Builder's Warranty Versus Home Inspection

Many home builders will convince a buyer that therefew years down the road. Many of the other more
is no need for a home inspection at a new home.serious problems found at new houses are also
The builder will even dangle a carrot in front of thetypically down in the crawl space: dirt packed around
buyer - who is likely to be feeling a cash crunch -- byposts and other structural wood that will rot;
offering a one-year warranty on the home. Now,plumbing pipes that leak or drains that are not
stop and think about it. If the builder is so sure thathooked into the system, which can be nasty.
the home is properly built, and the project isOne thing you can count on is that, one year later,
completed, why is he or she so worried about havingunless the buyer finds and reports problems, the
an independent home inspector go through thebuilder is not going to drive out to the house and
property? In my experience, the answer is simple:seek out trouble. As a safeguard, some people will,
The builder knows there will be problems found and,eleven months after they move in, hire a home
almost always, these issues will require the builder'sinspector to find issues to report to the builder at the
crew to come back on site to make modifications oreleventh hour. The problem with that has to do with
repairs. That costs the builder time and money."clout." The buyer has lots of power prior to closing
Understand this: The builder makes a living by moving-- when he or she has control over hundreds of
his crew to new jobs, finishing and selling thosethousands of dollars that the builder wants. After
houses. The builder does not benefit financially if it isclosing, the circumstances change and the builder has
necessary to linger at any one job. Therefore, athe money, and the clout.
home inspector's findings and repair recommendationsIn fact, I know of a situation where the buyer, a
are likely to slow down the builder by making ityear later, was completely ignored by the builder,
necessary to send a crew back to a previouslydespite having valid worries. That particular builder
completed project. Obviously, the builder does notknew that, even though there were legitimate
like that! I always keep forefront in my mind that myproblems that were aggravating, it was not likely that
client is the buyer, not the builder. Realizing that, Ithe buyer would spend the money to file a lawsuit. In
always recommend that my clients get anone case I know of, a buyer had been told before
independent home inspection by a competentclosing that he was being provided with a one-year
residential home inspector who is also a licensedbuilder's warranty. Eleven months later, when a home
structural pest inspector. I want problems identified,inspector reported significant standing water in the
and or repaired, prior to closing in both older homescrawl space, the homeowner could not find anything
and new homes.in writing to support his understanding that there was
Without going into too much detail, here are some ofa builder's warranty. The builder was unresponsive to
the complications involved if one is counting on arepair requests. This scenario might lead to lawsuits
builder's warranty as a substitute for a proper homethat draw into the mess parties that should have little
inspection. In my market, a large number of theor no blame in the dispute, such as realtors or title
problems found at new homes are concealed and willcompanies.
not manifest themselves as issues until some timeIt is, because of complications like this, that I
down the road - likely more than a year away. Forrecommend the simplest and the correct path: I urge
example, people do not go into their crawl spacesall of my buyers to have an independent home
and significant standing water in the crawl space isinspection prior to closing. That advice applies to
one of the most common problems with newthose purchasing brand new homes or older homes. I
construction.believe that, in all cases, my clients are better off
From day one, as this water evaporates up, it willnegotiating solutions to problems prior to their closing
lead to excess moisture in the structural wood,the deal and moving in. That scenario is preferable for
insulation and up inside the home. Over time, this isthe clients, the realtors involved and everyone --
likely to attract wood destroying organisms such asexcept maybe some of the builders. I like to see all
rot, or even wood destroying insects that favorof the problems put on the table early in the
moist environs. Excess moisture is a prime contributornegotiations so I do not have upset, angry or
to eventual mold growth in the crawl space or evendiscouraged clients down the road. If you enjoy
up inside the house or walls. Yet, unless there is arepeat business and happy clients, it is just good
musty odor, or some obvious clue at some point, thisbusiness - that creates goodwill -- to protect your
problem would not be identified or even noticed byclients by seeing to it that they know the benefits of
the average homeowner. Make no mistake about it,having a competent inspector do an independent
the problem will make itself known, but it could be ahome inspection prior to buying any home.