A not so perfect world
In a perfect world, a home will always be built on time and
to a 100% quality standard.
Unfortunately, we do not live in a perfect world. Forced to sometimes choose between a stated
delivery schedule and meeting a defined quality standard, what would you do?
You may have a contract that states an anticipated delivery
date. While the date is written as a
soft timeframe with more disclaimers than you care to remember, a buyer will
look at that date as cast in stone. That
date, while still qualified, is then most likely reinforced by the builder
during his conversations with the buyer.
Additionally, the buyer will probably be making arrangements based on
that closing date, scheduling moving trucks, furniture delivery and family
gatherings. On a positive note, you can
probably get away with changing the delivery date up to 30 - 45 days prior to
the estimated closing without causing too much heartache. After that, you may have a real problem on
your hands and you may have to consider eating the cost of accommodations and
storage expenses to reduce the inconvenience to your buyer.
On the quality side, you may find yourself in a bind if the
home will be completed on time, but it does not meet the fit and finish
standards that your buyer is expecting at the delivery of their home. A buyer should always expect the same level
of quality in their own home that they see in the model homes. You also want to minimize quality issues to
reduce the level of warranty work that needs to be done to a home right after
closing. No one wants to have to perform
quality repairs after delivery with residents living in the home.
The question, though, was what will you do if you are forced
to choose? My choice would be to
maintain quality over delivery. You may
be able to make up for the inconvenience of a delayed close by taking a
monetary hit to resolve the timing inconvenience. However, you can rarely, if ever, recover
from a lapse in quality. First, if there
are issues at closing, I guarantee you that the buyer will subsequently find a
dozen more perceived deficiencies with the home whether they truly exist or
not. You have already planted the seed
for poor quality in their heads and they will be looking for reasons to
reinforce their negative perceptions.
Second, they will absolutely tell all their friends about how
disappointed they are in the quality of their home and how they have lost faith
in you as a builder. If you are late in
delivery, you can go over the top to work to make it up to them. If the quality is poor, they will always feel
like they are living in a substandard home.
Neither option is good.
Life, though, is not always fair and there will be times when you have
to make difficult decisions. My decision
is to always err on the side of quality.
Until next time…
Keep kicking the dirt!
Jeff Gersh is President of Gersh
Consulting Services, a real estate advisory firm, headquartered in Orlando,
FL. He may be reached at jsgersh@gmail.com
or 407-468-9328
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