Builder's Warranty Versus Home Inspection

Many home builders will convince a buyer that therethe other more serious problems found at new
is no need for a home inspection at a new home.houses are also typically down in the crawlspace: dirt
The builderwill even dangle a carrot in front of thepacked around posts and other structural wood that
buyer - who is likely to be feeling a cash crunch -- bywill rot; plumbing pipes that leak or drains thatare not
offering aone-year warranty on the home. Now, stophooked into the system, which can be nasty.
and think about it. If the builder is so sure that theOne thing you can count on is that, one year later,
home is properlybuilt, and the project is completed,unless the buyer finds and reports problems, the
why is he or she so worried about having anbuilder is notgoing to drive out to the house and
independent home inspector gothrough the property?seek out trouble. As a safeguard, some people will,
In my experience, the answer is simple: The buildereleven months after theymove in, hire a home
knows there will be problems found and,almostinspector to find issues to report to the builder at the
always, these issues will require the builder's crew toeleventh hour. The problem with thathas to do with
come back on site to make modifications or repairs."clout." The buyer has lots of power prior to closing
That costs the builder time and money.-- when he or she has control over hundreds
Understand this: The builder makes a living by movingofthousands of dollars that the builder wants. After
his crew to new jobs, finishing and selling thoseclosing, the circumstances change and the builder has
houses. Thebuilder does not benefit financially if it isthe money,and the clout. In fact, I know of a
necessary to linger at any one job. Therefore, asituation where the buyer, a year later, was
home inspector'sfindings and repair recommendationscompletely ignored by the builder,despite having valid
are likely to slow down the builder by making itworries. That particular builder knew that, even
necessary to send a crew backto a previouslythough there were legitimate problems thatwere
completed project. Obviously, the builder does notaggravating, it was not likely that the buyer would
like that! I always keep forefront in my mindthat myspend the money to file a lawsuit. In one case I
client is the buyer, not the builder. Realizing that, Iknow of,a buyer had been told before closing that he
always recommend that my clients get anwas being provided with a one-year builder's
independenthome inspection by a competentwarranty. Eleven monthslater, when a home
residential home inspector who is also a licensedinspector reported significant standing water in the
structural pest inspector. I wantproblems identified,crawl space, the homeowner could not findanything in
and or repaired, prior to closing in both older homeswriting to support his understanding that there was a
and new homes.builder's warranty. The builder was unresponsiveto
Without going into too much detail, here are some ofrepair requests. This scenario might lead to lawsuits
the complications involved if one is counting on athat draw into the mess parties that should have little
builder'swarranty as a substitute for a proper homeorno blame in the dispute, such as realtors or title
inspection. In my market, a large number of thecompanies.
problems found at newhomes are concealed and willIt is, because of complications like this, that I
not manifest themselves as issues until some timerecommend the simplest and the correct path: I urge
down the road - likely more than ayear away. Forall of mybuyers to have an independent home
example, people do not go into their crawl spacesinspection prior to closing. That advice applies to
and significant standing water in the crawl spaceisthose purchasing brand newhomes or older homes. I
one of the most common problems with newbelieve that, in all cases, my clients are better off
construction. From day one, as this water evaporatesnegotiating solutions to problemsprior to their closing
up, it will leadto excess moisture in the structuralthe deal and moving in. That scenario is preferable for
wood, insulation and up inside the home. Over time,the clients, the realtors involvedand everyone --
this is likely to attractwood destroying organismsexcept maybe some of the builders. I like to see all
such as rot, or even wood destroying insects thatof the problems put on the table early in
favor moist environs. Excess moistureis a primethenegotiations so I do not have upset, angry or
contributor to eventual mold growth in the crawldiscouraged clients down the road. If you enjoy
space or even up inside the house or walls. Yet,repeat business andhappy clients, it is just good
unlessthere is a musty odor, or some obvious clue atbusiness - that creates goodwill -- to protect your
some point, this problem would not be identified orclients by seeing to it thatthey know the benefits of
even noticed bythe average homeowner. Make nohaving a competent inspector do an independent
mistake about it, the problem will make itself known,home inspection prior to buying any home.
but it could be a few yearsdown the road. Many of