Buyer Beware!

     Well, it has finally happened. The proverbial straw that broke the camels back. I can keep silent no longer as they say. I had struggled for some time but still feel strongly compelled to add this page to my website. A trend has surfaced recently in the advertising and marketing of new home construction on Long Beach Island. I feel the general public is being intentionally mislead and deserves to know what has been happening in some instances concerning the local building industry. You can pick up any local newspaper or real estate magazine and see the numerous advertisements, even full page color ads by some builder/developers on the Island showing either a starting price (starting at) for new construction, a cost per square foot to build or a built on your lot for with an advertised price listed. People are being lured into a false sense of what they are going to get a new home built for and what the total costs will be in the end. You never pay just the starting advertised price of a new home, that is fairly obvious. This is usually just the starting point or what some people would call a teaser rate. It is kind of like the old bait and switch tactics that have commonly been used in other sales, marketing or advertising ploys. These are come on ads and these prices are being used to get prospective clients in the door and signed up. These tactics are used to try and lock a consumer or client into a legal binding contract. You can be rest assured that before the ink on that construction contract is dried there are going to be numerous change orders, upgrades or extras tacked on by the end of that build. As far as the square footage formula goes that many people feel is the golden rule or standard to apply, this is never a good way to gauge what you are getting for your money. Lets just say it is easy to manipulate that number. Anyone can throw a number out as far as advertising the cost to build new construction but is it a real or factual number or just one to bring customers in the door? Buyer beware, you get what you pay for. Getting a bunch of vague or empty promises will not result in a well built home or a satisfied homeowner. Getting something for nothing is not the norm and if it sounds to good to be true it usually is. It is as simple as that. If a builder/developer says yes to everything you ask or want and agrees with you on every point that should maybe give you cause to re-think who you are dealing with. Are they really looking out for your best interest while they continually yes you to death or do they just see dollar signs? To think you are getting a great price, deal or discount because of the current state of the economy could not be any further from the truth. Prices on just about everything related to the building industry have increased dramatically for contractors. To sum it up I would say do your homework and be thorough when interviewing perspective builders when planning your next home. Ask for referrals and for addresses of current or recently completed projects so you can actually visit these homes. Take a long hard look at these homes or job sites and ask questions. You have everything to gain and nothing to lose. Be an educated consumer. Since the buy it and flip it real estate market has disappeared and the spec home market has all but stopped area builders and builders from out of the area for that matter are competing aggressively for the new home construction market. Have you recently noticed the amount of vehicles related to construction and the building industry on Long Beach Island? How about the fact that many do not have their name or company name on their vehicles and many are from out of the area and even out of state? Many of these individuals are subcontractors being brought into the area by some of the local general contractor/developers. The construction market down turn has brought people out of the woodwork looking for work in this area. These subcontractors are under bidding many of the local tradesmen. Not to say that they are all unqualified but the bigger question would be who exactly are they? Are they reputable business people and yes are they qualified regarding their specific trade? Are they insured and registered with the state or prospective town they are working in? In addition to the quality of their work where exactly are they after the job is done? Who stands behind their work and can you get them back if need be or do repeated phone calls for help go unanswered? The best builder client relationships are forged on good communication and the client understanding or being educated to the building process. I have recently been bidding on new home construction against others in the trade who have no overhead whatsoever. These so called contractors are akin to phantom builders. Legally they do not exist. They have no insurances, they lack many of the tools and equipment that is essential to getting the job done right. They employ unskilled help who are basic laborers at best. Tragically, they are learning a trade on a home at the homeowners expense. Many wind up leaving the area after a job owing money to local lumber yards and suppliers. Once they are gone they are gone. Developers are getting unsuspecting clients locked in to a low bid contract and hold them hostage to get more money out of them and the home completed. Ask yourself, why the great disparity between estimates? The homeowner at this point has so much time and money invested there is no turning back. You can not get another builder in at this point because they do not want to inherit another builders problems or mistakes and have their name associated with that job and possibly tied up in some type of future litigation. There are many instances where people were so grossly taken advantage of just to get their final certificate of occupancy. These homeowners would usually never admit this publicly to friends, family or neighbors because they feel embarrassed and humiliated and understandably so. Beware of the low bidding developer/contractor who comes in tens of thousands cheaper if not more than other bids. There is nothing wrong with a competitive bid process just make sure you are comparing apples to apples as they say. Take your time and be thorough. Do your research and ask the tough questions. Do not let someone rush you into one of the most costly decisions you may ever make. There are good and bad in all professions including the building trades. There are proven and competent builders in the area. Do not fall for the recent ads stating we live here and are part of your communities so we want the best for you and the area. Many developers/builders have recently relocated to this area for whatever reason and have no history here. Beware of the "Team" approach. They claim to keep everything concerning a build "in house". This only affords more control or in some cases actual manipulation and keeps all monies, "in house" as well! This does not allow for checks and balances for instance between the builder and architect. Where would loyalties lie regarding the team approach? Within the company I would venture to say. They still seem to hire the cheapest subcontractors they can get and are lining their pockets with more profit. They use different subcontractors all the time, so what does that tell you? They have subs bidding and pitted against one another in order to get the cheapest bid they possibly can. Everyone wants to control costs but at what cost concerning quality and workmanship? Are many of these subs a part of their team, I think not. I know of many subs that are owed substantial amounts of money during construction and at the end of a job. They are not paid at times or given only a partial payment. They have been told take it or leave it. If they are not paid in full what do you think the quality of their work will be? What corners will they cut to reduce their costs concerning your house and get out with some profit? Are these so called developers really who they say they are? Remember, many developers or even people advertising themselves as general contractors or custom builders are not builders! They are organizers, schedulers or planners at best. They may have a general knowledge of building, they are versed in the terminology concerning building but they are not hands on. They talk the talk but can they walk the walk as they say? They are rarley physically on the building site for construction purposes and rely on others for many answers or decisions. Just what exactly are they doing to justify their prices and fees? Take the time and effort to seek out reputable builders and best of luck in your endeavors.