New Construction Inspections and Why They Are Necessary
New Does Not Mean Perfect
When I was active as a Realtor, the general assumption seemed to be that inspections were not needed for residential new construction. Having inspected close to 100 new homes over the course of the last year, I have concluded that they are every bit as essential as inspections for older homes. Here’s why:
High Demand
People continue to move to the Dallas-Fort Worth area (AKA, “The Metroplex”), and many prefer the advantages of new construction over existing homes. Builders are hard-pressed to keep up with this demand, and the pressure on everyone in the supply chain from Development Managers on down to framers and painters is tremendous. In this “hurry up and get it finished” environment, the first casualty is quality. Construction Supervisors simply do not have the time or resources to oversee every task, and crew chiefs sometimes give poor workmanship a pass in order to keep management happy, get paid, and move on to the next project. I don’t mean this as an indictment against these people. They work hard and are under a tremendous amount of pressure to produce housing. That construction quality suffers is a natural occurrence in such circumstances.
Changes in the Labor Market
The economic slump of 2008-2010 prompted many skilled laborers to find employment in other fields. With the resurgence in the new construction, home builders and crew chiefs often feel compelled to hire workers with little or no previous experience. Couple this with the difficulties of overseeing the work of these crews, and problems are bound to arise. There is also, unfortunately, a decline in “pride of workmanship” that occurs in this environment. This is sad, because this lack of personal accountability casts a pall on the workforce in general.
Buyer’s Expectations and Demands
Moving from one home to another is often done on a tight schedule, and most buyers are either not willing or able to afford temporary housing solutions if their new home is not completed on time. The pressure is on the builder to deliver “as promised”. Construction Supervisors and crew chiefs find there is little to no appreciation or accommodation for the challenges they are facing. The temptation to “paper over” mistakes both small and large is considerable, but can have far-reaching negative consequences.
Lack of Accountability
Many are shocked to learn there is no licensing or regulatory authority for home construction in the state of Texas. Builders’ contracts provide very little by way of protection for the consumer. Local building inspectors labor under very high work loads and, like all humans, are prone to mistakes and oversights. This puts the burden for getting compensation for deficiencies in the product on the consumer, and few have the resources to get involved in a legal battle with the builder. Even large builders come and go, and once the LLC that was formed to build the home closes up shop, there may be no one who can be held accountable for problems with the home.
With so many factors working against coming out with a quality product, what can a consumer do to protect themselves? Fortunately, plenty.
Choose Your Builder Carefully
On-line reviews and word of mouth are helpful, but don’t hesitate to actually get out and knock on doors in the neighborhood you are considering. Find out how others feel about their homes and their builders. Check with the Better Business Bureau and other consumer advocate groups. Don’t assume that there is a government body looking out for your interests (see above paragraph).
Consider a “Phase Inspection”
Phase inspectors visit the construction project before the foundation is poured, before the drywall is installed, after HVAC systems are in place (AKA “mechanicals”), at other key phases in new construction, and at completion of the project. They provide a back-up for the city inspectors and bring their own experience and perspectives to the process. Phase inspectors must have a thorough working knowledge not only of the new construction process, but of the International Residential Code as well, and know what set of codes the authority having jurisdiction (AHJ) has adopted. Inspectors performing these types of inspections typically charge $200-$300 per visit to the job site. A little quick math reveals that a Phase Inspection can get rather expensive, and requires that the inspector be hired at the beginning of the construction process, so few home buyers are willing to go this route.
Hire a Licensed and Qualified Home Inspector
Most people who hire an inspector for new construction choose the more affordable option of having a single inspection performed prior to the final walk-through and closing. Be aware that many builders place limitations on when these inspections must take place and on what the inspector can access at the property. Familiarize yourself with your builder’s restrictions, and walk away from any builder who does not allow you to have the home inspected by a third party of your choosing prior to closing. Most deficiencies can still be identified upon completion of construction, giving the buyer the opportunity to demand that the builder address them before closing.
Finding an Inspector
The best referral is from a friend or associate you trust. Your Realtor should be able to offer some choices as well. On-line referral sites are another source, but keep in mind that contacting an inspector through one of these sites could cost them money even if you don’t chose them. Better to search their reviews and contact them directly. Believe me, they will appreciate it! Many home inspectors have a background in home construction, and they should go at the top of your list. Resist the temptation to chose an inspector based on price. Some inspectors chose to compete mainly on price because they have nothing else to offer. Find the inspector you trust and feel comfortable with and go with them. Also, resist the temptation to haggle. Even the most seasoned pro will be put off by such an approach, and it’s really not worth the few dollars you will save.
Parting Words
Keep in mind that no builder sets out to build a problem home. It happens for the reasons I have set out and others. Most builders are happy to have a third party to help them be sure their client is getting a quality product, and some even require it. Be very cautious if your builder seems hostile to the idea, or sets up obstacles to a thorough inspection, and take extra care to find out what their policies are in this regard before you sign a new construction contract.
Thanks for taking time to read this article. Please feel free to contact Bruce Ogletree of Ogletree Inspection Services at 214-287-4630 if you have any questions or would like to schedule an appointment.