Building a New Home

[Mass_nerder]

First, I'm going to start off by acknowledging that, yes, there is a real estate sub forum. I'm posting this in OT, because I suspect the real estate section may not get much traffic. If it needs to be moved, that's cool.

My sister and her boyfriend are looking to get a new house built in an area of Houston undergoing redevelopment, and are therefore dealing with a predetermined developer if they want to be in this specific area. The developer has shown them plans that they like, but has also advised them that some things shown in the plans may not actually built by the construction company (smaller things like cabinetry in the laundry room etc...). She's worried that the builder might conveniently also not include more important features that were on the plan, such as the kitchen island etc...

I'm an architectural technologist, so I have some decent background in the subject, and have been trying to offer some insight. It's been 5-6 years since I was in school, and I've only worked in commercial offices, so I'm a little rusty.

First, I told her that it sounded like the developer was a little shady, as they were already making excuses on why things in their plans were omitted from the house before it was even built. Why include them at all, if they don't expect the construction company to comply?
I advised her to get a hold of the house spec, and review it (possibly higher a spec writer to help look it over) to ensure everything they're looking for is included in the spec.
I also advised her to look into using a real estate agent to purchase the house, as they would be able to review the sales documents, and include any stipulations my sister wanted written in to the contract. She said that they could save 3% on the purchase price by not using a real estate agent. I'm not sure if that's an incentive the developer is offering, or if she's referring to realtor fees. In an case, I told her to at least, have the documents looked over by some sort of real estate professional.

Any previous experience/ advice with this sort of situation?

[Northendzone]

When we built, if it was in the plan, it was part of the house and consequently part of the price/contract.

[Bean]

Building in Houston or in Calgary I'd suggest that if things aren't clearly stated in documentation or in the blueprints, then you will not be guaranteed the item upon completion.

I hate the "save $$$ by not using your realtor" angle, it further gives you less defence and knowledge when you buy one of the biggest things in your life.

I'd bring a realtor so you'd have somebody who would serve your best interests. 3% doesn't seem very expensive to avoid problems down the road.

[HockeyIlliterate]

Originally Posted by Mass_nerder

My sister and her boyfriend are looking to get a new house built in an area of Houston undergoing redevelopment, and are therefore dealing with a predetermined developer if they want to be in this specific area.

Where in Houston, and who is the developer? Perry Homes?

Originally Posted by Mass_nerder

The developer has shown them plans that they like, but has also advised them that some things shown in the plans may not actually built by the construction company (smaller things like cabinetry in the laundry room etc...).

A statement to that effect is pretty standard language on building drawings and mock-ups shown to prospective buyers.

Originally Posted by Mass_nerder

I also advised her to look into using a real estate agent to purchase the house, as they would be able to review the sales documents, and include any stipulations my sister wanted written in to the contract.

Agreed. There are ways to draft the purchase contract up so that what is shown in a drawing is included in the deliverables.

Originally Posted by Mass_nerder

She said that they could save 3% on the purchase price by not using a real estate agent. I'm not sure if that's an incentive the developer is offering, or if she's referring to realtor fees.

The realtor fees are already built into the sales price. It seems a little unlikely that the developer would reduce the price by 3%; it is more likely that the developer would "throw in" a few upgrades. Of course, getting a few upgrades thrown-in is just as likely to occur by using a realtor. So they should get a realtor.

BTW, suggest that they get a good inspector to follow the progress of the build and that they make daily check-ups and check-ins as well. No one is going to care how the house is built more than the buyer.

[REDVAN]

I'm sure this is in another topic so I hate to hijack this one- but:

We are starting to look at a new home in Calgary. What experiences do people have with different companies and can you recommended any contact people at those companies to help us get started on pricing, locations, etc?

[automaton 3]

Originally Posted by Mass_nerder

I advised her to get a hold of the house spec, and review it (possibly higher a spec writer to help look it over) to ensure everything they're looking for is included in the spec.
I also advised her to look into using a real estate agent to purchase the house, as they would be able to review the sales documents, and include any stipulations my sister wanted written in to the contract. She said that they could save 3% on the purchase price by not using a real estate agent. I'm not sure if that's an incentive the developer is offering, or if she's referring to realtor fees. In an case, I told her to at least, have the documents looked over by some sort of real estate professional.

Any previous experience/ advice with this sort of situation?

Good advice on reviewing the plan and spec sheet carefully.

Not sure why you'd hire a real estate agent to review docs when you can hire a real estate lawyer. There are a few that post on this site.

[Northendzone]

Originally Posted by REDVAN

I'm sure this is in another topic so I hate to hijack this one- but:

We are starting to look at a new home in Calgary. What experiences do people have with different companies and can you recommended any contact people at those companies to help us get started on pricing, locations, etc?

We built with Cardel in new brighton, 10 yrs later the house is still standing.


Someone will likely comment on how Cardel sucks and that is fine. Our building expeirce was not perfect, but that being said, I'd consider using them again.

[Ozy_Flame]

Looks like she's staying down there for a while then, eh Mass_Nerder? She has shaken all of her Calgary roots off for good I see

And OMG yes - use a real estate agent. Especially if she's never done this before.

[rohara66]

Originally Posted by REDVAN

I'm sure this is in another topic so I hate to hijack this one- but:

We are starting to look at a new home in Calgary. What experiences do people have with different companies and can you recommended any contact people at those companies to help us get started on pricing, locations, etc?

Start with what community you want to live in and what style house (laned or landed) you need. That will narrow down your builders right off the bat.

[return to the red]

asking "what's a good builder" is like asking what's a good car. Different builders are suited for different price points and concentrate on different appeals of their homes.

Whenever selecting a builder price isn't always JUST the deciding factor. make sure you look at all the smaller details like finishing packages, etc. Know everything you are getting from each builder and compare them to each other. Take a walk through some of the show homes. Make note paint, carpet, anything that might wear or show wear faster because of the quality of workmanship or product selected.

Building a house is a huge financial commitment that YOU are paying for. It is in YOUR right to demand more from the builder if they aren't meeting your expectations but it's also YOUR responsibility to make sure that corners aren't being cut because they do also sub out trades.

When I built my first house I was awed by the process and the builder. 5 Years after the fact I wouldn't build with them again because there are so many little things that I never noticed as a first time builder that I would be all over now when I build again.