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Old 10-08-2010, 08:13 AM
 
14 posts, read 98,561 times
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I'm concerned and thought maybe someone could share some insight.

My husband and I are set to close on our home on 10/12. It is a new construction and we were informed that the home is complete yesterday afternoon. I had been waiting to hear the date of the final walk-through, but the builder informed me that we would have to close on the home first, then wait for the power company to finish their hookups. He is saying that after all of this is done, we will have a final walk-through.

This will be the third home purchase I have made, and I have never gone to closing without having a final walk-through beforehand. I'm thinking, "What's the point, if we've already taken ownership?"

Has anyone ever heard of this being done? I guess I'm wondering if there is a way to protect ourselves from the builder just leaving us hanging with any repairs that may need to be done. We have been inside the home already, and we know that there are several cosmetic issues that need to be addressed. The builder doesn't want a list or anything until the final walk-through, though, when there will supposedly be one of his representatives present.

Is there a way to include some sort of documentation during closing stating that we still have the right to have issues addressed? I'm just worried because we won't even be able to test the lights or appliances until after the power connections are made.

Thanks in advance for any feedback.
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Old 10-08-2010, 08:29 AM
 
Location: Austin
7,244 posts, read 21,801,403 times
Reputation: 10015
This doesn't sound like a production builder you're working with. But either way, do not close on the house prior to a walk thru and punch list with a builder. And why isn't your agent pushing this through the proper channels of the builder for you?
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Old 10-08-2010, 08:31 AM
 
Location: Marion, IN
8,189 posts, read 31,227,984 times
Reputation: 7344
DO. NOT. CLOSE.

Do not close until you do a walk through AND all of the punch list items have been addressed. I can not stress this enough to you. If you close you have accepted the house.

The electric is not even hooked up and the builder expects you to close? YIKES!
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Old 10-08-2010, 08:36 AM
 
Location: Austin
7,244 posts, read 21,801,403 times
Reputation: 10015
By the way, you have to have all utilities connected for the builder to receive a CO (certificate of occupancy). Without the CO, your lender, more than likely, will not fund the loan. You're going to go in circles. The ball is in your builder's court and he knows what he needs to do and basically trying to get you to fall for something you shouldn't.
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Old 10-08-2010, 08:47 AM
 
14 posts, read 98,561 times
Reputation: 14
Thank you for the quick responses. I think I already knew the answer to this, but I just needed an extra confidence boost to make the call I need to make..ha! I am not going to close until after we have been given our final walk-through and all of our issues are addressed.

Falcon, the story on our agent is a long and exhausting one. I won't bore you with the nightmarish details. I am just ready to be done with her altogether. I will say, however, that I would hate to see how she conducts business with people who are difficult and impatient. Hubby and I have been more than patient with her during this entire process...but then again, maybe that is the root of the problem!

Thanks again!!
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Old 10-08-2010, 08:54 AM
 
Location: Fuquay Varina
6,448 posts, read 9,805,568 times
Reputation: 18349
I hope you got an inspection as well. Even a new home might have something not completed or done wrong.

We bought new contruction and our inspection found little things I would not have noticed. I looked at it this way, I can pay the inspector to find things and have the builder fix them on his dime. WHen I eventually sell the house I don't want the next inspector to find something that I would have to cover when it should have been done right the first time.
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Old 10-08-2010, 01:07 PM
 
1,174 posts, read 6,942,393 times
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Also, don't believe the builder when/if he says that you don't need to worry about a walkthrough and any defects because you have a warranty on a new home. It'll be fixed under the warranty after you close and move in.

Although it's good that he does warranty his workmanship, it's only as good as his word. What do you do when he disagrees that a defect is truely a defect? What do you do when you call, and call, and call to get him to come out and fix a problem but he never shows or keeps giving excuses and putting it off?

Do you sue? Do you want to have to go through that? What if the cost of repairs is significant to you but doesn't rise to the level of hiring a lawyer? The answer is that you're stuck. You're in the position of being at the builder's whim . . . and he knows it.

DO NOT CLOSE until you have a final walkthrough with a very critical eye. DO NOT CLOSE until the problems you find are fixed. You may not find everything that needs to be fixed, but at least you will have done everything within your rights and power to minimize problems down the road.
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Old 10-08-2010, 01:27 PM
 
Location: Boise, ID
8,046 posts, read 28,467,288 times
Reputation: 9470
Quote:
Originally Posted by SVTLightning View Post
I hope you got an inspection as well. Even a new home might have something not completed or done wrong.

We bought new contruction and our inspection found little things I would not have noticed. I looked at it this way, I can pay the inspector to find things and have the builder fix them on his dime. WHen I eventually sell the house I don't want the next inspector to find something that I would have to cover when it should have been done right the first time.

I couldn't agree more. My parents have been custom homebuilders for almost 20 years, and they recommend an independent inspection on every house they build. They even had one done on the house they built for themselves. Sometimes the inspectors just find small odds and ends (like having hot and cold valves reversed in the shower, which is pretty common), sometimes they find bigger stuff (like not having insulation ever blown into the attic, which gets missed on occasion), but they usually find something.

And I agree. Walkthrough is done BEFORE closing, and all utilities should be on in the builders name at that point. I'm not even sure what "hookups" the power company would need to still be doing at this point. In my area, we get a temporary power meter shortly after the foundation is poured, and a permenant one about a month or so later (assuming a 90 day construction window, which is on the short end on custom homes). I believe the power company is done at that point. The electrician does the rest. The power company doesn't need to come out at any point in the last 60 days (unless they do the electrical inspections for the building department in your area, which I suppose is a possibility).

I also agree with Garth. Even if your builder is honorable, and has the intention of repairing the items on your list, it is FAR easier to get the subcontractors necessary out immediately (read as: before they have been paid) to fix problems, than it is to get them back out 3 months later, when they are on to other jobs and have to squeeze it in between other things. It is also far easier to repair when the house is vacant than it is when you have to coordinate schedules with the builder, homeowner and subcontractor.
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Old 10-08-2010, 10:55 PM
 
Location: Cold Frozen North
1,928 posts, read 5,164,996 times
Reputation: 1307
Quote:
Originally Posted by FalconheadWest View Post
By the way, you have to have all utilities connected for the builder to receive a CO (certificate of occupancy). Without the CO, your lender, more than likely, will not fund the loan. You're going to go in circles. The ball is in your builder's court and he knows what he needs to do and basically trying to get you to fall for something you shouldn't.
This is exactly correct. I had a similar situation with no electric power in a new subdivision when I bought my custom built house 16 years ago. The town would not grant a certificate of occupancy. Without the CO, the lender will not fund the loan. My closing got delayed for 2 weeks until the subdivision was 'lit up' by the utility.

In fact, there were 2 other closings in that subdivision that were being held up for the same reason. The builders actually asked the new home owners to call the utility to pressure them to get power on so they could close. I actually called the utility, but not sure how much difference it made.
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Old 10-08-2010, 11:02 PM
 
Location: Texas
44,254 posts, read 64,338,536 times
Reputation: 73931
Exactly...how can you even INSPECT the house without the electricity on?
That makes no sense.
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