Michael's View: Pennywise But Pound Foolish...

Pennywise But Pound Foolish...

http://www.completehomeinspectionsonline.comHow many times have we heard that old adage? And, most of us have been guilty doing this a time or two, I know I have. But how about when I comes to having a new home inspected? Many folks tend to forgo this phase of the home buying process because they trust that the municipal codes department has done its job and and has 'inspected the property' several times prior to issuing the CO (Certificate of Occupancy). Just because a property has been issued a CO doesn't mean that it is problem free.

Yesterday, I had the opportunity to inspect a 4 year old property in the Franklin, TN area. From the outside, the property looked great, and I thought "Piece of Cake". Shouldn't find too much wrong here. Boy was I wrong!

The more I inspected, the more I found. Most were piddley nickel/dime items that could have been easily repaired had the property undergone an inspection at the time of initial sale. However; there were several major construction flaws that were revealed. These repairs will now cost the seller several thousand dollars to repair. Not exactly what they had in mind in this tough economy. Can they go back on the builder? Hard to say, as it has been 4 years and provided too that the builder is still in business. As we all know, this downturn in the economy has taken out a lot of folks in the real estate business. Nashville TN home inspections, complete home inspections inc brentwood tn

Needless to say that the seller was not a "Happy Camper". They wanted to save money and decided to forgo the inspection as they bought into the lie, that this (property) "has been inspected by codes, so there will not be any problems". I have yet to see a "Codes" inspector go into the crawl space where most construction deficiencies are found! So, when purchasing a new construction property, don't be Pennywise and Pound Foolish. The cost of having an inspection on new construction is minimal as to compared to what you may have to spend down the road. Let's face it, the builder paid the subs to do the job, right? Have the repairs done on their nickel, not yours...

Y'all have a great day... ;-)

If you or someone you know is purchasing a home in Brentwood, Franklin, Nashville, Spring Hill or Thompson's Station in the Davidson or Williamson county area of Middle Tennessee and would like more information about getting a home inspection, give us a call at 615.661.0297. You can visit us online at www.completehomeinspectionsonline.com - Check out our monthly newletter
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This posting and the contents herein is the intellectual property of Michael Thornton, CEO of The Complete Group. We provide the highest quality service in the areas of home inspections and videos/photography for the web, corporate, businesses and the real estate industry. Complete Home Inspections, Inc. and Creative Video Concepts serves the Brentwood, Franklin, Nashville and the area surrounding Davidson and Williamson County TN. This post is a contribution to the ActiveRain Real Estate Network.

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Comments

Michael,

Great advice! I always tell my new construction clients to plan on an inspector just like with a resale home. There are so many things they will uncover and you can get the builder to make the corrections before closing! 

Posted by Dorie Dillard RealtorĀ® Canyon Creek NW Austin TX homes for sale (Coldwell Banker United Realtors) about 3 years ago

Michael, I suspect they forego the step for the same reason people don't want to go to the doctor.  They don't want to know the truth!

Posted by Kevin Cavanaugh Associate Broker, ABR, GREEN (Keller Williams Hudson Valley Realty) about 3 years ago

Thanks for the tip!  I never thought new construction would need an inspection as much as an older home would. 

Yet another reason to read posts on Activerain...  thanks for sharing your expertise!

Posted by Jim Scheller - ABR, SRS, e-Pro, GRI (Bridge Realty - Mankato) about 3 years ago

HA.  The home inspection on my new home in 2006 produced a 4 page punch list. 

It took the builder 3 weeks to make the corrections. 

A U&O in my market area merely means that the property is safe to occupy. 

I wouldn't buy a new home without my inspector involved and I wouldn't sell one without recommending the same thing for my home buyers.

Posted by Lenn Harley, Real Estate Broker, Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) about 3 years ago

ToulaRosebrock.comHi Michael:

Yikes....you definitely get what you pay for...

Posted by Toula Rosebrock -Broker/Sales Associate, Realtor, Lacey Township, Ocean County, (NJ, Diane Turton, Realtors, Forked River, NJ) about 3 years ago

Michael, I use to sell a lot of new construction and it doesn't surprise me at all that buyers don't want to inspect new homes. Like you said, penny wise, pound foolish.

We had one couple inspect, thank goodness and the dry wallers had nicked a pipe in the laundry room, water went everywhere. I was so happy they inspected BEFORE moving in. It was corrected before closing without a lot of mess.

Builders are human, subs' make mistake.

Buyers should have an inspection on EVERY home.

Posted by Missy Caulk-Ann Arbor-RealtorĀ® Ann Arbor Real Estate (Keller Williams-Ann Arbor) about 3 years ago

Dorie, Most wise folks do get an inspection, however, many do not because they want to save a few dollars. Winds up costing them in the end though...

Kevin - What is a doctor? - LOL...

Jim, Many houses constructed during the "housing boom" are now on the market. Many of them are in the condition of the house I just inspected...

Lenn, Smart - Very Smart...

Toula, you certainly do... 

Posted by Michael Thornton - Nashville, TN area Home Inspector - 615.661.0297 (Complete Home Inspections, Inc.) about 3 years ago

i've said it before and I'll say it again...Don't skip the inspections! New construction does not mean perfect construction!!! I say inspect for your own information even on As Is sales - the informed buyer is the happy buyer.

Posted by Paddy Pizappi PineBush & Hudson Valley NY Real Estate (RJ Smith Realty Real Estate Solutions) about 3 years ago

Missy, I have seen all sorts of issues with new construction. Most folks are glad they invested in one...

Paddy, You are so right! I hate doing "AS IS" inspections. I know that I will be there a lo-o-o-ng time...

Posted by Michael Thornton - Nashville, TN area Home Inspector - 615.661.0297 (Complete Home Inspections, Inc.) about 3 years ago

But at least the buyer has full knowledge of the problems when you leave Michael.:)

Posted by Paddy Pizappi PineBush & Hudson Valley NY Real Estate (RJ Smith Realty Real Estate Solutions) about 3 years ago

Michael, thanks for this post. I recommend that buyers do a home inspection on new construction, but your post just gave me an idea.

I have a friends who is building a new home and he has a lot of problems with the builder. My friends is totally clueless when it comes to Code or other things. It might be a good idea to have the home inspected before he makes the last payment to the builder.

 

Posted by South Beaches Real Estate Professionals about 3 years ago

This is great info for everyone.  I never would have thought of having a home inspection done on a new property.  I continue to learn!

Posted by Mary Ann Miller (Long and Foster) about 3 years ago

Inspections are so important.  Foolish if they don't get one!

Posted by Cindy Edwards CRS GRI PMN Northeast Tennessee 423-677-6677 (RE/MAX Checkmate) about 3 years ago

Michael, it used to be agents that encouraged buyers to forgo new construction inspections----that is pretty rare now----at least I don't hear about it the way I used to.

Posted by Charles Buell, Seattle Home Inspector (Charles Buell Inspections.com) about 3 years ago

Michael,

New houses and water in the crawl space. We see a lot of that around here.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 3 years ago

We live in unincorporated Harris County and it has been a free for all here for years.  It is amazing that I still find it hard to get people to understand the importance of having an inspection done on a new home.  If they won't get one I make them sign a paper that says I recommended it. 

Posted by Marchel Peterson Spring TX Real Estate E-Pro (Results Realty) about 3 years ago

Kind of like not having title insurance....kkind of dumb if you ask me.

Bo

Posted by Bo Hussung (Netco Title) about 3 years ago

When the building boom started in earnest here in late '03 everyone that could swing a hammer was a builder.  No experience? No problem. Just slap 'em together and a buyer will come.  I've heard from many folks over the years that decided to forgo the inspection and later found very costly mistakes.  I don't know what you charge, but the $400ish fee (here) for an inspection is chump change to what it could cost later. 

Posted by Fairbanks Alaska Real Estate Specialists Jesse & Kathy Clifton 907-328-9328 (Jesse Clifton & Associates, REALTORSĀ®) about 3 years ago

I have all buyers sign a notice, "For Your Protection Get a Home Inspection".  

If the builder is still around and I were the seller I would make a case for getting something from them, after all, their reputation is on the line.  But another old adage comes into play, "An ounce of prevention is worth a pound of cure".  They should have had it inspected 4 years ago.

Posted by Mike Nastri Franklin TN Homes (Keller Williams Realty) about 3 years ago

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