Lots of Estimates, No Guarantees..

Ever feel like you can't get a straight answer out of a new home sales person? In a typical model home sales office, it is not unusual to overhear conversations like this:

Buyer: "Have you found out when my house will be finished?

Salesperson: "Oh, maybe in about three months or so."

Buyer: "Can you give me something more specific? I am talking to my loan agent about when to lock my interest rate."

Salesperson: "Well drywall just went up, so maybe it'll be sooner. The construction schedule says they're shooting for end of August. But that could change."

Buyer: "You know, I have to know the date in order to plan our move, and I'm also getting nervous about interest rates going up. My wife is losing sleep over the timing, because the kids need to start school, too. Is there anyone I can talk to that can get me some definite time frames?

Salesperson: "I wish there were, but homebuilding is not an exact science. We're at the mercy of this construction schedule and sometimes the schedules are off because of things that can come up. We'll just have to keep you posted."

The level of frustration of that imaginary (but believable) homebuyer will undoubtedly build by the time he gets an almost-definite, "as-close-an-estimate-as-possible" answer from the new home sales person. Even then, however, it may not be the end of the hair-graying experience of closing escrow and moving. Why is it that the new home salesperson, as positive and confident as he seemed to be about helping you decide on a floor plan, home site, and architectural options, now seems to be the master of side-stepping some pretty important questions?

There's obviously is a lot more to homebuilding than making out a construction schedule and then sitting back, expecting everything to happen as written. Most production homebuilders "sub-out" the various disciplines or construction trades to different companies. One company digs the trenches, pours the footings and pours the foundation. Another roughs-in the plumbing, another the electrical, another the framing, and yet another the drywall. The list goes on and on, right down to the cleaning company that prepares the new home for its buyer walk-through orientation by doing a "final clean" for proper presentation.

In other words, building superintendents can schedule every detail as the home progresses right down to the last paint touch up, but there is never a guarantee that all those hundreds of people and companies that take part in the finished product will: (1) show up when they're supposed to, (2) do the work right the first time, without having to be asked back, and even, (3) stay in business. If any or several of these links in the chain become weak, it can throw a construction schedule off until the builder remedies the situation. True, sometimes time can be made up, if the builder has construction personnel working on weekends and holidays. (Kind of like taking off from San Francisco late, but making up time in the air before the plane reaches JFK). But with the building industry suffering (as many other industries currently do) from a lack of skilled tradespeople, it's not as easy as it sounds.

Now let's throw in inclement weather, slow-moving building permits, and backed-up inspectors. The weather is the one impediment everyone is powerless to control, of course. Concrete cannot be poured in the rain or snow, and framing is not advisable and downright treacherous in those conditions. Depending on how many new homes are being built in a particular locale, local building authorities can stack up permit requests, leaving the builder unable to touch the home site.

Some of the reasons homes get delayed are actually "good problems," however. If a particular city has inspectors who demand nothing but near-perfection from homebuilders they serve, it can mean better quality to the consumer, even if it is a virtual thorn in some builders' sides. Keep in mind, however, that in most areas, inspections are done at various stages during the home's construction, such as foundation, frame-complete, with electrical and plumbing in place, and again when the house is finished (the all-important "final"). Without the sign-off of these inspectors and their timeliness, delays can and do occur.

Now that I have painted a picture of some of the disasters that can strike construction schedules, take heart. Most builders have a handle on how long it takes them to complete a new home brimming with all your design center option selections. They can't afford to "sit" on the home too long, with land hold costs piling up and new buyers champing at the bit to begin more homes in the neighborhood. They have just about the same amount interest in getting the houses finished as their buyers do, but with much more money at stake. Most new home builders can give a near on-the-money estimate of the week you can expect to see the home complete from as far out as 30-45 days, with it downright pin-pointed at about two weeks before.

As a new homebuyer, preparing yourself for the worst, but hoping for the best is always wise. Allow at least 5-7 days as a "cushion" between when the builder says the home may be ready and your actual move, just for good measure. Your salesperson can advise you on anything that may be causing delays so that you can try to operate within a reasonable time frame. If you look carefully at your purchase agreement, there are probably all sorts of clauses protecting the builder from buyer recourse against them for unavoidable delays, such as weather or building strikes, but there is usually an estimate given somewhere as a general time frame. It is rare, however, that a builder will guarantee a definite time for completion unless the home was mostly complete at the time it was purchased.