New-House Concerns
Are Quite Common

Question: I am thinking about purchasing a spec home that will be completed in about two months. I am not using a Realtor, and I am having a hard time getting the builder to come down in price. My lender told me that I should have some wiggle room because the builder won't have to pay any commission on the sale. Do I have to pay the asking price? Also, should I use a home inspector?

-- Eric, Dallas

Eric: You definitely should use a home inspector -- even with new construction. The tendency is to think that because the house is new, there won't be anything wrong with it. But this isn't always the case. Problems can arise due to poor maintenance, or from supplies that have worn out. For example, shingles that have outlived their useful lifespan can cause roof leaks. Poor construction is a second area for concern. Improperly installed underlayment beneath tile shingles can cause leaks with the first rain.

Have an inspector check the house for shoddy construction and make the builder correct any problems before you move in. Many builders encourage buyers to come in and examine the construction at various stages -- not just after the home is finished. If you have this option, take advantage of it and hire a professional inspector. Hopefully you'll learn that your home is exceptionally well made. But if not, you'll at least know what the problems are.

Some builders also give buyers a one-year "bumper-to-bumper" warranty on the property. If this is the case and you trust the builder, you may want to move into a property with minor problems in the anticipation that they will be corrected shortly thereafter.

Regarding the price, it's important to remember that everything is open to negotiation in real estate. If the builder has a lot of homes sitting unsold, he may be willing to knock down the price to move them.

-- Mr. Irwin has more than 25 years' experience as a Los Angeles-area real-estate broker. He is the author of more than two dozen books about real estate and is recognized as one of the most knowledgeable writers in the real-estate field. Mr. Irwin's most recent book is "Tips and Traps When Renovating Your Home," (McGraw-Hill, 2000).

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