Homebuilders Association offers advice on avoiding poor quality home

MAT-SU -- When a homeowner buys a sub-quality home that wasn't inspected, or wasn't built by a licensed contractor, or both, Mat-Su Homebuilders Association president Ron Burkhardsmeier says there isn't much that can be done after the fact.

"When they call and ask 'What can I do?' I can only have empathy for them," he said.

Aside from some possible legal ramifications, after a home is bought and paid for, it can be difficult to hold the builder liable for cut corners and poor workmanship. Even during a build, some homeowners can be frightened away from making a fuss by the builder's threats of a lien against the homeowner. A lien allows a builder to take and hold or sell the property of a debtor as a security or payment for a debt or duty. Builders can use this against someone buying a sub-quality home by threatening to take the home away if the buyer complains or quits paying for poor workmanship. Burkhardsmeier said this scare tactic is one of the reasons some homeowners end up with low-quality homes.

"Most get stuck signing a contract and not having the work performed or performed sub-standard," he said. "There are limitations on a lien, and you have the opportunity to be heard in court … The judge may even award money to you.

"Some end up paying for something sub-standard; they pay the contractors but the contractors didn't pay the subcontractors," Burkhardsmeier said. "The subcontractors go after them, and then they end up paying for the work twice."

Burkhardsmeier said that especially in the Valley, where growth is high and code enforcement is low, buyers should be wary of homebuilders, and make sure to check credentials.

"Because we don't have code enforcement out here like they do in Anchorage, any contractor can build with a level, a pick-up and a gift of gab," Burkhardsmeier said. "Somebody could build a chicken coop in Timbuktu, and suddenly call themselves a homebuilder."

Alaska law allows individuals to build one home a year without a contractor's license, and although Burkhardsmeier stresses that there are quality builders without licenses out there, many of them are actually scam artists.

"When I hear these things, I just cringe, because these people give the industry a bad name," Burkhardsmeier said.

Burkhardsmeier said he thinks the statute surrounding unlicensed home building is weak, and that there are ways to legally boot out these unqualified builders.

"The law should read that they should have to live in the house one year before they sell it," Burkhardsmeier said.

Both Burkhardsmeier and the association's office and marketing manager Emma Markley had ideas on how to protect one's self from purchasing a low-quality home:

Ask for past client referrals.

Ask if the contractor has cold-climate housing courses, and how long they have built in Alaska.

Make sure they are licensed, bonded and insured (this can be done through the state of Alaska Web site).

Make sure the contractor has residential endorsement.

Get a lien release before making the final payment on a home.

Check to see if the contractor is a member of the local homebuilder's association.

Markley said that checking with the association is one last step to protect against a sub-quality contractor.

"It's not just a simple fill out the form and you're in," she said. "We do quality checks, they are scrutinized by their peers."