Please learn from our mistakes!!!!!!!!
We had a new home built in '00 by DR Horton - a huge company that built 51,000+ homes in '05 throughout the United States. I'm not going to go into all the details here, but it was never a good experience for us. We were led to believe a lot of things that were never true, but the big one was a $4500 premium (in our case) paid for a "wooded lot that could never be developed". Two years later the land started to be developed, which they CLEARLY said could never be touched. We lost 150 or more feet of solid, mature woods, and will have somebody's backyard to look at when the particular lot behind us sells.
We asked for our premium back, and they refused. We begged for a conversation to resolve the situation and they refused more, so more than a dozen of us filed a lawsuit to get our money back, and they didn't even bother to show up to the mediation. Mediation attendance by their side required a court order, which they said just pissed them off. We ended up having to go through a jury trial, which took several years to make happen, and which ended a few weeks ago. They never denied that misrepresentations happened, or even provided a witeness to defend their actions. Pathetic in my opinion. The verdict: For my wife and me, a jury of 12 found in our favor, and we were awarded our $4500 premium - minus a HUGE cut to our attorney, and we will need to see if we get interest on the money we mortgaged. It's not much, but we pursued this because of principle, not money.
So, what's the point of this thread? There are a few key points here if you EVER consider having a house built:
Please, if you ever decide to have a home built, remember that YOU are the consumer who ultimately deserves to be pleased, and that you should expect nothing less than excellence on an investment that will take almost half a lifetime to pay for.
We had a new home built in '00 by DR Horton - a huge company that built 51,000+ homes in '05 throughout the United States. I'm not going to go into all the details here, but it was never a good experience for us. We were led to believe a lot of things that were never true, but the big one was a $4500 premium (in our case) paid for a "wooded lot that could never be developed". Two years later the land started to be developed, which they CLEARLY said could never be touched. We lost 150 or more feet of solid, mature woods, and will have somebody's backyard to look at when the particular lot behind us sells.
We asked for our premium back, and they refused. We begged for a conversation to resolve the situation and they refused more, so more than a dozen of us filed a lawsuit to get our money back, and they didn't even bother to show up to the mediation. Mediation attendance by their side required a court order, which they said just pissed them off. We ended up having to go through a jury trial, which took several years to make happen, and which ended a few weeks ago. They never denied that misrepresentations happened, or even provided a witeness to defend their actions. Pathetic in my opinion. The verdict: For my wife and me, a jury of 12 found in our favor, and we were awarded our $4500 premium - minus a HUGE cut to our attorney, and we will need to see if we get interest on the money we mortgaged. It's not much, but we pursued this because of principle, not money.
So, what's the point of this thread? There are a few key points here if you EVER consider having a house built:
- Google your builder's name and "sucks" -seriously. If any website exists like this, then it means that somebody had to have gone through a seriously hellacious experience in order to establish, design, pay for, and maintain a website to warn other homebuyers. RUN, don't walk away. There are a million homes, homebuilders, and sites available. Hold out for the right one.
- "Production" builders - those that crank out tens of thousands of homes nationwide and use the "operational excellence" business model are not the one's I would EVER recommend to anybody. Look for those who seriously strive to make their customers happy (Customer Intimacy business model), even if it costs a little more. DEMAND references!
- Beware BINDING ARIBITRATION Clauses!!!!!!! NEVER sign one of these. A builder might act as though it's just the standard for the industry, but signing one forces you to give up your rights in the case that they, or a subcontractor screws up. Come on, it will take 15 - 30 years for YOU to pay for this thing, so nobody should ever expect to hide behind a bullshit contract instead of their integrity and work, right?
- NEVER be afraid to add to a contract. Many builders will have self serving, standard contracts. They will probably not ask you if you have anything to add to it for your protection, and will balk if you suggest it. DO NOT hesistate to MAKE them put a promise in writing. The contract should serve as protection for both parties, not only for the builder.
- Visit these websites and search for a builder you are considering as a starting point when deciding on a builder, and don't forget to check in with your local Better Business Bureau and Attorney General's Office. A 30 year investment is worth that amount of homework, at least.
www.hobb.org, and www.hadd.com
Please, if you ever decide to have a home built, remember that YOU are the consumer who ultimately deserves to be pleased, and that you should expect nothing less than excellence on an investment that will take almost half a lifetime to pay for.