Buying a new prefab house is not a walk in the park. I wish I could say that it's a bit like buying a house built on a site, but it isn't. In fact, it is completely different from buying a new house built on site, because the majority of the protections that buyers of houses built on site are simply not there for buyers of new houses.
A new home buyer is left to his own devices to ensure that his new home is built, installed, funded and insured properly. In this article, we will help you do that by sharing our top tips for new home buyers.
The process of buying a house on site
Buyers of a house built on site or even a prefabricated house on land through a real estate agent benefit from several protections throughout the buying process 39; a house.
First of all, you have a real estate agent who works on your behalf and only on your behalf. They have (or should have) no connection with the sellers or the bank. This ensures that you are represented fairly.
Second, once the offer is accepted by the seller of the house, inspections will take place. These will be hired by the home buyer to guarantee that no affiliation to the seller or the seller's real estate agent occurs. Inspections will be carried out by professionals approved for termites and foundations. A thorough inspection of the electrical and plumbing systems will take place. Every square inch of the house is inspected and the buyer receives a booklet full of pictures and detailed descriptions of what the inspector has found.
If problems are detected during inspections, the buyer will ask the seller to repair or replace the problems before exchanging the money. If the seller refuses, the buyer can usually walk away from the transaction without wasting time. However, most of the time, the seller will fix the problems until the buyer is satisfied.
In short, the buyer holds most of the power throughout the process of buying a house built on site. Purchasing a new prefab house is a completely different process. When buying a new prefab house, the dealer owns most of the energy, which is one of the main reasons why it is known that it lies and manipulates buyers. They know the ball is in their court and they are used to having uneducated consumers who are easy to handle and trust.
Our top tips for new home buyers
Our best advice for new home buyers is simple: hire 3 professionals.
First of all, hire a prefab house agent or professional who will act on your behalf during the home buying process. Second, hire your own installers and make sure they are the best you can get. Finally, hire an inspector who will inspect the house after it is installed and before the bank hands the money over to the dealer.
With these three professionals, you offer the same protections as an on-site home buyer.
Hire an agent
When you buy a new prefab house from a reseller, you don't have a real estate agent or any party working solely on your behalf and in your best interest, unless you hire someone and the most do not. This is why hiring a professional to help you with the buying process is our first tip for new home buyers.
The seller is indebted to the dealer and not to the buyer. They are there to make sure that the dealer makes the greatest profit possible while selling you a home.
This means that it is up to the buyer to hire an agent or professional to work on their behalf during the process of buying a home.
Hire an installer
Every new prefab house has to be installed, but the builder doesn't conveniently install his own house (although I think they should). The buyer must choose to call on the dealer's internal installation team or an outside team who always gives them a refund. This is why we always advise new buyers of prefab homes to always choose their own installation company after doing a thorough reference check.
This means that it is up to the buyer to hire their own installation team.
Hire an inspector
Our third piece of advice to new home buyers is to hire an inspector. The only inspections that are usually done are for the finance company and they just want to make sure the house on the documents is the one the buyers get. They rarely do a thorough inspection.
This means that it is up to the buyer to hire their own inspectors.
If you're in a state with a lot of prefab homes like Florida, South Carolina, Texas, Arizona or California, it shouldn't be too difficult to find a real estate agent or agent who will help you. to find the best house at the best price. Typically, they will want to be paid a percentage of the sale price or a flat rate. In some cases, they will make a deal with the seller of the dealership (but not often). Either way, it's a good investment.
Hiring the best inspector is a bit like hire the best contractor. You'll want to check out the references (and actually call them!), Their experience with prefabricated homes and if they have ties to the dealer. A Google search is also a good idea.
You will want an inspection done as they do with a house built on site with some differences, of course.
First of all, the house should be checked for level so that the inspector must have and know how to use a water level. The house should be checked at each corner and in the middle of the longest sides. You can read more about the water levels and check the level of a prefab house here.
Extra care should be taken to inspect the wedding line if the house is double width. The grade of the terrain must also be checked. You can read more about the site preparation and HUD recommendations for the note here.
Our article, Find out why a prefab home inspection is so important, will help you choose the best inspector through the national associations and will review several questions that only concern prefabricated houses.
Once you've hired your inspector, be sure to be on the property during the inspection. This also applies to installers. You must be there when the house is pulled over the property and the installers are installing the house.
If you hire these three professionals, your home buying process will be much smoother. If 80% of all warranty issues are really caused by improper installation, then hiring the right installer and inspecting their work will give you the protection you deserve.