02-12-2013 10:06 AM
My offer was recently accepted on a new construction condo. Being that it is a new construction, some of the amenities are not completed yet by the developer (i.e. carpet installation in the rooms, appliances need to be installed, bathroom fixtures need to be installed, and ceiling fans/lights), some of this they said we could choose/customize. One of the contingencies of the contract was that an inspection must be completed within 7 days of the contract being accepted.
Should I have my attorney negotiate to have the inspection done after the condo has been completed? Is that possible? I'm worried that I will have to pay for an inspection before and after everything is done. I also don't want to run into any problems simply because I didn't get the inspection done in time.
I am using an FHA loan. Not sure if this matters.
Any advice would be helpful.....Thanks
02-12-2013 11:27 AM - edited 02-12-2013 11:31 AM
I used to work with New Home Builders.
Unfortunately, some people think New construction - No problem - Wrong
Definately, have your lawyer negotiate to have the home inspection done when everything is completed.
You should not be penalized requesting this as your contract states you are entitled to have an inspection
done, if everything is not in place to do this it is not your fault.
You want to make sure everything is hooked-up, installed & running properly.
Some of the problems buyers would run into would be (just to name a few):
1. Leaking plumbing
2. Damage to walls done after installations
3. Equipment/Appliances not being hooked-up properly
4. Electric not working properly on items
Your New Home Builder will have a punch list off items after all of the installation is done needing
to be either fixed or repaired.
I would have your home inspector in after the punch list is completed. They will do a more thorough job.
Please, before you close have your own inspector.
02-12-2013 01:17 PM
Thank you for all of the information your provided and the advice as well. I am going to see if I can have my attorney negotiate having the property inspected after everything has been completed.
02-12-2013 05:50 PM
As Liza stated, wait to have the inspection done until the unit is complete. In new construction there are often a few odds and ends that aren't complete and get added to the inspection report. However, in your case there are too many incomplete items. I've done far too many new construction inspections where a lot of systems were so incomplete the whole affair was just a waste of everyone's time and the buyer's money.
I've gone back on a number of re-inspections and items that were supposed to be 'no problem' or 'no big deal' by the developer that ended up being serious points of contention.
Also I unfortunately have to say that new construction also tends to have more problems than vintage. In vintage homes, issues tend to revolve around poor maintenance or age typical deterioration. In new construction issues tend to revolve around non-compliance or construction defects.
If this is a CMU, split face block or cement block type building I suggest you do some research and understand some of the issues with this type of construction in Chicago. You may also want to look into how many units are sold, if and how many units the developer still has control over and if an association has been formed yet or not.
I have some articles on my website under the 'About your home' tab you may find helpful.