes a requirement for "binding arbitration" demand that it
be stricken or find another builder.

If the builder is busy and it is a seller's market, the chances of
SUCCESSFULLY imposing such a "demand" are low. It will do them no net
good to scrape up a builder that will take such a contract, if the
only ones who don't are shoddy fly by night builders. Sounds like you
had an unsuccessful result in arbitration. But that still doesn't
make that one consideration controlling to most other people.

-v.