Homebuilders are getting a bit desperate, we just get a great deal on a new house

Home and Real Estate
1

If you know David Weekley Homes, you know they build lovely homes. We just signed a contract on a spec home of theirs (or someone built it and couldn’t go to closing… we don’t know) which has been around more than 160 days, listed at $525k, we got it for $485k, but that’s just the start.

Builder subsidized financing… 3% year one, 4% year 2, 5% year 3, 5.5% years 4-30. It’s fixed, but they buy-down the first three years. They pay the closing costs. Their home insurance partner is $500 less per year than Allstate (special discount to Weekley customers for ten years). They are paying the relator fees for the agent selling our old home (also one of their affiliates).

In the old house, I pay HOA, water / sewer, trash, and I pay someone to cut my lawn.

In the new place, the HOA does it all for less than I was paying at the old place. One head to pound, too. And it’s gated, HOA covers that, old place wasn’t gated.

My utilities are going to go way down… tankless hot water heater… the insulation is so good, on a 95 degree day, it was 80 inside the attic. The AC unit is smaller than for an older home of comparable size.

I asked them about the HOA fees… I asked them if Weekley Homes wasn’t buying down the rates to create a “teaser”, and after they’re done building and leave will the HOA fees make a gigantic jump? They said no, the fees are the set the same as similar established communities.

I mean - WOW - talk about customer service.

Now we have to sell the old one. I think we’re going to have to go to the mat on price, it’s slow and a buyer’s market now. The bond market turmoil goosing up mortgage rates is definitely worrying. The only way to cure that as a seller is - cut the price. Buyers shop for monthly payments.

Fortunately, we can close without selling the old one, though it’ll be painful to carry two properties, and I don’t want to rent the old one out, I just want it gone.

2

OH MY WORD my inspector found so many issues with this new build… I’m set back on my heels. Meeting next week with the builder to see how to move forward!

3

On the new place; is it a site condo or is it an HOA with common grounds and individual lot ownership?

Site condos can look very attractive but they come with their own set of problems.

4

Conventional single family dwelling setup. We own the whole structure and the dirt. HOA owns pool, maintains private streets (gated, so not a city responsibility), and provides water, sewer, trash, landscaping which is limited because no yard.

5

Sounds too good to be true. I would want the HOA fees guaranteed in writing. Those fees rarely stay fixed.

6

It’s not fixed. It’s not a teaser, however. That’s all that matters to me

7

well you already bought, so…

HOAs will go from the builder to a HOA committee when the builder leaves. Just an FYI.

If you have not moved in yet - GET IT INSPECTED. There is so much garbage being built.

8

Our inspector found a great deal. We’re meeting today, we’re going to pound the table. There were some terrible things.

Yeah, the HOA isn’t run of funded by the builder, it’s a standalone third party property management company from the inception, which is good.

9

The HOA issue is typical. That’s fine.

I’ve been watching horror videos on youtube from builders out west. Makes me want to swear off home ownership. That said, and I’ll say this for anyone else reading this thread, and I’m putting it in bold:

Just because the county/city says it passed inspection does not mean anything.

I have tread marks. As the home owner you, I, or we own it. Going to give a list here of things I’ve been burned by. I will say this - biggest problem facing large builders today is PATHETIC project management. The left hand does not know what the right hand is doing. This feeds into my list.

  1. If you have gas, make sure all potential areas for gas leaks are checked especially the mains into the house.
  2. Make sure to check your attic insulation. Builders skimp all day long. Or the crew that came in ran out of material early and never mentioned it. While up there, make sure none of your rafting structure is broken.
  3. Check your venting. Every bathroom needs a vent and it needs to vent outside.
  4. Electrical - have someone check your main panel and make sure every lug is TIGHT.
  5. Electrical #2 - consider adding a whole house surge protector. Relatively inexpensive.
  6. Plumbing #1 - where is your water cutoff? My house was built in 1989 and there was none. You WANT one easily accessible.
  7. Plumbing #2 - where is your pressure valve? This is what reduces your supply pressure to something your house can handle.
    You need to know where this is.
  8. Plumbing #3 - Verify all water heaters have catch pans and drains.
  9. Plumbing #4 - same for washing machines. Had one go berserk. $45k later (handled by insurance but not worth the pain).
  10. Plumbing #5 - consider adding leak detection and a main cutoff. You are investing 500k and up.
  11. More plumbing - verify your HVAC(s) has/have catch pans and they drain some place visible.
  12. General rant - you should try to have a REAL range vent in your kitchen, but now I know I’m just being a jerk. 4 years ago, I fixed that problem in my house.

These things should be a no brainer to a builder. If you get any pushback, here’s your sign.

Ocho, wishing you the best in your new house. :slight_smile:

10

We have a ninja home inspector, he’s the absolute best.