‘Buyers need to be aware’: North Carolina homeowners upset over half-built homes deteriorating for months in their new developments — how to avoid buying into a permanent construction zone

Homes sit unfinished for months

“Doesn’t look good, does it?” said Dolphus Lee, a Marine veteran and homeowner in a similarly half-built neighborhood in Statesville. “I'm upset, but ain't nothing I can do about it.”

Homeowners have heard little from the developers.

But contractors, including masonry and roofing companies, have filed lawsuits against both Nest Homes and Helmsman Homes, with claims that the developers owe them a combined total of $1.7 million.

According to Iredell County’s director of building standards, the companies have shuttered and the remaining properties are now owned by mortgage companies and banks.

That leaves homeowners like Oleksy and Lee — who've waited months hoping their subdivisions will be completed — in limbo. Now, there's light at the end of the tunnel.

Another developer has stepped in to finish building the homes in Olesky’s neighborhood. Homeowners like Lee hope something similar will happen in their subdivisions.

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Tread carefully when buying a new-build

The situation is instructive for anyone looking to buy into a new subdivision.

“Buyers need to be aware of buying into a neighborhood that’s not complete,” attorney and real estate expert James Galvin told WCNC.

“You can’t treat that purchase the same way as you’re treating a purchase in a finished neighborhood. You’re going to really want to kick the tires.”

Here are some tips on how to do your due diligence on a new development.

Seek out reviews of the developer to get an idea of how homeowners like working with them. Consumer review sites like Consumer Affairs often have customer reviews on popular builders.

Request a copy of the developer’s financial statements. Comb through the details to confirm whether the company can afford to finish building and maintaining the community.

Be wary if the HOA fees are especially low. That’s because developers own the HOA until the development is completed. Low HOA fees may indicate that construction is stalled.

Look for lawsuits in the builder’s past, ongoing litigation or signs of financial mismanagement. You might even consider hiring an investigator to dig deeper.

Take red flags seriously.

Finally, if you decide to move forward, keep a solid emergency fund on hand. If something goes wrong, you want to be able to rent a place to call home until you sort out any unexpected issues.