Home builder John Laing filed for bankruptcy last week, leaving both current homeowners and those who hoped to be owners of one of their homes with many questions. John Laing is – or was – one of the builders at four neighborhoods in the Springs – Wolf Ranch, Meridian Ranch, Gold Hill Mesa, and Banning Lewis Ranch. Their models in Colorado Springs haven’t been manned for months now, and no one has any idea what’s going to happen with the homes that are still under construction, though the company has assured buyers that their deposits are “secure”. Current homeowners are wondering who’s going to take care of warranty and home maintenance issues that may arise.
With a large company like John Laing filing for bankruptcy and uncertainty about other national builders’ futures, is it wise to buy a new home? Local real estate agent Jeremy Isaac cautions:
“When a national builder halts operations like this it is definitely a reminder to carefully investigate before choosing a builder for any new home purchase. Given the current market volatility, if you want to build a new home in Colorado Springs, I would recommend using a well established local builder since they can’t “pull out” of Colorado Springs.
You should also be very careful to review the builders contract for provisions that affect your situation if the builder becomes insolvent or ceases operations. You’ll definitely want to seek the advice of a Realtor AND an attorney before signing a builder’s contract in the current market.”