Quality and Warranty

Many builders have developed formal inspection procedures. Building inspectors, warranty insurance companies, FHA, VA, or your lender may also inspect the home. However, no matter how strong the commitment of the builder and all the inspectors, the desire for a high-quality home will be strongest for you, the eventual owner.

No matter what the price of your home, you may reach a point where your standards exceed everyone else’s. Or you may not have the technical knowledge to judge the quality of every stage of the work and question if it is done well. Trust and information are vital to your peace of mind at such times. For perspective on this important subject, keep these points in mind:

Building codes make no distinctions based on price. Code books do not include one set of regulations for homes up to $200,000 and another for those over $200,000. Codes require that all homes meet the same level of health and safety.

Codes make no attempt to set standards for aesthetics. Many steps in construction allow the builder and the buyers to exercise their discretion. Quality in such areas is based on experience, pride of workmanship and the ever-present budget.

Price differences often show most notably in size and features. The more expensive the home, usually the larger and more complex the design. The list of features in a $597,000 home is longer than that of a home costing $125,000. For instance, the master bath of the former has a jetted tub with a fancy faucet. Tile walls surround the tub. Beside the tub is a spacious walk-in shower, enclosed by clear frameless glass panels. The cabinets have solid wood doors, drawers and frames, and provide lots of storage space. The master bath in the second home includes a fiberglass tub with a chrome faucet. Tile surrounds this tub also. The buyers select from eight colors, none of which include hand-painted accents. A shower rod comes standard, but space limitations prohibit a walk-in shower. A single cabinet beneath the vanity offers some storage space. Its painted doors have no hardware. Although different in appearance and price, the plumbing to both tubs must work without leaking. Neither tub should have chips or gouges. The tile in both baths must meet the same standards. In time, grout and caulking in both baths will need maintenance by the homeowners. The cabinet doors should all operate smoothly and be level. They will all show variations in the way the wood is finished.

THE STATE OF NEW MEXICO DOES NOT REQUIRE A CONTRACTOR TO OFFER A WARRANTY.

At closing, your contractor will provide you with any manufacturers’ warranty documents for the new appliances. Mechanical systems such as water heater, furnace and air conditioning/swamp cooler also carry a manufacturer’s warranty for varying lengths of time. Ask to see any other warranty the builder may choose to provide for your new home AT THE TIME YOU SIGN THE PURCHASE CONTRACT.

Most purchase contracts will contain:

An arbitration clause that essentially states if any (or all) dispute(s) may arise, you will not have the option to go to court to settle your differences. Instead, disputes are decided by an arbitrator. This is generally recognized to be faster, cheaper, and simpler than going to court. Consult an attorney and decide if you are comfortable with this concept BEFORE SIGNING THE PURCHASE CONTRACT. You should not be surprised to be requested to sign a form stating you have read the arbitration clause and understand its impact on your legal rights.
If your contractor builds more than 10 homes a year, you can expect to see a clause that requires arbitration to be done separately for each home; in other words — no class action suits. If you are having your home remodeled this clause is less likely to be included.
If your contractor offers a warranty, you should expect to see information on this included in the Purchase Contract. If it is not mentioned, you should not assume your contractor is offering a warranty.
If the Purchase Contract does include a warranty, ask for a copy of the warranty up front, and review it before you sign the Purchase Contract. Warranties generally cover some items for one or two years, and structural issues for up to 10 years. The length of time each category of items are “warranted” for is generally stated in the Purchase Contract. Warranties never cover issues such as paint color or floor coverings. These are considered “cosmetic” and not structural.