Hi all -- a question on new construction closing process. My understanding is that the home inspection (with a licensed inspector) is done first, with the inspector looking at building/apt mechanicals. Next (on a separate date), a walkthrough is conducted (usually buyer and the broker) to look at other issues that are usually more cosmetic (drawers stick when opening, doorstops misaligned, etc).... [more]
Hi all -- a question on new construction closing process.
My understanding is that the home inspection (with a licensed inspector) is done first, with the inspector looking at building/apt mechanicals.
Next (on a separate date), a walkthrough is conducted (usually buyer and the broker) to look at other issues that are usually more cosmetic (drawers stick when opening, doorstops misaligned, etc). During this mtg, a punch list is created and shared/signed off on by a rep of the builder/sponsor.
Finally, a day or so before closing, a pre-closing walkthrough takes place to check off if the items on the punch list have been completed. If they have not, it is added to the contract or negotiated at the closing table.
Is this a pretty accurate representation? Are home inspections and walkthroughs commonly combined into one mtg?
Also, how is the punchlist communicated to the seller/sponsor? Are they required to have a representative at the walkthrough in order to sign off on it?
Thanks!!
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Response by selyanow
over 12 years ago
Posts: 132
Member since: Dec 2007
The sellers broker/representative should walk through with you for the punchlist items and for the final walkthrough to make sure items have been addressed. Depending on what you are buying, you may not need a home inspector but if you do typically it should be done during contract process as the seller will not make the contract conditional on your inspection. A lot of people forgo the licensed inspector if they are just buying an apartment in a development but thats completely your call and can certainly give you much needed peace of mind. If its a new development townhouse or an apartment in a very small building, then its recommended. I hope that is helpful.
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The sellers broker/representative should walk through with you for the punchlist items and for the final walkthrough to make sure items have been addressed. Depending on what you are buying, you may not need a home inspector but if you do typically it should be done during contract process as the seller will not make the contract conditional on your inspection. A lot of people forgo the licensed inspector if they are just buying an apartment in a development but thats completely your call and can certainly give you much needed peace of mind. If its a new development townhouse or an apartment in a very small building, then its recommended. I hope that is helpful.