14/01/2018
New Homes – Assumptions That Can Cost You !
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There’s an ironic duality to assumptions. They are free, but they can really cost you.
A lot of people who are buying a new home (meaning new construction, not just new to them) assume that they don’t need a building inspection. Especially, if they are buying a home that has had phase inspections by an independent Building Surveyor throughout the construction of the home. Or, they make the mistake of not paying attention to the really important things and instead only see the finishes: granite benchtops, wood floors, and glass doors. This can be a very expensive mistake.
For example, we were recently called to do an inspection on a newly built home in a Melbourne suburb. All the various approvals had been received, the Certificate of Occupancy had been issued, and the builder was looking forward to settlement. The home was decent, but was far from issue-free.
Among the issues we uncovered was the fact that there was half a roof tile missing at the end of eight rows of roof tiles above the dining area. Obviously, this was an oversight on the roof tiler’s part. Perhaps, it was a task that didn’t get completed by knock-off time on Friday and was forgotten about over the weekend. Nonetheless, this defect exposed part of the ceiling plaster to the weather and rain, and could have had an expensive consequence.
In another newly built home, the shower base in the ensuite was incorrectly fitted. The water was building up by the rear corner of the shower, instead of running into the drain. If not addressed, the owner would have to manually push the water to the drain in the centre of the shower after every use, or the water would pool and sit and eventually start to smell, mildew or both. Not exactly something earth shaking but definitely a pain in the neck for the owners. Who would expect that of a house with a higher price tag? You’re supposed to get what you pay for, right?
While it’s true that newly constructed homes come with a seven-year builder’s warranty, it’s more advantageous for the buyer if these items are discovered before you hand over your money. Why? Because the builder will have much more incentive to get the items in question corrected. He or she wants that payday at settlement. So, it’s to your benefit to be able to use that payday to ensure timely action on the part of your builder.
I’m not, by any means, advocating any unfair or unreasonable practices on the part of the buyer, but being able to use the threat of a delay of settlement is sometimes the only tool a buyer has to get the agreed-upon repairs done before the deal is done. And let’s face it, if a builder won’t get things in gear to ensure his own financial enrichment, how likely is he or she to show up for warranty work after the cheque is cashed? And ALL homes have warranty work, my friends !
The purpose of this post isn’t to try to scare you away from newly built homes. Just keep in mind that a home inspection is intended to help protect you, the buyer. The Inspector doesn’t care if the granite benchtop goes with the splashback. He or she is trained to focus on more important factors. The Inspector may not find much, if anything, but not having a home inspection could end up being a very expensive gamble. One of those free assumptions that can really cost you.
