Having issues with a home builder

[Panthro]

I would run not walk away from this deal. It's going to be rushed with shoddy workmanship...and builders can do annoying things that you will not catch onto right away.

[Niner National]

I would run not walk away from this deal. It's going to be rushed with shoddy workmanship...and builders can do annoying things that you will not catch onto right away.

Yeah, I can't imagine the poo that goes on while having a house built.

I bought a townhome that was already built and it was a nightmare enough. My closing date got pushed back several times and all we were dealing with was paperwork and a home inspection.

[Anybodyhome]

We finished having our custom home built in Shallotte 3 years ago this month... right when the market turned. Had owned the land for some time and when things went south I knew I could get a better price per foot. The builder filed bankruptcy 6 months after our house was finished, we sued for the remaining portion of the warranty shortly thereafter and got an entirely new warranty that essentially gave us a 2.5 year warranty on the house.

[thefuzz]

Calm down everyone.

There are many things that have to go on for a builder to start a home, especially when they are financing the construction phase of it.

First you have to have all paperwork signed, then inspected with a fine tooth comb, then submitted to the powers that do inside of the building company.

Second, after the builder has confirmed that you actually have the money, credit, debt to income ratio, and cash to be able to close they will give the go ahead for the home.

Then the builder must file for a construction loan, and purchase the lot from the developer.

Then the builder has to apply for permits from all the proper channels.

Then the builder has to arrange for sub contractors to be there on time, and deal with the weather conditions that so often get crazy this time of year.

DR Horton is not a pick up truck builder, and unless you cut him a check for 40K or more, all of those things take time. Then multiply all of those things times 20. Which is probably how many homes they are doing the exact same thing with.

[Montsta]

I've worked for a home developer for the last 6 years, and this seems kind of absurd to me.

[Montsta]

Calm down everyone.

There are many things that have to go on for a builder to start a home, especially when they are financing the construction phase of it.

First you have to have all paperwork signed, then inspected with a fine tooth comb, then submitted to the powers that do inside of the building company.

Second, after the builder has confirmed that you actually have the money, credit, debt to income ratio, and cash to be able to close they will give the go ahead for the home.

Then the builder must file for a construction loan, and purchase the lot from the developer.

Then the builder has to apply for permits from all the proper channels.

Then the builder has to arrange for sub contractors to be there on time, and deal with the weather conditions that so often get crazy this time of year.

DR Horton is not a pick up truck builder, and unless you cut him a check for 40K or more, all of those things take time. Then multiply all of those things times 20. Which is probably how many homes they are doing the exact same thing with.

I work for a home developer, and this is not how we do it at all.

[Floppin]

My dad owns a contracting and construction business in Boone and I worked for him and other contractors for over 12 years, there is no reason that poo like this should be going on. If your house isn't a priority for them, then they are either over loaded and underhanded or some other fuged up poo is going on. Either way, this isn't "normal" operating procedure, or at least it shouldn't be.

[Montsta]

I can't speak on how DR Horton works but when my company has a release (used to be 10-15 house pre-2007, now it'll typically be 4-5) they have already received permits for everything necessary to start building well in advance. We can then build a house in 90 days, 120 if it is one of our larger ones over 3200ish sq ft. That's from the trench date (grading), through the pour date (foundation), and into the snap date (framing). Our subcontractors that perform each task are well aware of our release date prior to the house being sold, and are ready to go. They have already bid on the work for the homes in that release and signed a contract, so there should be no delays in work, sans weather problems. Once you are approved and have given us your check, you will go to one of our design centers where you will pick paint, granite, tile, stainless appliances, etc. if it is not a builder standard then you will be notified of the price difference at that time. This also includes structural changes like wanting a guest room instead of an office. You will be given a printout detailing all of your selections that is signed by you and our design center rep, and you will at that time give them a check for any add-ons you selected such as jenn-air appliances, or Brazilian granite, etc. That option sheet is then sent via FedEx overnight to our office the very next day, reviewed by our purchasing and construction dept, and then sent in triplicate to our site superintendent, who will give it to his assistant supers, as well as any and all pertinent subs. It is down to a science and again, barring weather, you should have a house in exactly 90 days from the day they pour your post tension slab foundation until the day you do your buyer walk through to check for any flaws we may not have noticed. All permits have been paid in advance, and the inspector checks things off in sequence as the project progresses. This includes foundation, framing, electrical, plumbing, drywall, final livable dwelling.

If I were you I would get the hell out of your contract and find a builder that appreciates your business a little bit more.

[Floppin]

The most likely scenario in all of this for me is this:

All major contractors have a set group of subs that they use primarily and this large builder will be no exception and one of two things is going on

A) One of his primary framing subs, the one he's contracted this job to, is running behind finishing his current build, hence the delay

B) Your contractor has taken on to large of a work load and is having to rely on an unproven subcontractor who is subsequently spinning his wheels and not starting work and will subsequently be fired, or has already been fired and someone else has been hired hence the "Will definitely start this next week" email.

[Floppin]

Either way, the builder needs to honest with you and quit jerking your chain. This is why I abhor most huge building companies like this, they could really give a poo less about your satisfaction in the long run.

[Montsta]

To add on to what Floppin said above, we've had rare circumstances where the rough carpentry sub (framers) have tried to tell us that with the extreme lumber price fluctuations, the bid that they put in for the release is no longer sustainable due to market fluctuations. This is because they know they have us by the balls and even if we sue them for breach of contract, they'll just dissolve the company and the delays will reflect poorly on us. Granted, they know they'll never, ever do business with us again, but sometimes contractors get into dire straights and know they won't make any money on three months of work so they do what they gotta do. This is extraordinarily rare, but can happen.

[thefuzz]

I work for a home developer, and this is not how we do it at all.

How many homes does your guy sell per year? That is the difference.

Also it it impossible to pull permits, or have construction lending in place unless you are building spec homes, which he did not purchase.

He selected his floorplan, not picked what some builder had sitting on the ground.

I work with one of the largest builders in NC, and I can promise you this is normal.

[thefuzz]

To the OP.

How many days ago did you get final loan approval, and get it to the builder?

How many days ago was the final contract signed by all parties?

[MadHatter]

The builder does not have the ready cash to build your house, that's the issue. He's going to try and build a couple empties, sell those at a discounted rate just to get some cash in pocket to build your spec house. I'm guessing you have a bunch of extras added to the base home, which means he has to go get specific products instead of using the usual materials and he won't get his quantity discount.

Sure, there are plenty of builders out there wanting to work, but the big builders are getting killed because they have a lot of inventory on hand which is costing them money and the last thing they want to see is someone walk in the door wanting a custom home, or a standard design with a ton of upgrades.

I think you are wrong. DR Horton is not a small buidling contractor with money concerns. They are a very large national home builder. I doubt cashflow is the issue.

If they are sitting on a lot of inventory, then they would NOT be building additional spec homes instead of the one that is already sold.

Something else going on....but the above is not it.