Apr. 25, 2007 - New Construction Punch List
My last couple of clients have purchased new construction townhomes. The builders are offering some pretty good discounts in this tough market and my buyers are getting some very good deals.
New construction does carry with it some concerns that are not involved with resale properties. One of those concerns is "The Punch List". Here is a question I found on a public forum regarding the punch list.
"Is there a standard time period for the builder of new construction to complete the "punch list'? My lawyer told me I should close on a new house to prevent the builder for taking me to court for delaying the closing due to some items not completed that the builder called a punch list. I considered the items more significant than a punch list, but I didn't want to take the risk of court expenses if I lost".
I felt that the buyer of this home sounded somewhat reluctent to proceed. I also felt that sounded somewhat under represented and so I answered like this:
"Any new construction contract should contain a time line for when certain things should happen. Because your Attorney has been hired by you to look out for your interest in the deal I am sure they have READ the contract, as you should have done yourself. I understand your concerns, as buying a new home (even a used home for that matter) is a huge investment and something that you do not do every day. That is why we hire people who do deal with these kinds of things on a daily basis. I'm not saying that there are not shylock builders out there, there is good and bad in all professions, but a reputable builder, with a proven track record, will do everything they can to keep the customer satisfied. Having punch list items to take care of after closing is very common. On new construction there will most likely even be issues that arise after you move in, however, you should have a builder warranty, and that would cover that. In most States giving the warranty is mandated by law".
I hope I helped to ease their worried mind. That's what a good REALTOR® should be able to do.
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