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Richmond American Homes; feedback?

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Anonymous
Not applicable

Richmond American Homes; feedback?

Hi guys. My wife and I are finally in a position to buy our first home Smiley Tongue

 

Of all the builders in the Denver area (and we have seen model homes from pretty much all of them), we like Richmond's floor plans the most. They are exactly in line with what we're looking for. Everything seems very high quality but of course model homes always are that way. I always had a good impression of Richmond but I don't really know anyone who owns a house built by them so I have heard no first hand experiences.

 

Do you currently live in a Richmond-built home or know someone who does? I have seen some negative online feedback but I know that everyone with a positive experience usually doesn't randomly post about it.

 

LMK know what you know! Thanks.

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12 REPLIES 12
IOBA
Senior Contributor

Re: Richmond American Homes; feedback?

A friend of mine bought one of their homes.   Good experience.   Took them a little longer than expected to finish the home and my friends had to give up their apt.   The builder let them store their stuff in the unfinished garage for 2 weeks (they stayed with family).

 

One day or one week, exactly after the warranty expired, the upstairs toilet starting leaking on the dining room table.  They called whomever and they came out and fixed the problem for free.  Smiley Happy   Even thought it was past warranty.   

 

Since some builders are going out of business, see what you can find about their financials and check with the BBB in your area.

 

Congrats!  Smiley Happy

Message 2 of 13
Anonymous
Not applicable

Re: Richmond American Homes; feedback?

Thank you! We got married 5 years ago and it has taken that long to save enough for 25-30% down plus a reserve for furnishings and upgrades prior to move-in, so we are very excited at being this close to finally owning a home.

 

Good idea on the BBB and financial records. They seem to have an A+ rating. Their file shows 144 complaints with 117 resolved and others 'closed administratively'. SEC filings look pretty strong as well for Y/Y growth. If we go with them, I will be asking for a strict contract including clauses for completion within the time committed, and possibly an extended warranty. Buyers hold the power in this economy and I intend to use it.

 

ADDITIONAL QUESTION: Is there an advantage to going through a realtor when buying a new (built upon order) home?

Message 3 of 13
IOBA
Senior Contributor

Re: Richmond American Homes; feedback?

In my opinion, no there is not.

 

Some of the builders will allow it and SOMEONE (you or the builder) has to pay the realtor a commission on the deal.   It is usually tacked on, slyly, to the cost of the house, because the builder knows you have a realtor who is expecting to be paid.   Other builders say up front that they will not pay a realtor commission.

 

The cost of the custom built house is rarely negotiable.    They sit you down, you pick your lot, your pick your floor plan, you pick your features/add-ons.  The builder usually offers bonuses (in concessions, like no closing costs, or no HOA fees for the first year, or a finished media room, etc) if you finance through them/their lender.   There really isn't a lot for a realtor to do in this situation to earn a commission.

 

It's been my experience in talking to builders that they will not lock into a completion date because there are so many other uncontrollable factors.   But you can try.   If they say completion in March, then you can comeback with, if we have not closed on or before March 31, there will be a $100 per day taken off the final price.   (It's a great tactic that most builders/sellers will not agree to....but some will!)

 

Next question please.  Smiley Happy

 

 

Message 4 of 13
IOBA
Senior Contributor

Re: Richmond American Homes; feedback?

PS - take the time to read through each and every complaint against them so you have an idea of what has upset people in the past and how the situation was resolved.   Well worth the time to be informed when you go to talk to them.

 

PSS - Once, I did take a realtor with me to talk to a builder.   She was already familiar with them, Beezer, and knew they would pay her a commission if she brought customers.   I didn't buy from either the builder or the realtor.

Message 5 of 13
Anonymous
Not applicable

Re: Richmond American Homes; feedback?

Thanks! I did have another question but you've answered it already; it was whether builders ever negotiate on new homes. Really hoping we get to prove you wrong though!

 

Good idea on the $100/day discount.  Will definitely be going that route; I can't imagine the buyer having no recourse against construction delays.

 

QUESTION: How long are pre-approved mortgages valid for? RAH wants to see proof of mortgage within 30 days of buyer acceptance (agreement to buy). Or is it possible to use the GFE for that purpose?

 

Our FICO scores:

 

Mine: 764 TU/704 EQ/755 EX (FAKO)

Wife: 805 TU/768 EQ/EX FAKO unknown

Message 6 of 13
Anonymous
Not applicable

Re: Richmond American Homes; feedback?

I have to disagree here.

 

You have every right and reason to use a realtor.  Now, if you are building a custom home on your land, that may be one thing, but if you are buying a home in an existing division, you should be able to have your own representation.  The builders pay a commission to their sales people and that sales commission is split with your realtor same as it would be with any home sale.  Just make sure your realtor is OK with that because they may have to do a bit more negotiating between them and the sellers agent/salesperson on the commission % as it may be a point or two lower than normal.  That said, it is usually a pretty easy transaction for the realtor so a slightly smaller commission is no big deal.  I have never heard of (not to say it does not happen) a large builder doing subdivision that would not allow an outside realtor.  The bottom line is that plenty of people get screwed over by builders due to lack of separate representation.  Also, the percentage of fees available to the realtors is set aside ahead of the sale.  Sellers agents or builders salespeople do not like to split this, but that is their job.  There is this myth that using the sellers agent saves money when in most cases, the sellers agent just gets a double cut.  YEs there are occasions that the sellers agents agrees to handle both parties and reduce their commission to get a deal done when the number are tight, but they rarely offer that upfront.  Only at the end if they are afraid of loosing the deal.

 

Price is still negotiable on these as market dictates.  They can tell you the price, upgrades, etc, but if you tell them you will do 5% less or you will walk. 95% of the time they will find the room.  You can not lowball them like you would a private seller or a reo though.  Of course if the division is selling out or the market is hot this goes away, but not many markets are that hot right now.

 

Last, as far as timelines.  Builders will typically (at least in my experience) give you an approximate end date with some realistic figures thrown in the mix.  For example, 90 days expected build but 120 max build time.  It is fully understandable to put in a maximum into the contract with penalties.  Understand that some bulders will say no and some will only agree to it on generous terms (meaning in a timeframe they are sure they can finish).  Most are not going to agree to a strict timetable with no room for delays and a penalty to boot.  

Message 7 of 13
IOBA
Senior Contributor

Re: Richmond American Homes; feedback?

Mickie had some great points.

 

* never use the seller's agent as your own -- they represent the seller, not you.   For example, you have Kathy as your realtor and she takes you to a house she has just listed on the  market.  That is a conflict of interest.  She's representing the seller and she's representing you.   She earns double commission if you buy  her listing.    My experience, going with the realtor to a builder was there really wasn't anything for her to do.  And she said so.   The builder has already set prices for things...

*which brings me to another point Mickie  made -- ASK for things when you sit down and do the house deal!!  It doesn't hurt to ask or try to negotiate!   It is rare that they do, but it's worth the try especially since it's a buyers market.  Smiley Happy

 

Think about the financing you want to do.   The builder already has preferred lenders that they have deals with.   Thus the incentives they can tack onto the deal.   If you go with your own financing, most will be ok with the pre-approval now and the closing in 3 months or so.   Just tell them you are having  the home built.    Oh yeah, and ask them about their policies on that.   One of the things I hated about the idea of using a builders lender is they use their own appraisers so naturally, the home will appraise for the purchase price!  Smiley Mad    I never felt that was a real honest, or ethical, appraisal.  Especially when only one or two homes in the development had been closed on.   Your own appraiser will probably give you a better perspective of the true value of the home in comparison.   Remember, you have two different appraisers appraise the same house and come back with different numbers and use different comps.

 

Talk to a bank/credit union and see what they say.   Then talk to the builder and see what they say before you make any decisions.

 

And don't do anything that would jeopardize the deal!  I was showed a house that was custom built.   Then the wife quit her job like less than a week before closing and they lost the house.   Why?   The lender verified employment a second time right before closing.  Found out she was NOT employed and they didn't meet the numbers on hubbies income alone.  Smiley Sad

Message 8 of 13
Richmondloser
New Visitor

Re: Richmond American Homes; feedback?

Be aware of Richmond American home loans since they are charging 6k for origination fee as a normal which is 7 times more than normal banks. If you question them (Greg & Gayla) they are very rude and arrogant it is their policy who got incentive from builder from 6 K to 9 K to get back their money. Interest rate is higher than other banks at least .25 %

Builder is fraud & lender is double fraud so be aware before signing any contract with Richmond American homes. If anyone has experience like me, please share so that other folks will know
Message 9 of 13
Catacam
Frequent Contributor

Re: Richmond American Homes; feedback?

We have been in a RA home for almost 1 year now. In fact, our one year is coming up in two weeks. Although I love my house, our service from them has been terrible. We closed over a month late, had to pay for an appraisal supplement (because the home wasn't ready when they said, our whole community (65 homes) is dealing with the City to collect on their bonds because they built the stormwater ponds incorrectly and the $15k fix almost came out of our pockets, about 15 of us have 1 or more mechanics liens on our homes because they didn't pay their subs, and in order to get things done that we were promised, i.e., extra paint, leaning fence, leaking gutters, we had to get on their corporate Facebook page to complain. That is when the local reps jumped.  All of that being said, we do really love our home, but I would warn you that everyone in our neighborhood has been extremely disappointed with them.

CLOSED ON OUR FIRST HOME MAY 30TH!!!


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