OT: closing on a new home

[Gsinill]

Never closed on new construction but we hired a lawyer for all our other closings/refis and I would NEVER close without one.
At least here in IL you're having a sore arm from signing gazillions of documents after you're done.
Given the legalese, the few hundred bucks spent on having an expert review the paperwork before closing to avoid signing your life away is worth every penny IMHO.

Also, my wife has some kind of legal assistance as part of her benefits at work and so far they covered the lawyers as long as it was for our primary residence.

[pdonk]

Originally Posted by jlwdm

A red flag.

If you are in a really strong builder's market I guess you can get away with it.

Completely normal here. No builders would allow inspections during construction. You do have a few opportunities during construction to tour house. For context these are not custom homes but homes in large master planned communities. Also for context we have very strong consumer protection and warranties on new homes.

As a minimum make sure to:
Turn on all taps at the same time to confirm water pressure and that hot is hot and cold is cold
Flush toilets
Buy a circuit tester and check ground on every plug
Turn every light switch on and off
Turn main breaker on and off.
Turn breakers on off one at a time and confirm circuits
Highlight all drywall issues. Popping screws, bad mud or taping
Open and close all windows.
Identify trim gaps
Check for floor bounce and sqeeks
Check all handrails to make sure they are sturdy
Turn on furnace and blowers. If baseboard turn them on.
Turn on ac and blowers.
Check all appliances.

Ask for copies of municipal inspection reports and occupancy permit

[Dave B]

Where in Indiana are you building?

[ColonelJLloyd]

I don't understand why a realtor would be in any way necessary in your situation. Buy a book, read some websites, ask others and engage/hire an experienced real estate attorney.

Hell, after 10 years I'm ready to sell my first home and I do not plan to use a realtor. I know way more about my house (and homes and building in general) than most any realtor, especially someone who switched careers 5 years ago and, in my market, demand is such that it seems things are in my favor going without a realtor. I'll engage an attorney and go from there.

[kookmyers]

If you are going to engage the service of a realtor, do so for a fixed fee. Completely negotiable and in no way related to the percentage of the "value" of the home.
Why are realtors fees still percentage based? This is something that needs to change in our society.

[paredown]

I would get a pre-closing inspection for sure--and roll that in with a punch list that you prepare with the builder.

I have yet to be on a construction site yet where there weren't a bunch of little things that the builder's crew missed or forgot, and even though there are 'inspections' by the local controlling jurisdiction to ensure it is being built to code, this really doesn't tell that much--especially issues with finishes, cabinets, fixtures etc--none of which are inspected and all of which need a close scrutiny. Pdonk's list above is a good start for things to check.

I would not go to closing without the punch list (and any other concerns) being addressed--easier to get them back while they want you to close.

[jlwdm]

Originally Posted by kookmyers

If you are going to engage the service of a realtor, do so for a fixed fee. Completely negotiable and in no way related to the percentage of the "value" of the home.
Why are realtors fees still percentage based? This is something that needs to change in our society.

They aren't all percentage based. If you pick the right Realtor you should get what you pay for.

Jeff

[MerckxMad]

that involves the purchase of land and a structure, and possibly taking on debt. You need a lawyer.

[dbrown]

Originally Posted by Ken Robb

Who drew up the contract you signed and who is holding your deposit?

The builder wrote the contract. He also has the deposit.

[dbrown]

Originally Posted by pdonk

Completely normal here. No builders would allow inspections during construction. You do have a few opportunities during construction to tour house. For context these are not custom homes but homes in large master planned communities. Also for context we have very strong consumer protection and warranties on new homes.

As a minimum make sure to:
Turn on all taps at the same time to confirm water pressure and that hot is hot and cold is cold
Flush toilets
Buy a circuit tester and check ground on every plug
Turn every light switch on and off
Turn main breaker on and off.
Turn breakers on off one at a time and confirm circuits
Highlight all drywall issues. Popping screws, bad mud or taping
Open and close all windows.
Identify trim gaps
Check for floor bounce and sqeeks
Check all handrails to make sure they are sturdy
Turn on furnace and blowers. If baseboard turn them on.
Turn on ac and blowers.
Check all appliances.

Ask for copies of municipal inspection reports and occupancy permit

We will have a pre closing inspection. This list will be very helpful.

[dbrown]

Originally Posted by Dave B

Where in Indiana are you building?

We are moving from 96th St/ Fall Creek Blvd. area of Indy to Greenfield.

[p nut]

Sheesh. The point where I feel I need a lawyer to represent me, is when I need to find another builder. Take a couple hours to read through the docs. Ask questions to your agent (assuming you were working with a builder sales agent), your loan officer or title guy. Lots of fine print but nothing too complicated.

[ColonelJLloyd]

Originally Posted by p nut

Take a couple hours to read through the docs. Ask questions to your agent (assuming you were working with a builder sales agent), your loan officer or title guy.

Or pay a professional who does this for a living $300-$1,000 (just guessing) to do this for you. With what's at stake I think I'd be more comfortable paying a professional to know what I don't know. This is more akin to having a CPA prepare your taxes than hiring an attorney to file a suit on your behalf, don't you think?

[p nut]

Originally Posted by ColonelJLloyd

Or pay a professional who does this for a living $300-$1,000 (just guessing) to do this for you. With what's at stake I think I'd be more comfortable paying a professional to know what I don't know. This is more akin to having a CPA prepare your taxes than hiring an attorney to file a suit on your behalf, don't you think?

Sure, definitely. Just saying I've read through a lot of the loan/title docs, contracts, and they're pretty straight forward. Nothing to be intimidated over. I think taxes and lawsuits are infinitely more complex, personally.

[Ken Robb]

Originally Posted by dbrown

The builder wrote the contract. He also has the deposit.

It would be a good idea to interview a real estate attorney to see what help/advice you might need. Does the contract provide for you to receive title insurance? In some locales sellers routinely provide it to protect buyers and in other areas buyers have to pay for it themselves.Every lender I ever heard of in my 36 years as a real estate broker required a borrower to provide title insurance to protect the lender's interest.

As a real estate broker I would never get into a deal that has already been negotiated to give legal advice. That is lawyers' work. A broker can write offers and help construct escrow instructions as part of his negotiating activities. These provisions may or may not be reviewed by lawyers but that would be unusual in California residential deals where the vast majority of contracts use "fill-in-the-blanks" forms provided by the California Association of Realtors.

In your case we can only hope that your contractor is a real gentleman guided by old-fashioned midwestern ideals. And that may very well be the case. I miss those days. Heck, that might be why I retired 10 years ago.