The minute you become a homeowner, whether your new home is a 4-bedroom colonial or a tiny condominium, the nibbling at your wallet starts. $19.95 for a towel rack; $400 for a family room rug; $65 to get the fireplace cleaned. And thats for a normal home, in relatively sound shape.
What if, because of a series of unfortunate lapses and mistakes, youre now the proud owner of a real blood-sucker? What if, instead of the refuge from the cold, cruel world you THOUGHT you bought, your new abode turns out to be the ultimate money pit?
If you thought signing that huge note at settlement was your finest Maalox moment, read on for two cautionary tales. The Dibblers (not their real name) bought a lifestyle of stress and litigation along with their new house. Brookes landscape contractor was a bit off in his estimates more than 50% -- and she got to do part of the work herself in the end, finishing touches like digging out excess concrete from her new terrace.
WILDLIFE ON THE INSIDE
Donna Dibbler and her husband found a 23-year-old home they liked in Baton Rouge, Louisiana. Like good consumers everywhere, they arranged and paid for a home inspection, adding a Home Owners Warranty for good measure. Their friendly real-estate agent recommended a termite inspector, who unfortunately discovered and drove out only some of the resident termites. At settlement, the home inspection report was mysteriously unavailable. After two uneventful weeks in their new home, a kind of around-the-clock nightmare began for the Dibbler family.
For starters, the sewer line appeared to empty under the backyard in-ground pool, spewing out noxious material which caused the pool liner to sink. But the worst water damage was to the rear portion of the house mold, mildew, flooding and rats. Mrs. Dibbler made new friends at the Department of Public Works, the Department of Agriculture and the Louisiana Real Estate Commission.
What happened? The house is still a mess, is barely habitable and certainly isnt something the Dibblers can sell. And the Dibblers court case? It's somewhere over the rainbow -- many months before the first hearing. Perhaps a mobile home until then?
THE AMAZING JUMPING DECIMAL POINT
Brooke and her husband already had a nice house in Washington, D.C.; it just needed a little fencing and a back terrace. She found a local contractor to build a wood railing in front along with a terrace and small stone walls in back. The cost for both jobs was estimated at $4,700.
Well, after Brooke came up with $3,500 for the deposit, the contractor upped the estimate for the backyard work from $3,500 to $4,500. Refusing the familys suggestion that he finish the front railing but forget about the backyard, the contractor continued digging out the backyard, discovering that no, $4,500 wouldnt quite do it. The backyard work would now cost $6,000.
In the end, Brooke and her husband forked over more than $10,000 for what started out as a $4,700 job. Heeding the Surgeon Generals call for Americans to be more physically active, they also got to dig out excess concrete from the terrace themselves. And the contractor? According to Brooke, he stops by the house to collect another $1,700 and has threatened to take down the front railing. Apparently good fences dont protect you from the guys who built them.
Reading about other peoples house and garden disasters can make you feel lucky. The trick is to make sure nothing like this ever happens to you. Sometimes home inspectors, home-improvement specialists, landscapers, etc. arent what they appear to be and you can spend years recovering both financially and emotionally from a bad decision.
LOOK BEFORE LEAPING
Here are some steps you can take to avoid the unsatisfying role of victim:
When purchasing a house, get your own home inspector.
Youre more likely to get an unbiased opinion on the true state of the house from someone who isnt depending on a realtor to feed him/her business.
Get and read the home inspection report well before settlement.
If theres some reason its late or unavailable, postpone the settlement. This is probably the largest purchase youll make in a lifetime; it shouldnt be rushed and most definitely shouldnt be completed without the crucial inspection report.
If you choose to have an attorney represent your interests when buying a home, get one who specializes in real estate.
Its much more likely that a specialist will be familiar with laws and remedies designed to protect you. Ask around for a reference, or call your county or state bar association. Most have lawyer referral services at no charge.
If youre thinking of contracting for some home improvements (inside or outside,) first gather all the information you can on the project you have in mind.
Talk to friends or neighbors whove had similar work done; pick their brains for problems or suggestions. Check some books out of the library and read up on whats involved in your project. Then get at least three reputable contractors to give you written estimates. When you choose a contractor, insist on a written contract. Dont forget to ask about time-frames and cost-overruns and make sure the contract addresses those issues.
Avoid handing over a large deposit to any contractor.
Holding onto your checkbook is the best way to ensure the job is done properly. You may have to pay for materials ahead of time, but dont make any final payments until the work is completed to your satisfaction. Supervise the work as closely as possible and mention any problems before they become unfixable.
Dont be too proud or busy to ask for help.
Whether you need upfront advice on planning or emergency advice on getting a refund for shoddy work, there are lots of consumer resources out there, from state agencies to the attorney generals office.
If youre financing the work, dont do it through the contractor.
Banks and credit unions generally offer home improvement loans at much better rates than the contractor. Also, you have much more control over the funds, giving you more control over the contractor.
Have a lawyer review your home improvement contract.
If you are spending thousands to build a pool or add a room, it's worth a few hundred more to be certain the legal bases have all been covered.
Speaking of pools, be certain you know and understand your legal responsibility to be pro-active in avoiding death or catastrophic injury if you build a pool. A pool is the most dangerous feature of any home and can cause untold human misery and financial ruination, just to be mention a few.
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