Posted: November 17, 1997
First let me say, "Kudos!" for Your New House.Even though much of the information you impart scares me silly about building a new home, this book is a must read for anyone considering a new home purchase. My question for you concerns master planned communities. These communities are very popular here in Houston and we are considering several in our area as the future site of our new home. Do these kinds of communities offer any better chances of having a quality home built than a "non-master planned" community? Most of the builders we've met in these communities (Trendmaker, Perry, Village Builders, et al) have held themselves out as "semi-custom" home builders, but they still only offer a limited number of home designs. These communities also have "custom" builders but these builders are only interested in building homes over $300,000 which is about $50,000 more than I'm comfortable with paying. I begin to wonder if this is the way to go. I would appreciate any information you could give me about these sorts of communities. Thanks, David Board
14 Nov 1997 19:11:24 -0500
David
Hi! Thanks for reading our book, YOUR NEW HOUSE. We didn't mean to overly scare you, but forewarned is forearmed. :)
Anyway, that is a good question. I think the short answer is no. Master planned communities like you mention in Houston DO offer many advantages: shopping, parks, schools, etc. And the developer does usually have the money to print glossy brochures that tout the "quality" of their hand-picked approved builders.
But let's get real. The quality of your home (or any home built anywhere) depends entirely on the builder (and, more accurately, their crews) at that specific moment in time. You'd want to do the same thorough checking and evaluation for a builder in master planned community that you would if you were building out in the middle of nowhere (say, Katy).
I think there is an false sense of security in such communities. Developers will go on and on how the "carefully screen" each builder to make sure they are the best of the best. In reality, there's evidence builders get chosen more for their political skills than building talent. Or they're someone's drinking buddy.
And I'd check out that master planned community's developer too. Make sure THEY are in good financial shape. There are many tales of "promises broken" by developers whose subdivision maps included schools, parks and shopping that never materialized. Better yet, buy into one of those communities after some of those important amentities are already built. That way you know what you're getting.
Hello,
My wife and I have just started the home building process. We have bought your book 'Your New House', which has prompted this e-mail. I'm looking for references that offer diagrams, schematics & text that explore the different levels of building & material quality. Examples of questions I'm looking for answers to are;
A- What are the differences, pros, cons, of LVL vice solid lumber?
B- What's the best flooring construction?
C- What are differences in window construction and who are the preferred manufactures?
As you can see my questions span a wide spectrum. Finding an easy to understand yet thoruogh references will help ensure our choices and decissions are being made based logic not emotion or propaganda. We did purchase 'Modern Carpentry' to aid our research.
Having partially read your book to date, we will indeed form a 'Scissor Team' to aid in our efforts.
As a note, we purchased your book at Borders in Wilmington, DE. It was the only reference source of its type we could find. I only wish it had illustraded examples of quality construction methods and 'bills of material', then it would be a one stop shop.
We appreciate your book and any recommendations you may have,
Chris & Elizabeth Hinckley
Chris
Hi! Thanks for reading our book, YOUR NEW HOUSE! We apprecited your comments and suggesitons.
Yes, we've avoided some of that technical detail in order to keep our book under 1000 pages. BUT, a good source you might want to check out is the "Homebuilder's Press" 800-223-2665. They have a couple dozen of publications aimed at builders. Several of these have rather technical specs that might be what you're looking for. Call them and ask for a catalog.
best wishes,
alan & Denise fields
authors, YOUR NEW HOUSE
I was reading my morning paper and I came across this "Letter to the Editor" that I thought you might enjoy on the "joys" of building your own house. . . Learn to Relax When we decided to build a new home, I heard a lot from people who had been through the process. I enjoyed designing our home, and making decisions about what we wanted. What I haven't enjoyed was working with contractors. I have suggestions for others contemplating building; 1) Study up on the law. You must have a very thorough understanding of bids and contracts. Heaven forbid that you have a verbal contract. A bid is just that. Once you have the bid, everything you really wanted will cost more. 2) There is a different concept of time. When someone says they will be there in two-three weeks, two weeks will pass and so will three. When a date is scheduled, you will make arrangements to be there and no one will show up. 3) Never pay money up front. Don't even make a partial payment up front. 4) Nobody writes anything down. Contractors have superhuman memories. Even though they may have ten jobs going at once, and be working on bids for ten more, they remember everything you say you want done. When things don't turn out as you discussed, see number five or number six. 5) It's somebody else's fault. Contractors never make mistakes. There is always somewhere else to place the blame. The best scapegoats are other contractors or the weather. 6) We don't do it that way. Just because this is your dream house and you are going to live in it, that doesn't matter. Contractors will do it their way. 7) Learn to make phone calls at 5:30AM. By 6:30, workers will be on the way to the job and they work long hours. 8) Go to the job site. Once a day will not be enough, though. You may go out in the morning only to find something has been done wrong by evening. 9) If it can go wrong, it will. I have dealt with litle things like walls in the wrong place, a kitchen island that had to be moved so the refrigerator door could open, and water pouring in an unsealed window onto a hardwood floor. I have dealt with big things like the death of a contractor the week before he was to come. 10) Learn to relax. It's the only way you will avoid a nervous breakdown Jeanne Mease Denmark, WI Thought you would enjoy it. David D.
Hi! I have just finished reading your book and I could barely put it down! Great book! I feel really empowered by all the info you've presented in it! We are planning on buying our first house. It will be a production house, in all likelihood. I wonder if you could help us out with 3 questions - 1. Someone suggested to us that buying the model house in a production development might be a good deal. The plus side - it's already decorated, it usually has all the upgrades/options in, etc. Do you think this might be agood idea or not? Any hidden traps - being a model house they'd have built it quickly - possibility of careless construction , poor foundations, etc? 2. Any opinions on laminate flooring (e.g. Pergo) - like having that instead of carpeting? (hardwood look-alike) 3. On the blurb on the back of your book, there's a line that says - "4. The Truth About "Production Homes" and how three simple steps can save you from buying a lemon." What three steps are being referred to -and what pages/chapter are they in? TIA, Alyn Jante Greater Philly Area, PA ----------------------- Headers -------------------------------- Date: Fri, 10 Oct 1997 12:35:33 -0400
Alyn
Hi! Thanks for reading our book, YOUR NEW HOUSE. We appreciate your kind words about our book--and wish you the best of luck on your new home purchase.
To answer your questions:
1. We're not sure the builder's model would be any better than any other home in the development. Sure, they try to put their best foot forward with a model (and your points on landscaping and options are important pluses)--but that doesn't mean they didn't cut some corners to get it slapped up quickly. Our advice would be to have the home thoroughly inspected (as you would any home).
2. We think it's a toss-up between a high-quality laminate and carpeting--more of a personal preference. I'd make sure the laminate has a good warranty in case something goes wrong, however.
3. The tips on avoiding buying a lemon from a production builder are on page 152-3. Actually, there are four tips--a bonus. No extra charge. :)
best wishes,
alan & denise fields
authors, YOUR NEW HOUSE
You may want to use the Home & Apartment Builders Association as a resource for your page and your show/ books. The Dallas Associatin can be found at http://www.dallasbuilders.com or you can call Bob Morris at 214-631-4840. He hosted a radio show on a local station for a year. If we as architects can be of help let me know. -- Scott B. Roberts Creative Architects & Planners Garland, Texas scottr@dhc.net http://www.dhc.net/~scottr ----------------------- Headers -------------------------------- Received: from mrin54.mail.aol.com (mrin54.mx.aol.com [198.81.19.164]) Date: Thu, 02 Oct 1997 00:00:11 -0500
Hi, My fiancee and I are in the process of having a custom house built. My brother gave me a copy of Your New House, and we have been using it a great deal. So far, we are just to the stage of selecting a builder. We have narrowed our initial list of five down to the final two. My question is: One of the builders has offered us the option of either building our house for a fixed price, or on a "cost plus basis". I realize this is kind of like going to Las Vegas, the price could come in above or below the fixed cost estimate. I was wondering if you have any thoughts on this option. I should add that I work for the local electric company, and so I have the luxuary of knowing employees who deal with builders every day. We started our hunt for a builder by talking to a fellow employee who works in our energy conservation department, performing heating, cooling, and lighting analysis for builders and home owners. He helped us form our initial list of five builders to interview, and we feel confident that the two builders we are considering would be "honest" in building for us on a cost plus basis. Any information you can supply will be greatly appreciated! Thanks for the help. ----------------------- Headers -------------------------------- From: "Jeff Welsh" <jwelsh@les.lincoln.ne.us> To: <adfields@aol.com> Subject: Cost Plus Building Date: Tue, 30 Sep 1997 10:34:34 -0500
Hi!
Thanks for reading our book, YOUR NEW HOUSE. We appreciated your kind words about our book.
Well, that's a good question. To be honest, we don't like cost-plus, even if you're dealing with an honest builder. Simply put, there are too many ways this can go sour. Also: you might need a degree in cost accounting to figure out whether you've been billed correctly for all the myriad of "costs" that go into a home. And what if the costs soar way above what you want to pay, even for "unforeseen" (non-builder) related reasons such as weather, etc? Then what--do you get a half-built house?
Fixed bid prices are generally better. Yes, the builder will add in some "padding" to account for unforeseen circumstances BUT the financial monkey is on HIS back (not yours) if things go wrong.
That said, there are some very remote areas of the country were the only way to get a house built is cost-plus. In that case, good luck and god speed!
alan & denise fields
authors, YOUR NEW HOUSE
I picked up your book, YOUR NEW HOUSE, at the library today (along with a few others) and want to thank you from the bottom of my heart for writing it!! I was laughing out loud in the first two pages, because you could have been describing me. (I'm also a writer--though of novels--and went to the library convinced that the answers MUST be in a book somewhere.) I lost a whole writing day reading your book, and feel like I've had a thorough education. I'll be looking for this book in the bookstore because it's one I want to KEEP, plus you definitely deserve the royalties! <g> Besides, that way I can use a highlighter and write in the margins. Seriously, this book has answered questions I hadn't even thought to ask yet. We've found a lot we love (owned by a builder, unfortunately, which means we don't get to pick and choose there) and are very seriously on the verge of making an offer on the lot/house (that he'd build to our specifications). I hate feeling ignorant about anything (especially anything this important) and you've gone a long way toward curing that ignorance. Thank you!!!
--Brenda Hiatt Barber :)
Thanks for giving us this terrific book! I am embarking on my 2 year plan to research land for building and to develop ideas for materials and design of a new home while we save money for the project. I live just outside Stowe in northern Vermont.
I recently attended a mixer at a "showcase home" hosted by the architectural firm that designed it. I spoke with the architect and discovered that he was also the general contractor for the job! Further questioning revealed that his academic training is in architecture but that he had developed experience in contracting and was an expert carpenter as well. The house was a strong testament to his abilities!
What do you think of this? I'm aware that we should avoid "builder - designers" but what about "designer - builders"? If I were to hire him I'd certainly hire an independent consultant for periodic inspections. He's willing to provide several references (one was independently at the mixer and raved about her house which I'd seen before and admired). Architecture fees take into account his dual role and seem reasonable (5% of the ~ $350,000 house we were visiting). Building fees vary but can be based on square footage, etc.
My main concern is the relative difficulty in bidding out the work - do you think other builders could bid on the project if I developed a design and materials list via 3D Home Architect? This is assuming I can't hire this person as an architect first and builder only if his bid/reputation are the best.
Thanks for your input! I can be reached at: petdoc@pwshift.com
Scott Fausel
Scott
Hi! Thanks for reading our book, YOUR NEW HOUSE. We appreciated your kind words.
Well, that's a good question. Basically, we have less bias against designer-builders than the other way around. If they have the design education AND experience, then an architect acting as a general contractor is fine . . . IF (and that's a big IF) they have a solid track record for several years doing the building end too. Of course, we'd recommend that indepedent inspector for any project, built by a builder or architect.
I'm sure many contractors would have no problem bidding on a project you designed yourself--given that you thoroughly spec'd out all the materials, etc. YET, you might want to have a contractor look over the plans first to make sure you didn't leave anything out before bidding.
Does that help?
alan & denise fields
authors, YOUR NEW HOUSE
I am in the middle of your excellent book now and cannot thank you enough for the wealth of informaiton you have provided to the uninitiated. But because of my particular situation some of my questions do not seem to be addressed (at least thus far). I am about to buy a wildly expensive lot at the beach. I have used a buyers broker, but the land grab atmosphere at the beach made it impossible to negotiate with the seller, and htus I cannot really tell if the agent is really any good and if she has my best interest as a first priority because she represents a lot of sellers and developers as well as buyers. She is one of a couple agents who seem to own the real estate business at the high end at the beach. It is a very small club. My question is how I can make an independent assessment of the three builders she is suggesting (one is getting a real hard sell). Also, how can I find an architect and or a construction manager who knows how to deal with residential projects at the beach? The builders there all do design/build and seem to have very specific knowledge about oceanfront and beach issues (this is oceanfront property). Most of the houses in the upper brackets there seem to have been built by only a couple of builders. I would not think it to be a good bet to use an architect, builder, or project manager who doesn't do oceanfront work as a major part of their practice. So, choices are limited and everyone seems to have vested interests inconsistent with mine and it seems all very incestuous. Any suggestions? Thanks Ellen Kirsh
I've been reading your book off and on for the past year or so while we try to finish up business on a home we had built, where the builders went out of business. We had what they call a 'one time closing' and the loan officer from the bank sent us papers to fill out that have $2500.00 in closing costs. If we closed last year, I'm wondering why we're being charged closing costs again. For example, underwriting fees, document prep fees, title insurance fees, a $350.00 application fee. Again paying 4-6 months of escrow in advance which we paid on the 'one time closing' last year. Does this make sense? Does this sound proper to you? It wasn't covered in your book and the back page said that questions could be sent. Please let me know ANYTHING that you have on this matter or give me a reference. Your book was great and very helpful. Thanks, Helen Littler, 10100 Holland Rd. Taylor, Mi 48l80. 313 946 6452. hlittler@gatecom.com ----------------------- Headers -------------------------------- From hlittler@gatecoms.gatecom.com Fri Aug 29 20:49:18 1997
Dear Alan and Denise Fields, We bought your book a couple of years ago and apparently, didn't read it very well. In June of 1996, when I was seven months pregnant with our second child, we signed a contract with a major builder in our area, Taylor Building Corporation of America, to build a home for us. Now, 14 months later, our daughter is walking and talking and still sharing a bedroom with her 4 year old brother. Our house is still not completed. If you call and complain, they will say something like they said last week, "Your home should definitely be done by _______ date." And then they won't come out to work on it. Our home is about 99% finished. The only things that really need to be done, besides correcting a few minor things they've done poorly, are to install the dishwasher, range and range hood, electrical switches and outlets, the meter box and the doorknobs. The doorknobs have been sitting in our master bathroom for about 3 months now. They say that they are having trouble with their electrician and that they can't get him to come back to work for them and, that the work can't be guaranteed by another electrician who comes to finish it for him because he can't see the wiring inside the walls, etc. We are at our wits end. We don't know who to turn to. There is not a date of completion on our contract but isn't there some sort of clause in the law that would make a provision for a reasonable length of time for completion. Is it time to contact an attorney (or past time) and should s/he be someone who handles real estate. Please advise us if you can. Thank you. Sincerely, Dana and Deron Sorrell ----------------------- Headers --------------------------------
I recently read an article in Popular Science May 1997 that was talking about the Building america progam through the U.S. Dept of Energy. They spoke of some methods of making your home more energy efficient while only increasing minimally. Have you heard anything about this program and these methods. If so how would I find out more information about them.
Thanks, Ross Headley rossnjoy@aol.com
Hi - I am currently reading your book "Your New House" and so far I really like it. It's packed with a lot of great information. I found out about it through the San Jose Mercury News article in last Saturday's paper about new home construction and the pitfalls you can fall into. My wife and I have recently bought into a new community here in the San Jose, CA area called Campagna and we really have not done much homework about the builder, etc. We can still back out of the deal if we find anything alarming, but so far I have not had much luck finding any information on this particular builder. I was wondering if you have heard of them -- New Cities Development Group. They are building a set of homes in Almaden Valley, San Jose. The homes seem to be of good quality, but it is hard to tell. They have built other communities in and around the area and have apparently won various awards on those communities. One of which was the Old Almaden Winery community. I will definitely be using your advice to try to get an much information as I can about them, but any tips or info that you might have would also be appreciated... Regards, Rich Kapusta ----------------------- Headers --------------------------------
'I just finished reading your wonderfully written book entitled "Your New House." The information contained in the book nearly answered all my questions! However, the section (paragraph) on modular homes was a bit short. I know you discuss all different types of home building, i.e. designer, architect, etc.. but what about all the Modular Home companies that send me layouts that allow for some "customization"? Are these credible builders? Has any previous reader used them? These homes are built INSIDE a warehouse, so I cannot "check in" on the construction at my leisure. Can I trust these companies? Most are turn-key operators, so I "simply" choose a layout and they lay the foundation, build the home, finish the interior and I "simply" move in. It seems too easy, therefore I am nervous. Please help!! Thanks in advance. ----------------------- Headers -------------------------------- Received: from mrin83.mail.aol.com (mrin83.mail.aol.com [152.163.116.121]) by mrin80.mail.aol.com with SMTP; Wed, 23 Jul 1997 15:23:58 -0400 Received: from aries.wise.net (aries.wise.net [206.29.198.135])
I hope you can help me with a few questions we have regarding our house design: * Room size - One priority we have is 4 bedrooms (we have 3 children). In general, what do you see as adequate square footage for a child's bedroom, and a master bedroom? Although we have looked at model homes, the rooms are usually empty and it is tough to visualize what is enough. * Windows - Many home plans we look at are virtually windowless on the side which has the chimney and might be positioned generally toward the south. We live in Connecticut. Is this due to better energy efficiency? Won't it eliminate an opportunity for cross-ventilation? Can you help with these financial questions: * To raise cash for the down payment, I may need to use some money from my 401-k plan. When I take a loan from this account, I am required by the rules to pay it back in 3 years or less. Given that this technically is my own money, will the payments be considered long-term debt in the qualification equation? * Also in regard to raising cash - For good or for bad, I decided several years ago to set up a custodial account to save money for my kids future college expenses. Their ages are 8, 5 and 9 mo. This has worked out well for putting away money. Now however, I may need a small amount (a few thousand) of that to help fund the house. Given that this is money that would go toward "shelter" for the child, can I use some of the money? "Your New House" was an excellent book - very much enjoyed it. Peter Hayes Westbrook, CT phayesct@cshore.com ----------------------- Headers --------------------------------
Mr. and Mrs. Fields,
I purchased your book entitled "Your New House, Second
Edition" and found it to be very informative. I will be
getting married in a couple of months and then plan on
starting the home building process shortly after. Overall,
the book was a worth while reading experience for me, and I
would recommend it to a friend planning on building a new
house.
Now that I have established that I liked the book, I thought
you might like to hear some constructive criticism (if not,
stop reading now).
First, the book has FAR too many errors in it. I don't mean
content errors, just grammatical errors. It has lots of
sentences that don't make sense, no matter how may times you
read them. Maybe I'm not the typical reader, but I found
the errors very annoying When I read a sentence and it
doesn't make sense, I read it again, and again, until I
finally decide "nope, its not me, that sentence just doesn't
make any sense!" By this time, I've lost the reading
momentum I had and usually end up rereading the whole
paragraph to try to figure out what the sentence should have
said.
Just like a builder will soon take my hard-earned money and
be expected to deliver a quality product, you took my
hard-earned money for this book, and I expect a quality
product from you. My recommendation: Fire the editor(s)
who must have the IQ's of house plants (to steal a quote
from you).
The only other comment I have is that I would have enjoyed
the book more if there were not so much repetition in it.
After reading it, I feel that you could have made all of
your points and I could have learned just as much had the
book only been half as long but didn't repeat the same
points over and over. I realize that you are just trying to
get your opinions across clearly, but I found it annoying at
times, as if I was reading something that I already read.
Overall, good work on the book, and thanks for giving
readers the opportunity to comment. If, after building our
house, we have any good stories for you, we'll send them
along.
Sincerely,
Walt
----------------------- Headers --------------------------------
Thu Jul 17 13:44:34 1997
First I wish to thank you for taking the time to answer my question, and am currently enjoying your book. There is a newly "close to done" built house I am looking at purchasing. I went this route to hopefully reduce some of the house building headaches. The house is at a point where there only needs decisions on carpet, tile and other 'decorative" things and some minor exterior work needs to done and appliances installed/working. The situation: I don't know the history of the building process. There are NO gutters and downspouts on yet. It hasn't be final graded/filled. The basement is concrete block (I believe with mortar) and they used the black tarish stuff on the outside of foundation for waterproofing (I can see at places where it hasn't been graded against the house). The house is not located in a flood area and the land around the house 'looks' to be "somewhat" sloped away from the house (fairly flat area all around, was a farm field). The house has it walls/roof and siding on for at least 2 months. The spring was really wet, but the summer dry. Question: There are water marks (dark wet areas on the block) in the basement. I haven't seen standing water on the basement floor. Is this something I need to be concerned with? They said the block is still drying out. How long does it take for block to dry out in the basement when there is no air being filtered throughout. If it is a problem, what can they do (before I purchase) to fix it, or do I stay away from it? Another situation on this same house: At the bottom of the basement stairs, the water line(?) (a copper pipe that is coming up from the basement cement floor with some dohickey thing on top) and a small meter type mechanism is right at the bottom of the steps against the wall. I noted to them it was very poor planning, but they said they can move the meter thing. The water pipe from the floor thing they said can be run along the bottom of the basement floor and then elevated at a different point in the basement. That will probably be 6 ft away from the steps. I know there will be a pipe running on the floor, but that is OK for me. Question: This water pipe and meter mechanism thing, not being where it was planned will that cause a problem? Any water pressure situation? Any negative impacts? What are those two things anyway? Again how serious of a problem is this? Other miscellaneous questions on same house, if you have time. Question: Are the silent floor system from Macmillan good, should it be regular wood? Question: Opinion on Norandex windows? Again, thanks for your time. And I will most definitely recommend your book to others building a new home. Thank You, Debbie Longerich ----------------------- Headers --------------------------------
Debbie
Hi! Thanks for reading our book, YOUR NEW HOUSE. We appreciated your comments.
Yes, it is easier to buy an almost-done house, but you've pointed out one of the drawbacks--you don't know exactly what has happened during the construction. As a result, you're relying more on the builder's trackrecord to hope nothing is wrong with the home. I think your quesitons are smart; here are our thoughts:
1. The water mark. I'm not sure WHAT is causing that. I take it from your message that this mark is on the "inside" of the basement. Since there are no gutters/downspouts, it may be caused by water ponding near the foundation after a heavy rain (even though it has been a dry summer). But, you're right that it's strange it still hasn't dried yet. Our suggestion: have a professional inspector go over the whole house and focus on that issue.
2. Water pipe. This could be a problem if you plan to finish off the basement. I'd call a plumber and ask them about the logistics of running the pipe along the floor, as the builder has said is possible. Getting a second opinion on this is probably wise. Focus on whether there are any code problems with the pipe if it is moved.
3. Silient Floors is a good system. We haven't heard any comments on those windows.
Does that help?
best wishes,
alan & denise fields
authors, YOUR NEW HOUSE
Alan & Denise, Thank you for writing "Your New House". It shed an awful lot of light on a very dim subject for me. I am only in the very early stages of buying/building a new home, but I feel like I have a "secret weapon" - your book! I have pre-qualified for a loan and just had my first interveiw with a custom home builder today.I told the builder how much I wanted to spend(70-80K), but could not get a straight answer on what size house this would get me.He said he would have to see some rough floor plans before he could even give me a ballpark answer. This seemed fishy to me. Also, although I have pre-qualified, he insisted I give him details regarding my income, assets, and liabilities. Does he really have to have this information? After all, the mortgage co. or bank will be loaning me the money, not him. What do you think about all this? Just one more question: I would rather not use a production builder, but I only want to spend $70-80,000 on the house(the lot is going to cost me $40-50,000). I would like to get at least 1700SF. Am I wasting my time going to custom builders? Would I be better off just getting a production home? Sorry to bother you with these questions, but I know I can trust you guys(I'm finding it hard to trust anyone else).I would appriciate any help you could give me. Thank You, David Haar Orlando, FL. ----------------------- Headers -------------------------------- our reply
David
Thanks for reading our book, YOUR NEW HOUSE! We appreciated your kind words!
To answer your questions:
1. That's a classic dilemma---no builder wants to give you a price quote if he doesn't know what he's building. So I think that's a reasonable request (to see some rough floor plans). Now, that doesn't mean you have to hire an architect and commission drawings. You can simply go to the newsstand and buy one of those plan book's with home designs. That way you can give him a more concrete idea of where you're going. Later, you can bring in a design professional (or have the builder) draft more specifics.
2. NO! NEVER give the builder this information. You are completely right--the bank is loaning the money. The builder DOES NOT need to know your personal financial information. All he needs to know is that you have qualified for $XXX,XXX of a home. Have the bank send over a "lender letter" that says you are pre-qualified (or approved) for this money and that should be more than fine. Did the builder give any explanation why he needed this info? That's a big red flag, of course.
3. Don't give up your dream of a custom home--you don't have to settle for a production home. I don't think your budget is unrealstic. Yes, it takes more time and effort to go this route, but stay the course. Only when you find several builders tell you that X floor plan won't work with your "Z" budget should you consider the alternatives. It's too early to tell now!
best wishes,
alan & denise fields
authors, YOUR NEW HOUSE
Dear "Your New House" authors, I thought your book was great. For instance, I am always wary of the seemingly insignificant "mistakes" one can make that result in paying a real estate commission unneccesarily. Your book was great at pointing out many of these, as well as other "danger zones". Now, of course, you have to listen to my constructive criticisms. I have been researching building a new house for the last couple of years, and will probably start construction late this year. I am very interested in construction techniques, and would like to have seen more information on alternative construction techniques to the increasingly inconsistent quality of wood framing. Steel construction and concrete foam products (eg. "Polysteel") seem to hold great promise, if consumers accept them. I also am wary of the manufactured lumber products, like TJI joists. There is really no long term real world data on how well these things will hold up at 20, 30 or 50 years. My biggest concern, however, is fire safety, which of course, the manufacturers of these products never bring up. I once saw of comparison of the burn through time of a manufactured joist vs. a standard dimensional lumber joist--it was amazing! I forget the exact numbers, but it was something on the order of 2 1/2 minutes for a manufactured joist vs. 8 or 9 minutes for a standard joist--a huge difference if you are trying to escape from a burning house, or firemen are trying to reach you. Anyway, your book was a great value--will probably save its purchase price many times over for the average home buyer. Andy Fleming Indianapolis, IN Return e-mail to this address or to andyfleming@compuserve.com ----------------------- Headers -------------------------------- Sun Jul 13 08:24:17 1997
Purchased your book last week and it's a real eye-opener. W'e're "older" first-time buyers (early 30s) and your book convinced us that now is probably not the time to deal with building our "dream" home, although we can afford about $300,000. But in the Ann Arbor, MI, area, that's not really a superb home.
Anyway, to the point.
A few months ago, we signed an agreement with a real estate agent to serve as our buyer broker -- although she's commonly a seller's agent. She showed us some properties one day, and we saw a spec house we liked.
We'd didn't think we needed to pay full price (first horror to agents). In the course of deciding what to offer, she took great pains to tell us that we'd better offer close to the asking price because "All I know is if I were listing that house, I'd slap a price on it that's $10,000 more than he (the builder) is asking and I'd sell it in a week." She also cautioned with this advice: "All the houses I sell are sold at asking price or one or two percent below."
Anyway, we made an offer just a few thousand below the asking price of $263,000. We asked for $3,700 from the seller at closing, and asked for him to pay to seed the lawn (about $2,500 by an estimate). The seller counters that he'll accept it all except for paying for the lawn. We told our agent that we had to have the lawn. Instead of going back to the seller with this "counter," she told us, "Well, I'll just tell him you can't afford the house." That was the extent of it. Needless to say, I called to "fire" her the next day.
I don't believe she was representing our interests in this matter. Isn't her job as the buyer broker to secure the best price for us, the buyer. I believe her motivation lay primarily with seeing the house sell for full price, regardless of its true market value.
What do you think of how she handled this situation? Everyone I've asked who's bought a house was appalled. Is there somewhere we can lodge a complaint about this woman? I don't believe her actions were ethical and we resented her bullying pressure to stick with the deal the seller wanted by insinuating that we couldn't afford the house, rather than simply going back to the seller and holding firm to our first offer, which we believe the seller would indeed have accepted -- after all, we were only about $2,500 apart on a $260,000 home. Moreover, the builder had not yet listed the house, so the only commission, at that point, would have been that paid to our so-called agent.
As an aside, after nearly four months, the house still hasn't sold, and the seller now has an agent, who called us yesterday to find out if we were still interested in the house. He said he'd seen the woman that represented us the first time around and "mentioned" our names. She told him that if we ended up buying the house, she expected her commission. This is after deplorable representation and being fired. Unbelievable.
Thanks for the time -- and for an outstanding, no-B.S. book.
I am learning so much from your book. page 107 "Plan Books" - "make sure you get a money-back guarantee". None of the ones I have will allow returns, do you know any plan publishers that do allow returns? I hate to put VISA in the middle of anything when the sale is clearly said to be final? Linda Middleton- Dallas
We're about to sign a Purchase & Sales agreement on a new production home. It has no gutters or drain pipes, and I am concerned this will lead to more seepage through the foundation. The realtor says drainage is handled by "the land being graded outside away from the house". How do I know if this is sufficient. I've never heard of a house without gutters! I've found your book very helpful, however, when I've asked the real estate agent some of the questions you've suggested, I don't know what constitutes a good answer! For example, the footings are 12 X 24 and 3000 psi. Is this good or bad??? A quick response to these 2 questions would be greatly appreciated as we are about tho sign the P & S. Thank you. ----------------------- Headers -------------------------------- Mon Jun 30 22:22:18 1997
Thanks for reading our book, YOUR NEW HOUSE.
I think you're smart to be concerned about a gutter/downspout-less house. Unless you live in a VERY dry climate that gets little or no rain (like Death Valley, CA), every home needs them. The realtor's line that the grading would drain away water is bogus--it will end up ponding near your foundation and then seep into the basement/crawl space/slab. Trust us, in a year or so, you'd be adding gutters/downspouts at a $1000 or more--they're not cheap.
I'd insist on having these items installed BEFORE you buy the house. This situation sounds like a big red flag--I'd check that house carefully to see what other items the builder has omitted.
To be honest, without looking at the house, I don't know if those answers to the footings/concrete questions are correct. The best course is to hire an independent inspector with new construction experience--he'll be able to calculate whether the foundation footings are correctly designed/installed. Another option: a structural engineer is another inspector-type person who can inspect the home and report to you on the structural stability.
Does that help?
GREAT BOOK!!!
I had been searching for a good reference book on home building for many months. Each visit to my local bookstore turned up nothing, until I saw your book and thumbed through it. I practically read it before I left the bookstore; it answered so many of my questions, but I do have one more.....
I have purchased 6 acres and am planning to build. I know I should get several estimates from various builders, but I don't have the blueprints yet to present to them, because I'm not even sure how much house I can afford. If I go to an architect with what I want, there is the possibility that after I pay for the drawing and design, the estimates from the builders will send me back to the drawing board to change the size, etc... How can I determine what size and style home I can afford before going to the architect and/or builder?
Thanks in advance,
Sherri Sharpe
After reading several of your letters I wondered if there are any good builders - many of your letters are horror stories - do you have any success stories? I am a builder in Leavenworth, Kansas - have been in business here for 15 years. I have often offered my prospective customers long contact lists and financial information - and personal references so they can check out who and what I am. Sometimes the table is turned and the customer has become a nightmare for me - only wished that I had checked their references. In this area - work still can be done with a handshake. There are honest builders, customers, suppliers, bankers - subcontractors -----. There have been many jobs that I have completed (I am a remodeler/addition - residential/commercial design builder with a few homes to my name) without any draws until the final billing and the customer was satisfied. Sometimes in excess of 50K. Thanks for reading this note - it is possible short of a miracle to find a good builder, I'm one of them, Kent ----------------------- Headers -------------------------------- Mon Jun 23 21:15:00 1997
I was thinking about a situation I had building a dream home for a customer. They seemed at the outset to be the nicest people you could imagine. Then in the middle of the project they began to have marriage problems and would not communicate. One day I was instructed by the wife (architect) to do something and the next day rebuked by the husband for doing it - they eventually got a divorce - Being a "dog and a pick-up contractor" for these types is the nightmere I speak about. I'm have not read all of your book - but what I have read was excellent - I not afraid of give it to prospective customers - I often come behind other contractors and fix what they have messed up. My CO. is Rathjen Construction Co. Inc. 1429 Kingman Street, Leavenworth, KS. 66048 I also build web pages (church) http://www.theriver-kc.org - I heard you on the radio - 92.3 fm in KC - We were working and all stopped to listen - we told our current home owner that Bob Vila isn't on our crew and we don't cut diamonds. "These are now our mottos" Thanks, Kent ----------------------- Headers -------------------------------- Thu Jun 26 22:21:05 1997
I just found out that because I looked at a few model homes myself a few months ago and signed a "information card" to get a brochure and the floor plans, the builder's sales representives may refuse to share the commission with any future buyer's agent for a period of six months. The builder's often claim: why should they pay a finder's fee if I came in on my own? I wasn't even serious about buying a house then! What kind of leverage do I have on this? I am looking at used houses in the same area. Do I threaten to walk if they don't capitulate? I am convinced they will overcharge me on "upgrades" if I don't have a buyer's agent to negotiate with me. ----------------------- Headers -------------------------------- From jbennett@pop3.wt.net Mon Jun 23 03:55:26 1997
Jay
Thanks for reading our book, YOUR NEW HOUSE!
Great quesiton! You're right--this is a serious problem. Here are some thoughts:
· Most builders have a time limit on this process--if you signed the card and then bought within X days (60? 90?), they may deny a buyer's agent a commission. Confirm the time limit with that builder and just wait until it expires before you buy.
· If you can't wait, I'd go elsewhere and buy.
· Don't sign ANYTHING when you walk into model homes. If you must fill out a "info card", use a bogus name/address/phone so your rights are protected.
· You have no leverage in this case, because the builder's "realtor policy" will exclude a comission for a buyer's agent if they can produce your signature on that info card. Yes, it sucks.
And, yes, we wouldn't walk into this transaction with a buyer' agent to negotiate on options/terms, etc. Having the builder's salesperson represent your interests is like being on trial for a criminal charge and asking the DA's office to help you before the court.
Let us know how it goes!
alan & denise
authors, YOUR NEW HOUSE
Dear Authors: I enjoyed every bit of your book "Your New House." Wish I had read it before buying our single family house being currently built - at least before they laid the foundations. Not that I have any serious problems with the construction, but its just that I would have been a much more informed buyer to begin with. Anyways, I took all of my information from the people around me and the people who have moved in that development. The house is being built by M/I Homes and is in Ijamsville, MD. Here are my couple of quick questions: - The house is in the framing stage. On the outside of the frame, the builder has stapled the "thermoply" sheets. These sheets will be caulked at the joints and covered with bricks on the front and sidings all around. So no sheething and no wraps. Is this OK?? I thought use of sheething (made of 'chipboard') also provides good sound insulation. What do you think about this practice? - On the average, how many nails should be allowed to miss a joice?? Silly question! Well, I guess what I need to know is that if you see around 10-20 nails missing the joice of about 15' long, is that a cause to be alarmed? Once again thanks for a great book. Sincerely, Mohammad Ahmad ahmadm@sdd.comsat.com P.S. What are your opinions about M/I - just want to see if they coincide with what I found locally. ----------------------- Headers -------------------------------- Thu Jun 19 14:32:07 1997
Dear Fields
First let me say that I have very much enjoyed reading your book and have found it very informative. I am about to start building a semicustom home in Bakersfield CA and have found a builder who I like with a floor plan that he has experience building. We have made fairly major modifications and I have tried to pursuade the builder to spell out a essentially a cost plus deal with detailed estimates and his margin. I understand and feel pretty comfortable spelling out the costs. What I would like to know is how I can find out about the range of acceptable margins for builders in my area. The house will be about a $400K home which is in the upper end of the builders price range. Can you give me any insight?
Thanks
Bruce Burton
BCBURTON@aol.com
Bruce
Hi! Thanks for reading our book, YOUR NEW HOUSE.
I'm not sure there is an answer to your question. As you know from reading our book, builder's profit margins vary from 5% to 20%, depending on many factors (location, price range, etc.). The market is probably the biggest factor--if builders are begging for work, you can be sure they will work for the lower figure. And, unfortunately, the reverse is true too.
I'd assume the your builder would probably want to have a "gross profit margin" of 15% on most items he's bidding. When you subtract out his administrative expenses for running your job, it's obvious his profit would be less---but how much less depends on how good an adminstrator he is.
To be honest, I wouldn't worry so much whether the builder is making a too big/small profit on your job. Just make sure the final house is worth about what you're spending--that is, check the recent "comps" (comparable sales) of similar size NEW homes in your area. If you're spending $110 per square foot and that's what other houses are going for (assuming the same/similar amenities, etc.), then you're OK.
Don't expect to get a bargain in this process (that is, spending LESS than what other houses have sold for). Just try not to overspend!
Does that help?
alan & denise
authors, YOUR NEW HOUSE
Denise and Alan.. As a purchaser of a new home, I have read with great interest you book entitled, "Your New House". It is an extremely valuable source of information! Thanks for providing such a wonderful reference source for your readers! I have a question though.. hopefully you can provide a bit of guidance for me. I am having a home built by a reputable builder in my area (central NJ). They have already poured the foundation, removed the forms, and backfilled it (about a month ago). As a result of the backfilling (probably), the foundation was cracked from top to bottom, all the way through (this is a full basement). For the past month, I have been after the builder to repair the damage (no construction has taken place beyond the foundation yet).. they have "admitted" that the foundation has been damaged and have told me they will repair it with waterproof epoxy, both on the outside and the inside of the foundation (so they'll have to re-excavate at that spot). They even claim that two structural engineers looked at it & they say the foundation is fine. From a structural standpoint, that may be so (if you believe them), but I'm also concerned about water seepage. Well.. about a month has gone by, and nothing has been done (on their part). I have made repeated requests to the builder to provide me with a written statement detailing the repair and the materials used to do the repair, but I'm not getting too far. Either my phone/written messages are ignored, or I'm told a letter regarding this has already been sent to my lawyer (he has received nothing). I already have my lawyer involved in this, but the builder's lawyers are now claiming the crack is due to "shrinkage." (There are shrinkage cracks appearing, but nothing of the magnitude of this particular crack). I have also contacted the local township officials who claim that they will investigate & tell me not to worry... yet they haven't investigated to date after 2 weeks of attempting to nudge them to do it. The sales office simply tells me that I "... won't have any problems with water. We never get water in our basements." Yeah right! This isn't good enough for me! So my question is, what else can I do? I'm trying to find as many ways as I can to "pressure" the builder to fix this & not have them "weasel" out of it. I'm also trying to get it repaired before _any_ more construction takes place. The lawyer is doing his part, but I'm wondering if I can do more. Call in an independent inspector? Is there a way I can prevent them from continuing construction until it's fixed? Are there any other agencies or organizations that may be able to help? Any thoughts or suggestions would be greatly appreciated. Thanks in advance for your time!! Sincerely, Don Martin -- ______________________________________________________________________________ Don Martin drm@ibmail.smst290.att.com AT&T - 290 Davidson Ave, Somerset, NJ 08875 1-908-805-2308 ______________________________________________________________________________ ----------------------- Headers -------------------------------- Sat May 31 17:24:30 1997
Don
Hi! Thanks for reading our book, YOUR NEW HOUSE.
Well, that sounds like a difficult situation. It also sounds like your handling it as we'd advise (have an attorney's advice, demanding the builder fix it before you go forward, etc.).
A couple of thoughts:
· Do you own the lot or does the builder? You're ability to stop construction would be strengthened by owning the lot, of course.
· I'd consider hiring your own structural engineer to give you an opinion on this matter. I'd hire someone with extensive residential construction experience/knowledge and get them out to take a look at it--and suggest a cure, if one exists. That way you can back up your demands with "expert" opinions.
I don't know of any other government agency that can help---BUT, you can ask your lender to help. Sometimes, it helps a builder get "motivated" if your lender says they won't loan any money on a house with such a crack .
I hate to say it, but you may have to walk away from this deal if you don't get satisfaction. Let us know how it goes.
alan & denise fields
authors, YOUR NEW HOUSE
Alan & Denise..
Thanks so much for your response regarding ideas for how to proceed with
the repair of my foundation. As luck would have it, coincident with your
reply, I received an engineering report from an independent firm detailing
the repair procedure. From my research, it's exactly what should be done,
so I'm satisfied... for now. As the saying goes, "I'm from Missouri", so
I won't rest until the repair has been completed in accordance with the
engineering report, inspected, and certified as such. I'm told this will
happen, but I'll believe it when I see it! :)
If you don't mind I'd like your "consumer-oriented" opinion on a couple of
options I'm considering. All relate to resale value:
-- Finished Basement: This will come with a full bath, separate heat and
AC zone (though I'd delete the AC), WW carpeting, full-height drop
ceiling, and cable & phone outlets. It would add about 1,000 SF of
living space to the house, and I already have specific plans for it.
My question is this: on resale, what would this add to the value of
the house? From what I've been able to glean from local realtors,
finished basements are a definite plus in my area (NJ). Everyone says
that money spent in kitchens and baths is well worth it because it has
such a high value in resale. I wouldn't expect a finished basement to
command the same attention as a nicely appointed kitchen, but it probably
still provides a good return on the investment. What are your thoughts?
-- Bathroom faucets: Sound strange? The builder is offering several upgrades
on the standard Moen faucets in the bathrooms. I've narrowed my "likes"
to chrome (standard), a mix of chrome and "gold", or all "gold" finish.
(I'm specifically considering upgrading the faucets in the first floor
powder room since it'll be heavily used, and the Master Bath which
includes a Tara soaking tub & whirlpool.) I hear so much hype about
gold faucets in bathrooms! Are they really worth it? Is there any
value there in the resale? Or are they simply just nice to look at
because they look more elegant?
-- Built-in Oak Bookcases: These would be custom-installed on either side
of the fireplace chase, be about 6.5 feet long (each side), 1 foot deep,
and 82 inches high. I love everything about them (except the price).
Is it worth it to consider getting these? Does it add much to the resale
of the home?
On a side note, do you have any suggestions/recommendations as to who
I could contact about "finish carpentry"? I'd like to get a comparable
rate for possibly getting the built-in bookcases done after purchase on
my own. I looked through Chapter 12 of your book on bargains, but didn't
see anything mentioned there. Not sure where I'd look (or who I can
trust).
Each of these are options that I can afford, so the bottom line isn't too
much of an issue from that standpoint. They are, however, a little pricey,
so I'm concerned that the investment aspect may not be too worthy... which
is why I'm seeking independent opinions!
Again... thanks VERY MUCH for your time. You are doing every new home buyer
a tremendous service with the information you provide. I am very grateful!
Thanks for giving me an understanding and some piece-of-mind with this
seemingly overwhelming process! (And yes.. I am a first-time home buyer!)
Don Martin
--
______________________________________________________________________________
Don Martin
----------------------- Headers --------------------------------
Thu Jun 5 07:30:30 1997
We have a mutual friend, Brad Inman so, I would like to take the opportunity to introduce myself.
Our company provides school information (K-12) in 30 major metropolitan markets in the United States. We are launching a national campaign to provide the School Profile 'Starter Office Plan' free to all real estate offices. We have signed are first co-partnership agreements with the LA Times, Digital Cities and will be completing an agreement with Knight-Ridder New Media to provide our information on all their sites. I invite you to visit our site at www.2001beyond.com and see why we help provide the answer to the second most asked question in real estate, How are the Schools? Thank you for your interest and look forward to meeting you at the Real Estate Connect 97 conference in July.
Jan R Anton
CEO, 2001Beyond
jan@2001Beyond.Com
888.457.2001
----------------------- Headers -------------------------------- Wed May 28 23:18:35 1997
Thanks for your comments. Anyone can get as many School Profiles as they want absolutely free. We charge real estate agents who can customize the report with their name, office address and phone number including their clients name. The one year fee is only $10 per year for unlimited reports. We provide over 200 unbiased facts on school districts. We do not rate schools but provide enough information to help parents in choosing schools. Each report can contain up to 4 school districts side-by-side for easy comparison. Please feel free to call me at 888.457.2001 if you have any other questions. Jan Anton
I recently finished your book, "Your New House", and was most impressed. We're having a new (semi-custom at best) home built that was scheduled to be finished July 31. As of latest report, it's now scheduled August 15. Based on your book, I'm thinking October 1, at best! I have been unable to find inspectors who will do pre-completion inspections (foundation, framing, etc.) as you suggest in your book. I've called several ASHI inspectors, and they don't do it. Apparently, they prefer the quick $ of the inspection prior to escrow. Any tips you can give on where to look for construction advice? I'm not an expert, and I feel there's been some rushing on the foundation and joists so far. Thanks, Bob Neylan ----------------------- Headers -------------------------------- Thu May 29 01:12:14 1997
Bob
Thanks for reading our book, YOUR NEW HOUSE.
Well, you're right--it is easy for us to advise getting an inspector and another matter actually finding one, depending on where you live. Did you ask the ASHI inspectors if they knew anyone who does new construction monitoring? Another source: call a few residential architects in your area. They be able to refer you to a structural engineer or inspector who can help on the foundation. Of course, you can just call a few engineers from the phone book, as well.
Another idea: consider hiring a retired contractor who might do this on an hourly basis. Contact your local homebuilder's association for a possible referral.
Yes, I realize this is not an easy task, but we think you'll be more happy in the end. Let us know how it goes!
alan & denise
authors, YOUR NEW HOUSE
We are finalizing our plans to build a custom home. I want to pick all of our selections, ie: plumbing fixtures, lights, tile, carpet,etc., before we sign a contract so that there are no allowances and we have a definite price for the home. Is this smart or is there a better way to accomplish the same end?
Builders in our area have their own suppliers which give them better discounts depending on the volume of business they give the supplier. How do we eliminate the allowances when the three contractors we are requesting proposals from use different suppliers? We don't want to shop three times. We are not real picky. If Kohler has a faucet we like as much as an American Standard, we will pick the less expensive. So the selection of a particular product is dependent upon the contractor we ultimately select and his suppliers.
If we have to include allowances, how do we avoid using all of the allowance even if we choose something less expensive. I am always concerned that the suppliers and contractors work with each other to use all of your money.
Help!!! Thank you.
Donald and Joanne Eckler
Donald & Joanne
Hi! Thanks for reading our book, YOUR NEW HOUSE.
Those are good questeions about allowances. Our thoughts:
1. Yes, specifying as much as possible IN ADVANCE take out the risk for both you and the builder. Yes, that means giving an exact model of Kohler toilet (and all the research that entails), but in the end you will eliminate most of the allowance game.
2. How do we eliminate the allowances when the three contractors we are requesting proposals from use different suppliers? Well, if you pick sufficiently common brands, they should be able to source the stuff from any supplier. For example, I'm sure NEARLY ALL plumbing suppliers stock Kohler and American Standard, so pick stuff that is from an easy-to-find brand. Even if the supplier doesn't normally carry it, they can usually special-order (although that might cost more and take longer).
3. Certain items like carpet are more generic--you may want to go with an allowance on that item. Just do some shopping before hand and tell the contractor you are expecting $25 per square yard (or some other number), in terms of quality carpet, and so on for other flooring items.
4. If we have to include allowances, how do we avoid using all of the allowance even if we choose something less expensive? Allowances can work one of two ways: in some cases, if you don't spend all the allowance, the builder keeps the difference. That obviously encourages you to spend more than you might think is really necessary. An alternative: write into the contract that you receive a "credit" for unsued allowance money.
But you're right--most suppliers/subs know exactly what your allowances are and it is not too surprising to find their "final" bills equal that amount. Hence it may make more sense to set the allowance figure to be as "realistic" as possible at the outset (and avoiding the temptation of trying to get a bigger allowance with an eye toward spending less and getting the "savings.").
Does that help? Let us know how it turns out.
alan & denise
authors, YOUR NEW HOUSE
We are building a house in Florida. The builder is offering a choice of Pella Pro-line or Weather Shield windows. The Weather Shield is suppose to be resistant to breakage this feature has appeal because of the hurricane risk. Do you have any knowledge of this product?? We would use these windows versus the Pella and forgo using hurricane shutters which will cost more than we want to spend. What are you thoughts?? Since I have you do you have any thoughts on lightning rods? We will be on the water and they make sense to use but the builder says."they do not do a damn thing." Which I assume translates into "I do not want to deal with any extra complexity." Thanks Jim and MJ ----------------------- Headers -------------------------------- Tue May 27 13:35:40 1997
Jim & MJ
Thanks for reading our book, YOUR NEW HOUSE.
That's a good question--personally, we'd prefer Pella. We're a little confused about your question--how do the WeatherShield windows resist damage in a hurricane? Are they tempered glass? If so, I'm sure Pella offers that option too.
I'm not sure how WeatherShield can made that claim, though. Let's be honest--if another Hurricane Andrew hits Florida and hurls chunks of lumber at 200 mph toward your house, I'm not sure how anything short of hurricane shutters would prevent them from penetrating the home.
I'm sure it is tempting to forgo the expense of shutters--but one broken window in even a tropical storm can do an immense amount of damage in your house. I wouldn't risk it.
We had a "lightening suppression system" (fancy name) on our home in the Rockies that sat on a ridge. I'm convinced they do work, if designed and installed properly. While there is no "brand" name to recommend, I'd just look under the phone book under a suitable heading. I'm sure there are a few firms down there that do this--they basically install spikes every X feet on your roof and run a cable down the side of your home to a ground. It's a wise investment in your area. Make sure you check the companie's references and insure they are using "professional grade" wire and equipment, of course.
Does that help? Thanks for reading our book, YOUR NEW HOUSE.
alan & denise
authors, YOUR NEW HOUSE
Hi guys...my wife and I are just down the road in Wheat Ridge (soon moving to West Woods Ranch near Arvada Reservoir...well, maybe soon...or maybe not, depending on when they finish our new home...or when they even start our new home, for that matter). Great book!!! However, with the following comments, you are bound to improve the next edition and sell even more copies to buy an even more expensive home (I hear that a real nice Tudor on the hill is hitting the market soon...ha-ha)
a Along with the fact that most builders gouge the prices on upgraded items ( I just found that an upgraded sink that Genesee charges $450. for is $158. at Eagle Hardware)...I have learned that many of the standard appliance model numbers listed by the builder are from a special 'builders group' of products offered by the manufacturer. This is done so that the buyer can't shop prices for the same standard appliances at another outlet, since the other stores don't even have the same model numbers in their price books that the builder provides you with!
Quite a trick, huh?
b. Speaking of options, on page 153, you state that, as far as what's included as standard, "Only the salesperson knows this". Major faux-pas, Fields. We have learned that, although Genesee builds great homes, their sales staff ranges from 'bright and informed', to 'temporarily filling in while getting their real estate license'. We have had sales folks tell us the wrong stuff as far as standard inclusions go. Fortunately, we are early enough in our building process to straighten out a lot of nonsense that the builder is misinforming us about.
c. You might want to list an index of web sites in the back of your next edition. It's a real pain to flip thru the book to locate a site that I remember reading about 2 weeks ago.
d. By the way, the real deal on having a three car garage (as opposed to more storage room for the junk), is so that your teenager won't leave his or her car in the driveway, thus blocking mom or dad's car inside. (Our daughter's never getting her own car, so we don't need the extra bay...we already spent her car money on the house!)
e. How about including Eagle Hardware & Garden in your future edition for chapter 12? They are far and away, the best large home-type store that I've ever seen (there's one near 58th & Wadsworth in Arvada if you want to check it out for yourself)
That's it for now. Thanks for creating such a great and practical guide for us new home builder types. Good luck, and congratulations on your (not-so-new) baby!
Take care,
Jeff Hammo
Dear Alan,
Thanks for your note providing your web site. I was cruising through and noticed you still have letter about MagnaLac posted. We have settled with MagnaLac, due mostly to information from the Denver area situation I mentioned. The fact remains the product is durable and extremely hard, but it was designed for application under controlled conditions, conditions the normal home under construction does not come close to being held within.
Thanks for all your work.
Dick
Last update: May 13, 1997
At the recommendation of our Friends of the Library book selection committee, our local library recently acquired the second edition of YOUR NEW HOUSE. You certainly cover a lot of ground. Fortunately, my wife and I, having had four custom homes built, have never encountered the degree of problems you emphasize as to-be-expected. We've never had an architect, but we have had pickup-and-dog builders who were great. We're even thinking of tackling our fifth house! Time to move from a two story to a one story. Four suggestions: (1) That you broaden your scope of examples and references from mostly east and mid-west to include the west; (2) that under Siding you include the fiber-reinforced concrete sidings that are now quite common in this area (Hardiplank by James Hardie Building Products being an example); (3) that you provide simple illustrations of some building terms in your Glossary, i.e. anchor bolt, beam, flashing, header, joist, rafter, sill, and truss; and (4) that you refer to the publications from the AARP about planning homes for people with physical limitations. I wish I could view your Web Site, but my computer isn't up to that level of sophistication. Perhaps you have already covered my suggestions there. You sound like an energetic writing couple...all those different topics! Dave Wood ----------------------- Headers -------------------------------- From dandhsequim@juno.com Thu Apr 24 03:31:33 1997
Dear Alan and Denise, We had volunteers outside the entrance of Bartle Hall the majority of the time during the Home Builders Association home show last weekend. Nancy and Paula did the first shift and found out right away that we could not attach our posters to the outside pillers and we could not hand out our brochures inside the building. A security guard asked them to remove the posters and to only approach people outside the main doors. Many people were very receptive. We had opportunity to talk to professionals (attorneys and engineers, etc.), a few builders, subcontractors, and of course the consumers. One of our members knew the hot dog stand man, so we received encouragement from him (along with reduced prices on hot dogs). We handed out approximately 1000 HADD brochures and carried large lemon-yellow HADD posters During my shift, I had a security guard come up and tell me, "you're causing quite a stir inside." He asked me if I knew anything about the houses that slid down the hill. We then had a lengthy discussion about defective construction. Before he left he told me to let him know if any other security guards gave us any trouble. We didn't cause any major controversies, but it was very apparent that the builder's association knew we were there. We had opportunity to talk to many consumers, thus we considered our educational event a success. We're having our next HADD seminar on May 17, topic -- Water Management -- covering grading, guttering, downspouts, etc. Your remarks at Nancy's house initiated the idea. I contacted an engineer that attended your seminar to see if that would be a topic he felt qualified to cover. He was very excited about it as he is very interested in the problem/prevention/and rememdies. I'll be sending you our first draft of "HADD History". Reading in your book that HADD was the "brain child of Lynn Gansert" was a concern to us. There have been many contributors. If any one could claim HADD to be their brain child, it might be Missouri Representative Bill Boucher. We did meet this last week with a builder who is part of the Certified Master Builder Corp. We're trying to establish ties, but it always seems as though they have tunnel vision, not being able to see the broad picture. Tomarrow starts the Certified Master Builder Homes tour which premieres their "quality homes, the best that Kansas City has to offer". Normal people go to look for interior design ideas or for a new house to buy. HADD people go to see how many defects we can spot. It's our HADD pastime. 20/20 featured builder, Mark Yansik has 7 houses on the tour. Sincerely, Mary Judy ----------------------- Headers -------------------------------- Sat Apr 12 21:26:54 1997
Thank you very much for your quick response! My Husband and I are reading over your book. I can't begin to tell you how much your book has assisted during our planning efforts to build / buy our first home! My husband (Rob Jackson) has spoken to Alan, to express our appreciation. This will be our first home, and your book (as scary as it reads) has tremendously assisted in our decision-making process. We will make good use of your advice on DeGeorge Home Alliance. Just for your information: DeGeorge Home Alliance, Inc. is an organization who sounds much like a lender. DeGeorge finances 90% of land, 100% building materials, and 100% of the labor costs. The difference is, they also oversee the complete building process. They offer advise, home plans, recommend subcontractors, etc. With DeGeorge, the buyer is also the general contractor. DeGeorge claims to assist the buyer through every step of the building process. Since the buyer is the general contractor, the normal fees which would normally be put towards a general contractor would result in equity. cost of materials, land, subcontractors = $80,000 assesed value of finished home = $100,000 ---------------------- equity=$20,000 When the house is completed, the buyer then takes a mortgage, to pay back DeGeorge. DeGeorge claims that this is beneficial to the buyer, because by this time, the buyer now has accumulated equity. DeGeorge Home Alliance, Inc. 99 Realty Drive Cheshire, CT 06410 1-800-782-2934 Thanks again for your time! Our best wishes for your continued success! -Rob & Cindy Jackson ----------------------- Headers -------------------------------- Wed Apr 9 18:58:27 1997
Dear Alan & Denise Fields,
We just found out that our builder is going out of business. We've only been living in our new home for five months and we are concerned about future problems that we might encounter. Can you give us any information about our rights and how to protect them? Any help for us and our entire neighborhood would be helpful. We live in a planned community and every house in our particular neighborhood was built by the same builder.The company has been in business at least 12 years,but our neighborhood is only about 2 years old.Thank you for any assistance you can provide.
Rusty & Selena Wolfe
Suffolk,Va
Rusty & Selena
Hi! Thanks for the note. To be honest, we're not quite sure what can be done. A couple of thoughts:
1. If your homes came with a warranty insured by a third party (like HBW), you'd still be protected.
2. If possible, find out who the sub-contractors were who worked on the home. That way if you had a problem with the furnace, for example, you could just contact the heating company direclty and so on.
Beyond that, there's not much else one can do. Most "warranties" are only good if the builder stays in business. Let us know more details about the situation.
alan & denise
authors, YOUR NEW HOUSE
Dick and Julie Stenabaugh 8904 Redbud Lane Lenexa, KS 66220 (913) 764-3135 stenabaugh@AOL March 31, 1997
Dear Denise and Alan,
The thought has been occurring to me lately that we certainly have made our share of enemies in the process of building our home. The process of writing a book about the problems of home building might well make a bigger, broader, block of enemies. And then to have the audacity to go on television and make speaking engagements is more than they can stand! Although we would wish this not be the case, somehow we just cannot imagine how it would not be so. You are to be commended for standing up for what is right and correct against the greater home building establishment. Even our law makers cower at the thought of treading on the turf of this vital segment of our economy.
I promised that I would write you with our list of root cause problems that we have discussed between ourselves that we think at least contributed to our problems at 8904 Redbud Lane. I probably should spend more time organizing our thoughts, but I am not trying to get published only convey some ideas which maybe you can use to help others avoid a similar fate as ours. So, in no particular order, our list includes the following:
* I travel a great deal, or, plan on being there, or better still, pay someone else to be there. This set up the scenario of a problem being a week old before I saw it. Lead by the builder, the subs soon figured they need not listen to Julie, and would consciously avoid seeing her. I was slow in catching on. The conflicts were always between us and the individual directly. Better to let them cuss that louse of a homeowner behind your back. These then were taken as change orders, first it was done wrong then correcting it to what we originally asked for became a change (and a charge!)
* We trusted the builder, or, don't confuse morals with workmanship. We are Christian; our builder is Christian. We thought this to be ideal, and if the builder said something was thus and so, we took him at his word. This further made the task of terminating him more emotionally charged, and actually prevented us from making the tough decision earlier. We had not surrounded ourselves with other knowledgeable people. Do not expect people in the building trades to abide by the Golden Rule. In fact, if they even suspect you are of that persuasion, they love you man. They have an effective "grapevine," and once spotted, you're dog meat. We have had people come to our house to bid work, but once they figured out who we were, they're gone (in our case.)
* We have no family in this area, nor are we from this area, or, get to know Guido. Where your family is, you just have a better network of information. You also have a better likelihood of knowing at least who to avoid. The pain to the offender is greater if you know more people, and they may be less likely to harm you. The alternative is letting Guido get even.
* We had too much money, or, keep your financial information between you and the bank. That is to say, although we are not the Rothschilds, we had saved a large down payment and were able to request upgrades. We were proud of the fact that we were building a home we could not afford had we not saved for years. (That in itself was meaningful to no one but ourselves.) This is viewed as "deep pockets." In fact, I told our framer that I never wanted to again hear those two words in succession out of his mouth, as he had used them for an excuse far too often. (We paid our framer far too much; they were far too slow, vulgar, stupid, and untrustworthy.)
* We did not determine what we call quality and what the builder calls quality are in the same world. Even when seeking references we missed this point, and if quality is something you seek, we suggest you get it well defined before you move ahead.
* This was our first building experience, or dip your toe before diving in. We truly wish that we had attempted a smaller home, one we planned to sell, before attempting to build our "dream" home. We would have learned a few pitfalls, if not deciding to forget the whole ugly experience.
* I know just enough to get into trouble, or, in another way, surround yourself with knowledgeable people. We took solace in the fact that we had done a lot of work restoring a 125 year old home in Iowa. I can plumb, I can wire, I can build walls, I can drywall, I can insulate, I can nail, I can saw, etc. NONE of this is building a custom home, and don't be fooled into thinking these kind of experiences translate.
* Never, never, believe the line, "that's the way we always do it." In fact, it should set off an alarm, wave a flag, that something is wrong. We have more garbage in our house with that the way out for the builder or sub. I only wish we knew if it ever was an honest statement.
* Never pay everything in full until you are absolutely sure the work meets your agreement. The pain of listening to their lies about how they have to have your money will be quickly overcome by the pleasure of them coming back to fix a problem if necessary. Never pay in advance. Although I will say of all the stupid times we did pay in advance, I was rewarded by the deck guy who did finish the work we paid him for in advance, albeit two years late, but he turned out to become a believer, and we won a brother.
* You cannot be nice when the other party is not nice, or when they owe you. They don't understand nice; they do understand in your face and sincere threats of getting into their pocketbook. Our attorney can get nasty, and we used that to our benefit. Be bold, use nasty. I'm not suggesting stooping to their level and getting vulgar, just don't be a softy. Remember, too, time is your enemy, therefore his weapon. Try to not allow things to drag on...the longer it takes, the better chance you have to lose.
* Strike up a relationship with the city inspector, your builder already has. Better still, get to know the engineer. No sense in letting the builder play the inspector without there being some balance. We didn't know better. What we do have is a professional engineer stating our framing is the sloppiest he has ever seen, and we did not have snow load on our roof in spite of 2 X 12 rafters on 16 inch centers, a "forest of lumber" states his report. We lived in this house over two years on a temporary occupancy permit good for I recall 60 days. The week we threatened to file suit against the builder, the inspector came by and provided our final. The problem is, we had never completed the work required at the time the temporary was issued, planting trees along the street. I view that as more than mere coincidence.
* Beware the sub of a sub of a sub. First, the whole intent gets distorted in the trickle down. But then you have no recourse because you can't find out who is responsible. There was a recent scam in Kansas City where illegal immigrants were building apartment complexes. When found out, the INS deported the workers, but no one was charged because these people didn't work for anyone. Now, how did that happen again?
* A few positive suggestions. Keep a diary every day; write it all down, especially conversations otherwise not written. Take plenty of pictures or video, and keep every scrap of paper. We have found pictures taken for no particular reason have revealed much in the aftermath. Another great investment is a quality tape recorder on your telephone; tape every conversation related to the project. Keep the tapes labeled and in a journal.
Well, I have rambled on much more than intended. I guess you can detect both our intensity as well as our new found cynicism. Our loss of trust and faith in our fellow man is truly the most devastating part of this experience. We really do not like this attitude now in us. The difference is we are working to recover and put behind us all the negativity associated with the building process. Whether we meet with success will only be known when we are able to live in this house as the house we began building in August of 1994.
I trust you can make sense of our insights, and look forward to your feedback if you wish. Thank you for listening.
Your friends,
Dick and Julie Stenabaugh
Thanks for writing Your New House! You saved me from writing such a book... (I, too, am a writer; I accept your condolences).
I have a question about construction loans. I'm planning a new home. Assuming I use a "fixed price" contract, and the construction loan is in my name, and I sign the draws (as per your advice), shouldn't I also be willing to accept responsibility for the interest charges? Obviously, I have to pay it one way or another, but a builder normally factors construction loan interest charges into his/her bid. I'm guessing that if I "control the gold," the builder will probably not want to commit to a cost that he has little control over. On the other hand, if I let the builder off the hook, what incentive will he have to minimize interest? I can imagine the tempation to order major components much earlier than needed to keep the schedule.
(Dave Butler)
This letter was written by Mary Judy, who has experienced a myriad of problems with her Kansas City-area new home. Here are her thoughts on "alternative dispute resolution."
Construction contracts now frequently have an arbitration clause or alternative dispute resolution, ours did. Alternative dispute resolution was supposedly one of the advantages of having a "Certified Master Builder". We would get the Certified Master Builder Warranty, and just in case this Master Builder left unresolved issues, we had the advantage of being to access the Certified Master Builder Alternative Dispute Resolution. Double protection!
In our case, the Certified Master Builder Arbitration clause was part of our contract. We didn't ask what all this process included because of course, we wouldn't need it because we had a quality builder. First lesson, assume if such a clause is part of the contract, the builder has it there to protect himself, therefore investigate the specifics of such a program.
When experiencing problems with our builder, we called the Certified Master Builder Corporation. Their response was that we had to close before they could help mediate our problems. Next lesson is that the builder is part of such a trade organization. Such a program is there to protect their own, not the consumer. They likely would have trouble attracting members (and dues) if they provided programs which informed and assisted the consumer. We most likely would have had more leverage by not closing until all issues were resolved. Money is the best leverage against a builder. Reputation, law suits, membership in their Master Builder organization are not of significant importance to many builders.
Attempting to remedy our situation in a fast, simple manner and not knowing the extent of our defects, we signed to file our complaint and to access the dispute resolution process. Although we had concerns about a clause in the agreement which stated that this waived our right to litigation, we signed. We had been reassured by the CMB president, that they could not take away our right to the courts. We innocently believed this, after all, who would think that an organization such as the CMB could strip you of one of you basic American rights, the right to a trial before peers? Instead, their process brings the dispute in front of the builder's peers. Furthermore, it keeps the issue out of public records. Arbitration filings and decisions are not public records, are not accessible to the public, and do not fall under the freedom of information act.
The first step in the Dispute Resolution Process was Mediation (or conciliation). We learned later that this service is also available professionally, but with the Certified Master Builder Program they "provided" the mediators at no cost. The mediators at our conciliation was the Program President and a member of their board of directors. Does this sound like a conflict of interest? In comparison, does it sound questionable to take an issue of medical malpractice to a panel of 2 physicians who are on the hospital staff with the doctor the suit is filed against? Ridiculous and probably unheard of, yet, this is what we were provided.
This process was definitely biased. Although we had issues which involved questionable billings (for items not in the house), we were unable to raise these issues as they were not "warranty issues". Many of the construction (warranty) issues were minimized or we were asked to overlook as they were "standard for the industry". The frequent use of "standard for the industry" made us realize how low the residential construction industry standards were. After a new car purchase, if the consumer discovered a faulty transmission, faulty rear door latch, or faulty gas tank; would the public accept the rationale that "that's standard for the industry"? Does the fact that many other car buyers experienced similar problems make it acceptable? Definitely not. If consumers were told that we should only expect to get 50,000 miles out of our new cars, that it is standard for the industry, would we accept this? Yet, this seems to be acceptable with the much larger purchase, our homes.
This mediation resulted in dismissal of issues which were matters of noncompliance to the blue prints. Minor, simple repairs were asked to be repaired. The major structural issues had mixed decisions. Our 2-story chimney which did not have a footing and foundation, but instead was set on angle irons was also not in compliance to the local building codes. Rather than telling the builder to fix it, to bring it into compliance, the builder was instead given a choice: 1) fix it, or 2) get an engineer report stating that it was acceptable in it's present state. This again seemed strange that although it violated building code, an engineer could say it was okay.
When the 3 hours of mediation concluded we were asked to sign the decision which was a mixture of a few repairs, an engineer's okay, and of course the items which we were informed "were standard for the industry". At this point we were easy to please, we wanted to put this behind us, so we accepted this decision.
The builder sent out his landscaping employee to begin some of the simple repairs. Since none of the repairs involved landscaping, but construction, even the simple repairs were a complex processes.
The mediation decision eventually fell apart, thus we had to live with our damages or go through the next step. We were informed by the CMB that if we chose the next step of filing for arbitration, they would no longer be able to help us. We feared for our lives on this one. What would we do without the help of CMB?! Their help so far was of immeasurable assistance!
The CMB "farmed out" the arbitration process. Once the consumer filed for arbitration, the CMB could wash their hands of the situation. The arbitration, which was part of the CMB Program was American Arbitration Association, a national company. Such a nationally accepted company must be fair, right? Unforturnely, we discovered most of our information too late. This process is touted to be cheaper and faster than litigation. We had to pay $1,500.00 to file a complaint. How much does it cost to file a law suit? We had to pay the arbitrator an hourly rate. How much do you pay a judge for his time? In arbitration, if a court reporter is used, this is an additional cost.
When we started to investigate the details of the arbitration, we quickly discovered that our signature to mediate, contrary to what we were told, did start us down this arbitration spiral to which there was no exit. Of course, by this time, we were also paying an attorney and experts.
After we paid our attorney to file for arbitration, which included his research and preparation of the document, we were provided a list of arbitrators. The instructions given were to strike several names and number the remaining to indicate preference. Then the AAA would compare the builder's list with the consumer's list to decide on the arbiter. If the selected arbiter was unacceptable, then AAA would appoint the arbiter.
Since our issue was that of construction, we were automatically pigeon-holed into Construction Arbitration. Inside the cover of their booklet is stated, "Representatives of the Fourteen organizations listed below constitute the National Construction Dispute Resolution Committee (NRDRC). This Committee is the sponsor of the arbitration procedure specially designed for the construction industry by the American Arbitration Association (AAA)." Among those listed in the list was American Subcontractors Association, Associated Builders and Contractors, Inc., Associated General Contractors, Associated Specialty Contractors, Inc., National Association of Home Builders, and a few other engineering, and architectural group; no consumer or legal groups. Makes a consumer feel right at home! This sponsoring group is to provide the consumer with an unbiased forum?!
Our arbiter list was comprised of contractors, construction attorneys, engineers, and architects; all professionals associated with the construction industry. When the fairness of this selection was questioned, the AAA representative stated that it was important that the arbiter have knowledge of construction so he would understand the issues. When asked about the consumer fraud, fraudulent billings and other legal issues; AAA stated that it was our job to present the information in these areas and the appointed arbiter would make a decision on the legal issues too. These statements regarding construction issues and legal issues were obviously in conflict.
As a result of the selection process, an engineer was selected. This engineer came from a family who was in the construction industry, family members were members of the CMB and also involved in the real estate industry. We feared if we turned down this selection, the appointed arbiter would be even more biased.
We went into arbitration with a claim of over $80,000.00. We had to have engineering, architectural, and repair reports completed which resulted in the facts to support the repair figure. This claim figure was about half for repairs, the other half was to pay for our attorney and expert expenses and for what we presented as fraudulent billing. After several months of preparation, 2 hours of deposition, 24 hours of arbitration, we "won" an award of $16,800.00. Several thousand dollars of this award was to reimburse us for the arbitration costsand about $13,000.00 was awarded for repairs. Of course this figure did not even cover our attorney and expert costs. None was left to fix our code violations and structural deficiencies. The engineer-arbiter made no award for fraudulent billing even though the builder admitted to some of the questionable bills.
The builder did file this decision with the court system, which was unusual. If not filed, the builder's problem never become a matter of public record. Even with the filing of the decision, limited, nonspecific information is available to the consumer. This is one of the big perks of arbitration for the builder. If a consumer is researching a builder in court records, arbitration decisions are not listed. If they were filed in the court, what the consumer will find is usually a simple statement as to the amount of the award. What the consumer won't find are the pleadings, and all the other specific information which will educate the consumer about the builder. The arbitration process offers protection for the builder.
If the American Arbitration Association is a biased process, if most construction contracts require alternative dispute resolution, if litigation is too expensive; consumers must work to find an alternative to alternative dispute resolution. Other arbitration associations may offer unbiased arbiters, i.e. retired judges. It would seem that a retired judge is more qualified to make arbitrated decisions than an architect, contractor, or engineer. The sponsorship of the arbitration association should be evaluated. Rarely are arbitration decisions overturned if appealed in the courts. In addition, by the time arbitration is paid for, the costs to appeal is cost prohibitive for most consumers. The builder, in contrast, has his way paid for
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Fri Mar 28 14:09:29 1997
Dear Alan and Denise: I have just purchased a copy of your book entitled, "Your New House" and wanted to send you a message commending you for such good information. My name is Irvetta Williams, I am an architect and the owner of a start-up business, The Williams Group Construction Consultants. The Williams Group is a business I started to provide professional and affordable construction management services to various organizations including the residential services. I mostly pursue federally funded projects but also have a interest in representing homeowners with construction projects both new or renovation. Hence the real reason for this email message. I would like to present some of the information contained in your book to individuals considering building new houses. It will be an hour long discussion probably at a local library branch here in St. Louis, Missouri. The information I share will be free of charge at this presentation. I especially like the information in Chapter 6 House By Design and would concentrate my presentation mostly from this chapter. The added benefit for me is that I would gain exposure for my business. Please inform me of the consent process and who I need to contact next. Thank you for your cooperation. Yours Very Truly, Irvetta J. Williams ----------------------- Headers -------------------------------- Sat Mar 22 11:38:00 1997
Alan, Saw this post on the forum. I too have had problems getting my ads into the Real Estate Book. The local franchisee said he'd have to run it by his other advertisers first, and then turned down the ad on a technicality. He said a bunch of things that were anti-trust-like until he got read the riot act by our local Realtor Executive Officer. Since then he's covered his tracks, but would probably (I guess) make the same mistakes. His other advertisers - other realtors - are putting pressure on him not to run these ads. Don't know if that's any help, or if you can use it, but I'd sure be willing to answer any other questions you may have.... >Just got off the phone with Alan Fields (Your New House)who was on the 20/20 >spot. Just happened to mention that we from time to time have problems with >the home magazine publishers and it usually comes from trad pressure and >threats. He seemed to have a real interest and suggested that if we had >anything to support that it was going on to get it to him fax or email. He >has high visibility and might expose it on tv or in book form. Again the >pressure or force against us may end up being better news than anything >else. NAR embraced buyer agency to get it out of the news, then they bought >REBAC to control it and to water it down. The news industry (most) now says >that agency is a dead issue and not news worthy. A few good plugs on why you >can't find EBA's might bring it back to life. By the way THANKS to all who >mailed THE REAL ESTATE BOOK ads and stories. I still need more. Mail to Ron >Henderson, Eagles in Real Estate, 220 St James Ave., Goose creek, SC 29445 >oh! and Allen Fields fax 303-442-3744, email adfields@aol.com Rich Machado Conscripted Chairperson NAEBA Technology Committee <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><> r i c h a r d e. m a c h a d o *** t h e b u y e r ' s a g e n t Representing Buyers exclusively! 508-994-3030 Fax: 508-990-2740 POB 950, New Bedford, MA 02741 http://ma.living.net/Firm/10065598 ----------------------- Headers -------------------------------- Fri Mar 21 13:36:16 1997
Builder inquiry
I like to start out by saying i loved you book...I'm looking at buying a production home in South Jersey,(Winslow Twp.) the development is owned by a company called Group Ten Builders, Inc.. The Compay is supposibily made up of 10 sub-contractors who decided to get together and start there own business, by building the homes themselfs, cutting out the middle man. This all sounds great..and "looks good on paper", but i would like to check out the company. I am not sure how or where to go. The houses they offer are conciderible lower than other homes in the area. An example of the modle i'm interested in is: 4 bedroom, 2 1/2 bath, living room, dinning room, eat-in kitchen, family room, one car garage, and finished recreation room/ basement; that runs the entire lenghts of the house, aprox. 2212 sq. feet. Again this sounds great, but no other builder in the area can come close to there price and have had nothing negitive to say about the builders. All that's included in the house seem pretty standard to what other builders are offering. Should i be worried??? Where can i go to get more information about these builders and this company?? Any information or help would be greatly appreciated. Thankyou and again I loved your book...
Take Care
Gerard Rein
Philadelphia, PA
I've never sent e-mail before, but I had to let you both know how helpful your book is. I'm only on page 34, but it has already been more informative and entertaining than the five "buying your first home" books I read before it combined. The copy I have now is from my library, but I'm definitely going to go out and buy my own (it's good karma). I'm getting married this summer, too, so I'm looking forward to reading some of your other books.
Thanks again, Paul R. Turner Lewisville, TX
Hello Alan & Denise, Thanks for your valuable input (and the speedy response!). We just finished interviewing four architects who specialize in residential housing in our area. It's interesting to hear the price range on a per square foot basis once given an idea of the types of materials (2X6 vs. 2X4) and methods (mud floor vs. thin set or backer board; poured concrete vs. double cement block) we prefer. What an education we're getting! Of course, we won't know a thing until the specs list is completed, requests for bids are sent out and bids returned. Ah, there's the rub! What do you think of one architect's mentioning that unless there is something extremely unusual about the soil or lot topography, a structural engineer need not be involved since the architect (assuming he/she feels comfortable and capable to do so) draws the foundation plans and specs and oversees the installation of footings, piers, foundation, subfloor, etc? We thought this was a bit odd, since the other three also do the foundation renderings but warned us that a structural engineer would be involved and that his/her services are not included in their fee. If there is to be a third edition of the book, YOUR NEW HOUSE, you may want to include a few hints about the topography survey; i.e., the difference whether the lot is natural and heavily treed (which drives the cost of the survey up, up up), vs. being cleared and easily to access (which brings the price down). I hear, the old-time surveyors would drag a heavy chain and note the path it cut. Also, I understand that you can specify the survey to measure every 5 ft. vs. every 2 ft., this also reduces the survey's cost without causing problems. The dilemma is, of course, the clearing is usually part of your excavation expense/package. But what if your haven't chosen the builder yet, who usually offers this as part of the package?! A case of what comes first: the chicken or the egg; knowing that without a good "topo," the architect can't get started to do the job. As for tree stump removal: you need to know how far away is the dump and how good your trees being cleared are as they can be worth something to the lumber (hard woods) and pulp (pine) mills. So you can ask the question, "How much will you pay me for my trees?" vs. "How much will you charge me for removing the stumps?" As for the website, windsorspeak.com, I was able to access it. But when clicking on the "Latest Update" link, I get an error message. Thanks again, Leslie B. ----------------------- Headers -------------------------------- Thu Mar 13 18:41:10 1997
Dear Denise and Alan,
We have come to think we know you, and just wanted to write a quick note saying we enjoyed "meeting" you on 20/20. We looked with great anticipation toward this show airing ever since we heard it advertised. Your being on the show was just an added benefit. By the way, congratulations on your new baby!! Alan, I was glad to meet you in person in Kansas City this past Saturday at the HADD meeting.
A quick update about our situation. We have but one active lawsuit and arbitration with the builder remaining. Although none of our lawsuits went to court, we received a settlement in each case. Our settlements have not covered our attorney fees by a long way, in the range of $20,000! We're not complaining exactly, someone must stand up and be counted, and we feel we have done ourselves proud and just. This journey has been one no one should have to experience. I appreciated you comments to the lady at the HADD meeting who went on 20/20. I was advised by a vice-president of the company for whom I work that "publicity was not always good" for my career. I believe we may have discussed this over the telephone. 1997 may be the year we actually "move" upstairs and live in the house we thought we were building in 1992.
We appreciate your work and are glad to see your efforts flourish, or so it appears from here. It also seems that the general public is taking note of the horrendous quality and integrity state of affairs in the building industry. If you tire of shoddy workmanship issues, get involved in the tax evasion pervasive therein. I suspect few industries offer the opportunity to thumb their noses at their tax responsibility as does residential building.
In my next letter, I will expound on my theories of "at risk" home owners who builders just wring their hands waiting to find. We, of course, fell into the trap.
With our wishes for your continued success,
Dick and Julie
Hello! I had written to you about 4 months ago, expressing thanks for your outstanding "New House" book. Thought I'd take a moment to update you! Our home is about two weeks from finished; the entire experience was challenging but exciting and fun; my copy of your book is tattered and marked up with highlighter pen - it was an invaluable reference - AND our builder is recommending it (really!) to everyone he talks to.
One of the most critical points for others to remember is the often-repeated "get it in writing." We detailed EVERYTHING on the contract per your instructions (it seemed almost silly at the time) and are so glad we did. It virtually eliminated the potential for disagreement and dispute. No one had to rely on recollection. Got us off to a good start and a great finish.
Thanks again for a terrific tool. It made every bit of difference to us!
Pam & Joe Kaehler, Wisconsin
Updated: February 20, 1997
We are looking to buy a new production home. I purchased your book. In our previous home we had a soil compaction problem that was resolved after many years of legal dispute. We are afraid of all foundation problems since we were traumatized by our last experience. The problem we have now is that many of the homes we look at have long cracks in the cement floors about the thickness of a dime. We worry that these cracks might continue to open up potenitially ruining the home. Are we over reacting? How can we be sure that we are buying a new house with a good concrete foundation? What kind of expert could assure us that it is a good situation? I know about checking the grading plan but still have doubts about the stability. We are wondering whether the hazard is serious enough to cause us to only buy a used home where we can see what has happened in time. My trust in builders has been eliminated by our past experience. Even the soil testing is in doubt. Thank You, Merv@rain..org
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Mon Feb 10 01:13:24 1997
Thanks for reading our book, YOUR NEW HOUSE. You're right to be scared--as you discovered, a foundation problem can be a financially devasting situation. Our solution: · insist on seeing a soil's test from THAT LOT. Make sure the geotechnical engineer is properly licensed, etc. · Hire a strucural engineer to make sure the foundation plan is appropriate for the soil type. · Pay that enginner to come out to the house when the foundation is being poured to make sure it conforms to the plan. That's the only way--to be involved from the get-go, even with a production home. Coming in after the foundation is poured (or when the home is finished) is more of a gamble: it's hard to know if it was done right. You're correct: you'll only know after several years of settling if there is a problem. Or you can buy a nearly new home (say under five years) and have it thoroughly evaluated by an engineer. As you guessed, that is another solution. Hope that helps! alan & denise Authors, YOUR NEW HOUSE
Several months ago, my wife recieved an advertisement from a real estate agent, regarding an available property. Until that time, we had not considered moving; we thought that we would live in our present house FOREVER! But the fever struck and we started the new/different house hunting adventure. Both of us are professionals (she an anesthesiologist and I a pathologist), and are busy with work and two young daughters, ages 4 and 10. Fortunately, Revonna picked up a few books at Borders Bookstore, rather than pick up a phone and call a real estate agent. Most of the books were rather dry and uninformative, but your book stood head and shoulders above all. It has become THE reference in our quest, and it hasn't let us down. From avoiding the $8100 taxi ride to abiding by the Golden Rule, your book is helping keep us on the path of successful homebuilding. We have aquired a perfect piece of land and are currently working with a residential architect. We have been interviewing builders (they're as predictable as you said they'd be), and are looking for a real estate attorney to review contracts. Thank you so much for opening our eyes!
Several of our collegues have just built houses, and we smile at each other when hearing about all the Bombs they suffered through. We will not be the next victims! We're considering buying copies of your book for everyone involved in the planning, building, and financing of our home.
Keep writing and we'll keep reading! Sincerely, Dave and Revonna Smith Revonna@aol.com
Dear Alan and Denise: Hello from Upstate New York. I don't know if you remember communications with us but we e-mailed and talked about "Our New House". We finally bought your book "Your New House". We/I could not put it down. I highly recommend it to anyone even considering an "encounter" with the construction/real estate/banking industry. We've left our house from hell. I (Bob) left my job in academic medicine to be a corporate medical director (it pays better!). The lawsuit drags on. I'll give you an update on the parties sued. Builder- Joe Pollichemi: filed bankruptcy in New York, moved to Florida. Plead guilty to a reduced misdemeanor charge for falsifying architectural plans (originally a felony) and got probation. The subcontractors with the DA now are after him for grand larceny. Rumor has it he filed bankruptcy in Florida and is coming back to NY to defend himself. We found out he had an errors and omission insurance policy but he did not file a claim and the insurance co. won't allow us to do it. We are hoping that he can be forced to file a claim. Real Estate Co- Gallinger Better Homes and Gardens: claiming they were innocent victims and should be allowed to "puff" their clients. Freddie Mac provided us with information that Gallinger lent hundreds of thousands of dollars to the builder. Gee, I wonder why they lied about the builder to sell his property. They are still fighting us in court Bank-complicated: We originally were approved for the house with OnBank. In the middle of the construction they backed out of the pre-approval claiming we needed a larger downpayment. We recently found out that the builder owed them $451,000! Then Gallinger Real Estate came to our rescue (so we thought at the time). They paid for a new application to a mortgage broker and got the appraised value of the house increased to keep the deal going. They failed to disclose that the mortgage co. was owned by Gallinger. The mortgage is now held by Freddie Mac who is just now threatening to foreclose on the property (we haven't paid a payment in two years). According to Freddie Mac's chief counsel, because Gallinger's mortgage co. and bank in Rochester they got us the loan with committed fraud in the application process, Freddie Mac is going to push back the loan to the Rochester bank. This may give us a better chance to defend ourselves against a bank that committed fraud instead of Freddie Mac. Town of Manlius and their Code Enforcement Officer: They asked to be removed from the lawsuit for two reasons: they have no responsibility to us as individuals and we did not file a claim within 90 days. Well the Supreme Court of NYS stated that there was no way we could have known about the problems within 90 days of buying the house and that the town was responsible because the code enforcement officer made promises to us to inspect the home in detail and required the builder to submit a second set of corrected plans. The judge assumed that he never inspected the house because he issued the building permit after the house was 3/4 built and the two plans submitted for the permit and then the certificate of occupancy were for another house and were falsified. They are appealing. Our attorney thinks we will lose the appeal because courts never hold municipal inspectors responsible. Home Builders Association of CNY: they got dismissed from the lawsuit by admitting that their "warranty" was bogus and that they have no way of enforcing what are essentially a standards of performance. They still advertise their "warranty". State Assemblywoman Joan Christensen is helping us and proposing legislation in NYS to protect future buyers. The Attorney General of NYS who has been entirely uncooperative has finally agreed to "look in to" the mortgage co. and the real estate co. failure to disclose their relationship. I'm not encouraged by them. We were wondering if you had any suggestions? Would anyone in the press that you know be interested? Our story touches on almost every aspect of corruption in the industry. There is so much more to our story such as the bribe from the real estate co. for them to sell our house without disclosing the flaws, the builder bringing an old code enforcement officer to testify to the corruption between builders and inspectors that has gone on here for years, etc. We are looking forward to hearing from you. Bob and Anne Corona ----------------------- Headers -------------------------------- Sun Jan 26 08:13:07 1997
'Alan and Denise: First let me compliment you on your book, great going. Now to the serious topic. My wife and I are presently building a new home. We inquired of the builder about house wrap (ie.Tyvek). He related to us that since we are putting vinyl siding on they could not apply house wrap because it would not allow the vinyl to breath. The builder is applying the siding directly to the OSB board. It is my understanding that Tyvek allows moisture to escape and any moisture that accumulates escape through weep holes. Please correct me if I am wrong in my thinking. Thanks, and keep up the good work. ----------------------- Headers -------------------------------- Sun Jan 12 19:39:54 1997
Thanks for reading our book, YOUR NEW HOUSE!
To answer your question: I believe you have it right. I'd call Tyvek (the number is in our book) and get any specific concerns answered. I think your builder is wrong, but that wouldn't suprise us! Most hate working with new materials.
You can also check with the manufacturer of the siding to inquire about any problems using that material with Tyvek. Let us know what you discover!
alan & denise
Authors, YOUR NEW HOUSE
I am a Loan Officer in Northern Virginia for Crestar Mortgage Corporation and I love your book. I specialize in Land and mostly Construction/Perm financing and I discovered your book through a customer of mine who was building a home and asking all these incredibly pertinent questions not only about financing but also about the building process. Finally I asked her how she knew all these great questions to ask and she told me about your book. Happily every question she asked about financing I was able to answer to her satisfaction and after reading the financing section myself when I bought your book I was grateful to see that Crestar's Construction/Perm program offers the features you talk about.
I am now getting ready to add on an addition to my own house so have been carrying your book around for reference and as I go through each stage (I'm now picking between architects) I am glad to have your book to refer to.
Good luck and thank you!
Holly Hoopes
Well, I found you on the internet! Thought you'd like to know that the complete text of "And They Built A Crooked House" AND "Crumbling Dreams: What You Must Know Before Building or Buying a New House (or Condo)" is now posted on the internet at http://www.lakesidepress.com We never did put out a second edition of "Crumbling Dreams". As you can see, we've branced out into other books, including one on scuba diving! I am updating the electronic edition of "Crumbling Dreams" and will put in the link to your book. If you could also somehow link to "Crumbling Dreams" on your site, that would be nice; it's at http://lakesidepress/dreams/contents.html Our site also includes FAQ's on the two books. Congratulations on the new edition to your family. Larry Martin ----------------------- Headers -------------------------------- Sat Dec 7 16:37:52 1996
I checked out your web site tonight and found it to be most informative. I may in the future purchase a book or two. I especially like the book on building/buying a home. My belief is that housing prices are about 30% higher than they have to be. Much of the x-tra cost can be attributed to greed on builders, suppliers, real estate agents, and all those who will settle for nothing less than the maximum price the market will bear. We as consumers have a great amount of power to affect products and prices. Remember the Edsel? If consumers could band together and reduce their spending we could effectively control prices. Stop buying cars, and the price declines, stop buying homes and the price declines. I believe that prices are too high for homes, and the quality is not there anymore. I refuse to enter the market, one voice in the wind I guess, and it does not matter if I purchase a house or not. Some other dummy will pay whatever the asking price is. Keep up the good work and don't let them run you off. In many businesses today, lying and cheating are a way of life, everyone knows it, but as long as long as those in the business never admit it, we won't catch on. ----------------------- Headers -------------------------------- Tue Dec 3 21:03:03 1996
Date: Wed, Oct 23, 1996 3:06 PM EDT From: dsernst@mnsinc.com X-From: dsernst@mnsinc.com (Darrell & Sue Ernst) To: adfields@aol.com We are in the process of obtaining a piece of property (in Northern Virginia) on which to build a house within a year. We have been working with a realtor for about a month and are ready to make an offer on this lot. She drew up the contract and presented it to us for signature. At the same time, she presented a 2-page document for us to sign entitled "Virginia Exclusive Right to Represent Buyer Agreement." In this "agreement" a clause was added stating the broker is entitled to three percent of the sales price plus any improvements. Now, during this time, she's also been recommending different builders and mortgage companies to us, but we always reserved the right to choose our own architect and builder. When I challenged our realtor about her commission being based on land plus improvements, she stated she was earning this through the "advice and expertise" she will be offering throughout the construction period (i.e., "consulting with the builder, resolving problems, etc.). Our