Down here at the home office in Boulder, Colorado,
our e-mail box is overflowing with great suggestions from our
readers. Here's a selection of the most recent comments, ideas,
bargain tips and advice. Of course, if you'd like to add in your
two cents, feel free to e-mail
us.
If you're new to this page, you can check out previous mail in our archive files linked below.
WARNING: Links to other web sites on this page are informational only. They do not constitute an endorsement by us or our book, YOUR NEW HOUSE. Be sure to check out any sources carefully before ordering.
New home pitfalls
Alan and Denise Fields,
As long as I'm writing you I might as well pass along the rest of the
story of my wife and I building our house (obviously, please don't
post this with my name or e-mail address).
The project is complete, we moved in the week before Thanksgiving. We
had an overall wonderful experience with very few problems, and we
loved our builder. About the only pitfalls we experienced were: The
brickyard that produces the brick we picked went on strike just before
filling our order, causing us to have to pick a new brick and get it
ordered in one day, without being able to see the new brick on any
houses and without knowing how well it would match our trim which was
already ordered to match our original brick selection.
And, when the plumber came to hook up our water and sewer to the
utility company's system, he discovered that the sewer and water were
not stubbed at our property lines like the seller of the lot had
stated (and shown drawings to prove). That cost us an extra $3000 to
burrow under the street to get to the water and sewer. Now we are
trying to recoup that money from the seller of the lot and his real
estate agent since they did misrepresent the lot by saying that the
water and sewer were stubbed at the property line. I'm not sure where
it will end up, but they have already made some offers to settle. One
things for sure... the lawyers will make money on this.
If I could go back in time, I'd make sure that the contract for the
lot stated "THE SELLER REPRESENTS THE FOLLOWING:" and then put the
fact that the sewer and water where there. Our contract read:"THIS
CONTRACT IS CONTINGENT UPON THE FOLLOWING:", which gives us much less
power 'after the fact'.
We can't complain, however, since that was our only overage and it was
more than made up for by us putting in a little 'sweat equity' and
also by having a few things actually come in under budget.
Again, thanks for the all the good advise in your book.
Sincerely,
Walt
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Wed, 29 Dec 1999 08:38:15 -0500
Buyer's agent problem
Alan & Denise
Let me preface this email by applauding your books 2nd and 3rd editions of
"Your New House", great tips and money saving tips.
However or the but or rub, "Buyers Broker" (BB) resource that was
referenced in both books witha telephone number of 800 359 4092. After
several questions regarding a BB, I received a call from Coldwell Banker
and LaVern Heiner and which time I requested a copy of their BB contract.
Forty- eight hours later I received a contract with a compensation of 4.5%
of purchase price and the following notation. "Buyer agrees that if Broker
locates a property that is listed by one of Brokers salespersons other than
Agent,then Buyer consents to Broker acting as a dual agent. Buyer further
agrees that if Broker locates a property listed by Agent then Buyer
consents to Agent and Broker acting a dual agents." WOW, and they were
canned before they were hired. I understand that it may be difficult to
find a exclusive BB in the suburbs of Vancouver, WA, but Coldwell Banker
would NEVER have a exclusive BB.
I suggest that the resource in Denver is associated with the NRA and not
with the best interests of the consumer.
Steve Howell
Building a custom home
I am currently in the planning phase of building a custom built home,
and after reading a recommendation by Mr. Robert J. Bruss I went out
immediately and bought your book. I have a library full of how-to-books
and other real estate books that provide a wealth of information on architects, builders and construction projects. I've only begun to read your book and have found it to be immensely useful and informative. It is quite honestly the best how-to book that I've read and it is my "bible" for this project. The only negative comment that I can say is that this book has too many typos. Aside from that, thank you for this great book. It came at the right time!
Mr. Luis Saavedra
Problems in Jacksonville, FL
Trademark Home Builders
Jacksonville, FL
Ref: Plum Tree Subdivision
Home of Nancy & Richard Marshman
List of items that need to be corrected most of which have been submitted to
the builder - NO RESPONSE.
1. A period of 6 weeks passed before Trademark was able to get framing
design approved by City inspector; meanwhile we were penalized and forced to
pay $850 dollars out of pocket to maintain our home closing percentage rate
at the time of our closing.
2. Our master bath shower was not completed upon closing on August 6, 1999.
We were promised by Trademark Home Builders that our home would be
completed to our satisfaction. It is now two and a half months later and our
shower is still not completed. We paid $1500 extra to upgrade the shower to
include a larger tiled shower with glass enclosure as shown in the model
home. We were not told of any different shower enclosure heights and even
the sales person was not aware of any different dimensions offered other
than what was available in the model home.
3. The hall bathroom medicine cabinet mirror is chipped and has not been
replaced.
4. The vinyl flooring between the hall and the kitchen is separating and
needs to be replaced or fixed. At this time, Trademark Home Builders has not
made any effort to fix this. There are also drops of paint on the vinyl
flooring throughout the house.
5. The framing around the outside of the front door is several inches short
of meeting the threshold on both sides.
It was also very poorly caulked and painted.
6. The air conditioning drain pipe needs to be redirected for proper
drainage.
7. The column in our living room that separates two living spaces has a 12"
curved gash in the lower part of the column. There are also numerous areas
on the interior walls that need to be resurfaced.
8. The garage has broken concrete and has not been cleaned or scraped.
9. Exterior brick at the right of the front door entrance has a piece of
pressed board stuffed under the brick instead of mortar. (Can you believe
it!)
10. When a new home is purchased the builder and buyer make a contractual
agreement as well as a bargain in good faith to complete the construction
and payment of the home as required in the contract. As home buyers, we
were required to pay a large sum of money to purchase this home. We were
purchasing this home because we liked the model home and were told our house
would be built like the model, with those specifications. We paid for
upgrades as required by the builder and up until the time of closing the
builder was anxious to make us happy. We were assured everything on our home
would be completed to our satisfaction. Unfortunatly, that has not happened.
Trademark Builders has now become difficult to deal with and has made little
effort to uphold their part of our contract. I WOULD NOT RECOMMEND TRADEMARK
HOME BUILDERS. IF YOU ARE CONSIDERING BUILDING A NEW HOME, AS THEY SAY,
BUYER BEWARE!
Negotiating over the price of options
Hi Alan & Denise,
My fiancée and I have been looking for a new home in the Washington D.C.
metropolitan area for the past few months. Like it says on your cover, I
think your book is "the best book available on how to buy and build a new
home." I've read your book from front to back several times and I don't
know what I would do without the valuable advice in your book. It's funny,
when I told my fiancée about your book, she told me, "Hey, they are my
favorite authors!" I was surprised to hear this, but then she said, "My
favorite wedding book is Bridal Bargains."
Anyway, the main reason why I'm writing is I'm curious to get your opinion
on negotiating over the price of options on a new home. We've received two
cost estimate evaluations from two different production home builders with
approximately a $350,000 base price and $40,000 of upgrades. Our buyer
broker has been unable to negotiate down from the "sales price" offered by
the site agents. I've always been under the impression options are
negotiable. Do you think today's market is "hot" and we should accept the
builder's terms or do you think we have some leverage and the builder will
eventually knock off $10,000 to $20,000 off the final price of the home?
I'm curious to see the experience of other home buyers in regards to
negotiating over the price of options. This might be something good to add
to your web site.
Thanks,
Mark Chen
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Thu, 14 Oct 1999 07:08:29 -0400
Our Reply
Mark
Thanks for reading our book, YOUR NEW HOUSE! And our wedding book too! We appreciate your kind words.
Well, good question. I'm not sure there is any secret to negotiations on options---all you can do is offer a builder the price YOU THINK is fair for the home (total--base+options) and they can accept or reject that. They might counter-offer your offer and you arrive somewhere in between. But, as you've discovered, in hot markets (and most metro areas including DC would qualify as that now), builders take a hard line. They may not negotiate at all. Then the best you can do is to make sure you are not overpaying---have your agent examine recent sales in the area and make sure the price you might pay per square foot does not set any new land speed records. If the TOTAL price for the house is in line with recent sales, then that's the best you can do.
Wish we had a better answer,
Alan & Denise Fields, Authors
BRIDAL BARGAINS * BRIDAL GOWN GUIDE * YOUR NEW HOUSE * BABY BARGAINS
Email: authors@windsorpeak.com. Web: www.windsorpeak.com. Phone: 303-442-8792
Problems with builders…
Dear Denise and Alan,
I really enjoyed your book, Your New House, and it came in very handy as
my husband and I were building our, "dream home". I have a very odd
question to ask you. I hope that you can help.
To put it bluntly, almost everyone who built my house was an intoxicated
idiot. I kept complaining to my builder about beer cans all over my
property while the house was being framed. They finally told the framers
to throw the beer cans in a trash can. Wow, isn't that nice. My house
was finished 9 months ago. You can not find a wall in my house that is
plumb. I have not had a master shower in 6 months because of a, "little"
flood. My floors just had to be ground down and new stain and
polyurethane had to be applied. This means everything I own is covered
in saw dust and stain. Would y'all happen to know anything that I can
do. My builder is trying to repair everything, to his
satisfaction. HA! I would love to have it on record that my builder, (a
very large building company in the south), knowingly used people to
build my house that were consuming or who had consumed alcoholic
beverages. My punch-out man was told to leave my house one day because
he was too drunk to paint the wall. Can you imagine how drunk a person
has to be to not be able to paint a wall? Now, I do enjoy a good
margarita but, I don't drink them and then go build someone's home. Oh,
and I have not even mentioned the little guy we found urinating in our
basement, even though there was a portapotty 10 yards from him. I COULD
SCREAM. If there is any advise y'all could give me, it would be greatly
appreciated.
I am such a fan of all your books. I have used the baby, house, and
wedding books and they have been the most helpful tool in all
occasions. Keep writing. Again, any information at all would be greatly
appreciated.
Thank You,
(Name withheld by request)
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Thu, 30 Sep 1999 16:42:09 -0400
Comments on holes cut into joists..
On page 218 second edition Your New house Money Bomb #$ you make some comments about holes cut into joists. I don't think that you have it exactly right.
From my engineering course I recall that in a beam the stress/strain is zero at the exact middle of the beam, thus the middle isn't a bad place to cut a little hole. Stress/strain is maximum at the edges. I think that your are correct in thinking that notches/holes in general weaken the beam and that electricians/plumbers aren't necessarily interested in the structural integrity of the project..
There is a fairly good, non technical, discussion of this in the January 1997 Fine Home Building (page 66) magazine. The 1995 SBC High Wind Edition Wood Frame Construction Manual for One and Two Family Dwellings (American Forest & Paper Association/American Wood Council) page 102 says " Notches in the top or bottom edge of solid-sawn joists shall not be located in the middle one-third of the joist span. Notches in the outer thirds of the span shall not exceed one-sixth of the joist depth. Where notches are made at the supports, they shall not exceed one-fourth of the joist depth. Holes are limited in diameter to one-third of the joist depth and the edge of the hole shall not be closer than 2 inches to the top or bottom edge of the joist."
I read this to mean that notches in the top/bottom of the joist are not a good idea, especially in the middle of the length of the joist.
I have really enjoyed reading your book and have found it very helpful. Thanks!
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Fri, 17 Sep 1999 14:19:48 —0400
When to demand your $ back?
Alan and Denise:
Your book, "Your New House" has been the best, most straightforward book on getting a quality home that I have ever read. I appreciate that you tell it like it is rather than being 'politically correct' to the industry.
One thing that I couldn't find in the book was when do you walk away and demand to get your money back?
We are in the process of building for the second time. We are in a 'production' neighborhood where there are only 88 lots and two builders building $260-$350 k homes - so basically on the high-end of production homes. Our builder is fairly new to the Dallas-Fort Worth area, having more history in Austin and Houston, so you would imagine they want to build a good image in this market. We checked them out with the BBB and I even had a friend who had them build a home for them in Austin with no issues.
Everything seemed to go well until the framing started. If you are familiar with Dallas (your book mentioned some roots to this area), you know that most of the construction is on a post-tension slab and therefore, the plumbing is roughed in before the slab is poured. Once the framing started it was suddenly evident to us that the plumbing was off throughout the house. In the kitchen the hot/cold pipes and drain for the kitchen sink was over 4 ft from the nearest wall. If this wasn't bad enough, the conduit for slipping electrical to the floor plug (plug was correctly placed) is attached to this set of pipes and would have to be moved as well. A toilet pipe is off by over 3" in an enclosed area; there are extra hot/cold and drain pipes in the middle of the floor in another bath room, and a sink and bath tub plumbing is over 3" into a bedroom. As your book advised, we involved a private inspector and learned about even more problems, mostly fixable framing problems that are a result of little supervision and lack of attention to quality. Additionally, he thinks we could have a potential slab issue with a lack of ground support on one corner of the house because of the way the driveway was installed. We have made all of these issues evident to our sales person and the VP of construction and VP of sales have been made aware too.
While we have been talking to the builder about options other than jackhammering the slab to remedy the kitchen (a kitchen redesign), I am worried that there are so many potential problems down the road with all the plumbing mistakes that we are making a mistake with this investment.
Do you, or someone you know, have any experience with the issues that may arise with these plumbing mistake and the effects of all the re-dos? Is this as common of a mistake as they say and hardly something we should consider serious? Are we better off just trying to get our deposit back - assuming we have enough reason to do so?
I would appreciate any help you can give us or other resources we should consult to give us guidance on these issues.
Natalie Alfrey
Smaller acreage than expected
We were just about to close on a beautiful wooded country lot here in
Southern WI when we finally got the perk test and boundary map we had contingencies for. Upon looking at the boundary map (done by a professional surveyoronly weeks ago) we discovered that the acreage of the lot was actuallyhalf an acre smaller than the 1.2 acres we expected!
This, combinedwith the setbacks on an extremely irregularly shaped lot, left us with very limited building area. When we pointed this out to the realtors,
we were given every excuse in the book. When we told the bank
why we were backing out at the last minute, they were appalled and
thanked us for being so diligent. We would never have been so careful
if I hadn't read your book and developed a healthy paranoia regarding
the whole building market. I've been getting some rather poisonous
looks from the builders, architects and designers when I ask them some
of the questions in your book. I rather enjoy making them
uncomfortable. Thank you for helping me feel empowered during the home
building process. - Jenifer Keach, Janesville,WI.
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Wed, 11 Aug 1999 05:37:32 -0400
Agent vs. builder
Well let me start off by saying we did everything wrong by not reading
your book first. This was largely because we did not hear of it until
after. We didn't use a broker we used the Agent representing the
builder. We had wanted to put in an offer for $3000 dollars less then
what we did but the Agent said she would not submit the offer because it
was too low. So we upped it $3000 and it was accepted right off the
bat. Later we were told that it is illegal for the agent to not submit
our offer. Is this true and can anything be done about this now so that
other people who haven't read your book don't fall into the same trap.
Thanks
Andrew Hilden
Architect vs. Study plans
Denise & Alan -
I decided to take another look at your readers comments to "Your New House" since it has been a while since I had last looked. Though I'm sure it is too late to be of help to Scott who wrote the comments between 3/98 and 12/98, this may be of some help to others who share his concerns (I'm one of them).
I'd hate to count the number of plan books my wife and I have looked at over the last 14 months and whenever we've found a plan that looked like it might meet our requirements we were left wondering whether we could afford to build it, yet not wanting to spend the money to purchase a Study Plans Package that we might not like after we reviewed them. ($ down a rat hole).
We've since discovered that some of the plan books offer a building cost
estimating service for some of the plans in their books. The service is
considerably more affordable and provides estimates for "Good", "Better", &
"Best" levels of quality and considers labor costs for the zip code in which
you intend to build. The estimate even breaks down into various major cost
elements like foundation, framing, plumbing, electrical, roofing costs, etc.
If their estimates are still too high for your budget, at least you're not
out much and you are better informed as to what size range you should really be considering. If their estimates are within you budget, you can then
proceed to the next step and purchase the Study Set and complete materials
list with some confidence that you're heading in an affordable direction.
If you're like us, no stock plan is perfect and you may want changes like
larger or smaller dimensions for one or more rooms, a third garage, move or
add a fireplace, etc. If that's the case, you should probably start looking
for a local architect rather than buying the Study Plans. At least you know
about what it will cost to build and what the floor plan and front elevation
should resemble.
Even if you are in love with the plans and budget estimate, it's wise to
check with the construction permits department for the area in which you plan
to build. Often times, they will not issue construction permits unless your
blueprints are "sealed" by a locally licensed architect or engineer since the
plans may not conform to local codes.
We've decided to go with a local architect, (yet to be found), rather than to
buy print sets from an out of area source and then get them "sealed" by a
local firm. It costs almost as much as starting from scratch! If you're
going to pay that much, we feel we'd be better off paying to get exactly what
we want into the plans and specs with confidence that we're dealing with one
point of contact with total responsibility for completeness and conformance
code and our requirements.
It's been a long haul to this point and a lot longer to go but we've made
progress since we first read your book. We've purchased our lot at Big Bear
Lake and started the process of interviewing architects and developing the
"long list" of possible contractors. With the help of your book, we'll break
ground and finish construction during the year 2000. You're at our side
every step of the way. Thanks for being there!
Wayne & Bonnie Clark
Houston TX story
Hello Alan & Denise,
I first want to congratulate you on your book "Your New House", what a great
book. Although we took every precaution we could we still were ripped off.
Could you please give me some advice.
We were building a home with Ashton Woods in a subdivision outside of
Houston Texas, Cinco Ranch. We signed a contract on a home and a lot that
we paid a premium because the first lot they sold us, the house did not fit.
After two months with dealing with them on specifications of the home,
picking out accessories and such, we were ready to start on the construction
of the home. But at the pre-construction meeting they showed us a new
footprint of the home which was different from what we had agreed upon on
the signing of the contract. We first had the footprint drawn on the
property a month earlier when we signed the contract. The footprint we
received from them showed the house laid out perfectly on the lot without
any utility easement. In the second footprint they showed an 20 feet utility
easement running down the left side the home. We were, to put it kindly,
surprised. First we didn't know the utility easement was there and second it
left the property with little or no backyard. We told the salesman that our
whole intention about getting a bigger lot is to be able to put a pool in.
To our surprise, the salesman also said that he had no idea we were putting
or planning to put a pool in.
To make the story short the lied to us and we feel very uncomfortable
building a home with them after compounded lies. Now they are saying they
are not giving us back or $2000.00 deposit. What can we do to get it back.
Several people have told me what they did is deceptive trade practice
because the did not disclose about the utility easement. Do you have any
advice or do you know where can I turn.
Ashton Woods is a very difficult home builder to deal with. I can't even
believe they will risk their reputation because of an unhappy customer. I
know the bright side is that at least I'm not buying a house from them but I
want my money back, $2,000 is a lot of money.
Please Help
Joe Tran
Mortgage broker responds
I just bought your new book and found it overall to be a very good book
informative but not information overload. HOWEVER, there is a gross
inaccuracy and error in your financing section regarding mortgage brokers.
1. Brokers are required to disclose more not less information than banks
2. Brokers now originate 50-70% of all mortgages.
3. How do you think banks get paid? They also get a Yield Spread Premium
and servicing rights. The difference is that they are not required to
disclose any of this to the consumer. (In fact the nations #3 bank, Bank One
does not keep any of the mortgages for servicing.)
4. In terms of licensing. I believe brokers are required to be licensed in 40
states.
5. It sounds like you read the propaganda sheet from HUD where Mr. Cuomo has
used the same inaccuracies to promote his own political agenda.
6. Bankers are under absolutely NO obligation to report any profit to the
consumer!
7. The competition from brokers is what has helped keep right at the lowest
in years and the percentage of home ownership at its highest in years.
8. One last point on compensation, brokers receive compensation for their
services just like independent insurance agents and travel agents. No one
ever asks to see how much they are making on each deal and we all know they are because no one works for free.
In the future I would think you would interview someone from the agency you are bashing especially since it was obvious that you have very little
knowledge or understanding of the mortgage industry be it brokers or bankers
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Sun, 11 Jul 1999 10:13:57 -0400
Lot premiums?
Alan,
My husband and I found Your New House to be a valuable resource as we sort through the millions of items that require consideration when building a house. We're hoping you can take a moment to email us concerning our
question:
We're reserving a lot this weekend in a development of a semi-custom
production builder, and have a question concerning lot premiums. In lookingat the street layout of the twenty-some homes going in, some of the sitesare labeled "BP," or base price (of home); but most of the lots have"premiums" on them. There are a couple of lots that are a bit wider than the rest, so I suppose the builder feels justified in jacking up the price, but the majority of the lots are exactly the same size . . . and they have different premiums on them, ranging from $3,000 up to $10,000.
We've picked up from the builder's sales rep that these "premiums" are
somewhat negotiable. (It almost seems like, if you're dumb enough not to
question it, they'll charge you for it.)
Of course, the lot we really like has an $8,000 premium on it; after adding
some square footage and options to the house, we really can't afford another eight grand.
Do you have any negotiating tactics/suggestions to assist us in getting the
premium waived? Have you ever heard of production builders doing this? Your expert advise is greatly appreciated! Please email me at
shepherd@irathomas.com <mailto:shepherd@irathomas.com> . I look forward to hearing from you,
Regards,
Kris Shepherd
News release
Contact: Kathleen Chiras
NAEBA Headquarters
303-670-4304, 800-986-2322
e-mail: NAEBAHQ@naeba.org
web site: www.naeba.org
NAEBA Admonishes NAR for Trying to Supersede Common Law of Agency
EVERGREEN, CO (June 11, 1999) nThe National Association of Realtors
(NAR) has launched a nationwide campaign aimed at eliminating the
protections afforded in real estate transactions by the common law of
agency. Instead, the NAR wants the common law replaced with a deceptive
provision called designated agency.
This accusation was made today by the National Association of
Exclusive Buyer Agents (NAEBA).
NAEBA is a nationwide alliance of real estate professionals who
limit their practices to providing agency representation to buyers of
real property. While most NAEBA members also are NAR constituents they
do not take property listings and never represent sellers.
The National Association of Realtors is the largest real estate
trade association in the country with membership of over 700,000.
Designated agency enables one real estate firm to simultaneously
represent both sides in a real estate transaction. This ensures the
largest possible commission for the firm, but does not delivery on its
promise of representation to either buyer or seller. NAEBA contends
that the only party to benefit from such an arrangement is the
brokerage. Designated agency is analogous to one law firm attempting to
represent both the defendant and the plaintiff in the same lawsuit.
"State by state, the NAR is sending its powerful lobby into the
legislatures with a single goal of tearing down a precious pillar of our
legal culture and replacing it with designated agency," NAEBA president
Richard Machado charges.
Due to the efforts of NAEBA, state organizations of exclusive
buyer agents (EBAs), and consumer advocates including Ralph Nader,
Connecticut lawmakers put aside a designated agency bill in the current
session. Earlier, Massachusetts also refused to legalize the practice.
"The NAR, apparently undaunted by its failures in these two
states, is intensifying efforts nationwide to steal effective; proven
law from the public through deceptive lobbying," adds Machado. "To
date, NAR lobbyists have been so successful at undermining the common
law of agency in this manner that the association boldly made continuing
such efforts a national priority during its recent convention in
Washington, DC."
"The rights of Americans to representation without conflict of
interest, is something the case law of our country assures us," Machado
continues. "However, the National Association of Realtors apparently
has decided that this public right -- supported by current law -- is
inconvenient and contrary to the profit motive of its members. So, to
dismantle it, the NAR promotes deceptive laws written in a way that
prevents busy legislators from understanding the association's true
purpose."
Meanwhile, Ralph Nader observes that, although the real estate
industry promotes designated agency as a means of increasing consumer
choice, it actually limits the publics access to fair representation in
real estate transactions.
"Promoting designated agency," Nader says, "is a blatant attempt
by the real estate industry to dilute its obligations and loyalty to
consumers. It primarily serves the interests of the industry and places
consumers at the mercy of real estate licensees."
"Designated agency inevitably creates conflict of interest that
harms consumers," adds Stephen Brobeck of the Consumer Federation of
America. "A real estate firm can not adequately represent the interests
of both sellers and buyers in a transaction. Usually, it is the buyer's
interests that are compromised," he points out.
Noted Suffolk University Law School professor, Dr. Charles
Rounds asserts that legislatures should be buttressing common law
protections, not undermining them.
"When it comes to the common law duty of undivided loyalty, why
should real estate agents be singled out and held to a lower standard
that other agents, lawyers, for example. Legislatures should be
discouraging conflicts of interest, not sanctioning them," Rounds
explains.
"Legislators in states where the common law of agency is serving
the public interest, beware. The NAR is coming," NAEBA president
Machado warns. "We urge you to stand up for your constituents and to
ignore the influence that the NAR -- the most powerful lobby in America
-- wields.
"Designated agency is wrong for American real estate consumers.
It eliminates basic and necessary protections for what is the largest
financial transaction most Americans will make in a lifetime. At the
same time, it reduces the liability of real estate professionals. I
would call that unenlightened self-interest of the worst kind.
"We ask legislators across the country to give this matter
serious thought," Machado continues. "Ask yourselves if you should let
the country's laws be stolen out from under a nation that has sacrificed
to establish them for the good and well being of all our people. It is
really that simple.
"The principles inherent in common agency law are a value of
great significance. Erosion of them adversely effects the quality of
our society," concludes the NAEBA president.
END
Kathleen Chiras
Association Manager, NAEBA
7652 Gartner Rd. Ste. 500
Evergreen, CO 80439
NAEBAHQ@naeba.org
www.naeba.org
800-986-2322
Meet me in Washington DC, NAEBA Mid-Year Conference September 9-11, 1999!
Cylinder tests
I have the first version of your book and have been using it as a guide
to the building of my home which is now underway. I don't know if this
is covered in your second edition but I am having "cylinder tests" done
on the concrete that was poured for the footings and foundations. My
engineer takes two cylinders from every concrete truck as the concrete
is being poured. The first cylinder is sent to a lab and is "cracked"
after seven days. The lab applies pressure to the cylinder to see at
what psi it will destruct. Since concrete gets stronger as it cures, you
may not reach the nominal value after seven days. In my case it was high
enough that the engineer felt it would meet or exceed its nominal value
as it cured. If we were not sure, we could then send the second cylinder
to the lab after 28 days for another test. At $60 per test (plus
engineer's time) I felt this was a cheap price to make sure the concrete
was up to snuff. For me, the only sure way to make sure the pour was
good is to test the stuff coming out of the truck. For peace of mind
some of your other readers may be interested in this test.
Frank Varga
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Sun, 30 May 1999 17:07:29 -0400
News release
Ralph Nader Says Connecticut Designated Agency Bill Is Anti-Consumer
EVERGREEN, CO (May 18, 1999) -- Ralph Nader says Connecticut House Bill
6981 is entirely anti-consumer. The state senate there is scheduled to
vote Wednesday on the bill that, if passed, would allow designated
agency in Connecticut real estate transactions.
Designated agency enables one real estate firm to simultaneously
represent both sides in a real estate transaction. This ensures the
largest possible commission for the firm, but does not deliver on its
promise to buyer or seller. It is analogous to one law firm attempting
to represent both the defendant and the plaintiff in the same lawsuit.
Nader observes that HB 6981 would allow a Connecticut real estate
agent to operate without supervision or guidance from the company's
broker of record. It is the broker who theoretically possesses the
firm’s expertise, competence and experience for which the consumer is
paying.
In a letter to Connecticut lawmakers Nader says: "Although the real
estate industry promotes this bill as increasing consumer choice, this
megabroker bill actually will limit consumers' access to fair
representation in real estate transactions. It primarily serves only
the interests of the industry and places consumers at the mercy of real
estate licensees"
Pointing out that the bill legalizes an inherent conflict of
interest; Nader emphasizes that no amount of amending the bill can
produce any benefit. It is, he adds, "a blatant attempt by the real
estate industry to dilute its obligations and loyalty to consumers while
still charging the same commissions."
"The proposed legislation," Nader opines, "is contrary to the
interests of the buying and selling public. Rather than repeal
provisions of the existing statute which sanction dual agency, this
legislation will result in more firmly entrenching anti-consumer,
deceptive practices.
"The real estate industry has been attempting to circumvent the
responsibility to the public for fair, ethical and decent business
practices since the Federal Trade Commission (FTC) issued its warning
nearly 14 years ago," Naderis letter continues.
In a 1983 study, the FTC concluded that changes in real estate
practice were necessary to avoid harm to consumers. Instead of
restructuring the industry to conform to the law, however, the industry
response has been to systematically change the law -- state-by-state --
to support harmful anti-consumer tactics in the real estate industry.
"Consumers have overwhelmingly and wisely stated in various surveys
their desire to have their individual interests placed above all others
when represented in a real estate transaction. This Bill places the
industry's interests above all others, greatly harming consumers in the
purchase of their homes -- the largest financial investment for most
Americans. I urge you to listen to your constituents," Nader concludes.
The entire text of Naderis letter can be viewed at
www.agencylaw.com.
Earlier, the National Association of Exclusive Buyer Agents also
called for defeat of the bill. NAEBA executive director Kathleen Chiras
says it embodies an extreme conflict of interest has been consistently
outlawed throughout the body of agency case law.
"HB6981 sweeps away public protection, effectively converting what
was yesterday fraud, to the status of law," she emphasizes.
NAEBA members nationwide are dedicated to promoting the rights of
and representing the best interests of the buyer in every real estate
transaction. Founded in 1995 to educate the public about exclusive
buyer agency, NAEBA is an independent alliance of exclusive buyer agents
throughout North America whose real estate companies do not take seller
property listings and who work to preserve the right of consumers to be
fully represented when purchasing real estate.
-end-
No closing date
I just checked out your book "Your New House", it had a lot of great information, I wish I would have read it before I started building my home.
I am having a house built by Tilson Homes. I signed a contract in May of 1998 and told it would take 3 1/2 - 4 months but it is still not complete one year later. There is no closing date in our contract. I thought Tilson would want to complete the house quickly so that they get their money, but I was obviously wrong. At least two months ago my foreman said that we could lock in at an interest rate with our mortgage company and a month or so later we did. We kept the foreman informed about the date this rate expires and requested that everything be complete. He assured us that it would. Now it is too late, we have lost our set interest rate and the rates have gone up. I contacted the VP of construction at Tilson and he said there was nothing they could do except try to finish up the house as soon as possible. This does not seem fair to me. Can Tilson take as long as they wish to complete my home and tell me to go ahead and lock in at rate and then not finish in time? If you have any advise, please respond.
Cynthia Czinder
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Thu, 13 May 1999 12:05:28 -0400
Our reply
Cynthia
Thanks for reading our book, YOUR NEW HOUSE. Glad you found it useful!
Well, good question. In short, it depends on what your contract says---if there is no completion date or penalty clause, you may be out of luck. To be honest, I would contact an attorney (preferably a real estate attorney) and get an opinion as to whether the builder has breached the contract for failing to finish the home in a timely manner. Certain state laws may apply to your situation.
Let us know what happens!
alan & denise
authors, YOUR NEW HOUSE
Should I get an appraisal..?
First of all let me say I think your book is a great, its an excellent resource
for the home buyer. My question is regarding Spec houses. We have great
interest in a "luxury" spec house in a new home community in the northern
suburbs of Atlanta, however based on the "crux" of your book I surmise you would not recommend buying a Spec house. If we were to consider making this purchase what are the best steps to take to assure ourselves quality house and smooth home buying experience.
It is my thought to get an appraisal on the house to justify the list price, get
an inspector to inspect as much of the house as possible, (which I realize is
quite limited, because the house is virtually finished except for cosmetic
changes), and have a RE attorney look over any subsequent contract. We've
already called the builder's referrals, and checked for complaints with the BBB,
is there any other action you would recommend before we commit to this house.
I really respect the fact that you offer to accept e-mails, I certainly
appreciate your time.
Sincerely,
Brian Olzinski
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Wed, 12 May 1999 14:44:38 -0400
Our reply
Brian
Thanks for reading our book, YOUR NEW HOUSE. Glad you liked it!
Yes, we aren't big fans of spec houses since they entail more risk (you can't see the construction, etc). Of course, the big convenience is that they are finished and time is money, of course.
It sounds like you're doing everything we'd suggest---I'd also recommend checking out the permit/building inspection records at the county. Check to see if there were any corrections, if the home has a certificate of occupancy, etc. Talk to the municipal inspector is you have any questions about what you see.
Best of luck,
alan & denise
authors, YOUR NEW HOUSE
News release
Contact: Kathleen Chiras
NAEBA Headquarters
(303) 670-4304, (800) 986-2322
e-mail: NAEBAHQ@naeba.org
NAEBA Says Proposed Connecticut Designated Agency Bill Will Harm
Consumers
EVERGREEN, CO (May 9, 1999) - The National Association of Exclusive
Buyer Agents (NAEBA) has issued an alert to consumers in Connecticut.
The state senate there will vote Wednesday on HB6981, a bill to allow
designated agency in real estate transactions. NAEBA points out that
this practice harms buyers and sellers by distancing from their right to
full representation.
Designated agency occurs when a single real estate office promises both
buyer and seller in the same transaction that the firm will fully
represent both sides at the same time. For example, the seller is
promised that the firm will negotiate for the highest price.
Simultaneously, the firm pledges to the buyer that it will negotiate on
his behalf for the lowest price.
"This extreme conflict of interest has been consistently outlawed
throughout the body of agency case law," says NAEBA Executive Director
Kathleen Chiras. "HB6981 sweeps this public protection away, and
effectively converts what yesterday was fraud, to the status of law."
The proposed law, written by lobbyists representing the interests of
large real estate companies, brilliantly disguises its real purpose.
According to NAEBA, the Massachusetts legislature also was nearly
tricked into passing a similar designated agency bill. Consumer
advocates in that state were able to reveal what the bill was really
about in time, and the Massachusetts legislature promptly killed it.
If passed in Connecticut, HB6891 would supercede the state's real
estate licensing law. It would do so by establishing irreconcilable
conflict with present real estate code and by promoting terminology that
misrepresents the proposed law's true intent to the public.
In addition NAEBA points out that the proposed legislation is
inconsistent with the common law of agency, which should be the guide
when real estate legislation is considered.
"It erodes the protections provided by existing agency law and
encourages misrepresentation of services. Common law has protected the
consumer well for hundreds of years in the legal profession and other
fiduciary situations. It should be considered as the guide for real
estate as well," emphasizes Chiras.
NAEBA has sent letters to all 36 Connecticut state senators urging them
to vote against the bill because of its anti-consumer nature. The
letters ask the senators to contemplate the answers to two key
questions:
-- How is it possible for one real estate office to promise to represent
the opposing interests of two clients in the same transaction without
engendering a conflict of interest?
-- Why should the legislature pass legislation that endangers the public
in this way solely to support the self-serving motives of large real
estate companies?
"It is up to the senate now," says John Herman, president of the
Connecticut Association of Exclusive Buyer Agents. "Some of our
lawmakers have been lead to believe that there is no opposition to
HB6891. That definitely is not the case. We also know some state
senators have grave concerns about it.
"Any senator who takes the time to understand bill will vote against
it," Herman adds. "And once state senators understand this bill for
what it really is, they will be angry that it was ever presented to
them. Although its purpose is not readily apparent, this legislation
is designed to do nothing more than increase the market share of large
real estate companies at the expense of consumers. Purely and simple,
this is bad law that must be defeated," Herman concludes.
NAEBA members nationwide are dedicated to promoting the rights of and
representing the best interests of the buyer in every real estate
transaction. Founded in 1995 to educate the public about exclusive
buyer agency, NAEBA is an independent alliance of exclusive buyer agents
throughout North America whose real estate companies do not take seller
property listings and who work to preserve the right of consumers to be
fully represented when purchasing real estate.
end
Mover’s Advantage program
Alan and Denise,
Thanks very much for a prompt response to our question about the Mover's
Advantage program. We took your advice and dug deeper into finding a
Buyer's Broker, we called the phone number listed in "Your New House"
for the NAEBA and went to their web site. There we found a database
that could search for Buyer's agents in Massachusetts. We found there
were 56 in the state of Massachusetts (a relatively high number for the
New England states) but only one of them serviced the town we are
interested in.
We met our agent this weekend and we feel more relaxed to have someone
on our side. We went to two open houses at the development site with
her and while we were standing in the basement daydreaming, she
immediately zoned in on some questionable construction, as we walked
through the rest of the house (which is still uncompleted at this point)
she pointed out several other flaws. We really appreciated this and are
thankful we bought your book and learned that Buyer's brokers even
exist. Our Mover's Advantage program never told us, they herded us like
cattle, to real estate agents that worked for the seller and we would
probably have never questioned the procedure had we not been informed by
your book.
Thanks again for a terrific book! We will keep you posted on our
progress.
Joy
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Mon, 03 May 1999 10:15:00 -0400
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