Buying New Construction? Pay attention to this!
In recent months a few of our clients who purchased new construction within the last year have been reporting trouble with their builder/seller that issued a warranty in the contract, but is not honoring it. Whether it’s the sub-contractors that don’t respond or the now bankrupted builder, the buyers are having a tough time getting someone to respond and correct warranty items. Anyone who is purchasing new construction then, would do well to close the transaction AFTER all the punch list items are complete, even if it means a longer close, and not rely on the warranty to cover after-close issues. It might be well to purchase a 1 year home warranty available for about $300-400 from an independent warranty company.
We will be advising all of our new construction clients of this and require, in the contract, all punch list issues to be handled before the closing papers are signed.
Lynette Hensley
Associate Broker
Here are the January 2009 Real Estate Market updates for King, Snohomish and Pierce Counties:
