Adair Homes Inc

We received the complaint filed by Mr ***.The customer signed a Design Service Letter of Understanding for Adair Homes (attached), where Adair Homes agrees to provide design and estimating services for a non-refundable deposit of $3,Per our agreement, we designed a custom home for the
customer and produced pricingThe reason the Design Services Deposit is non-refundable is because Adair Homes spends significant resources meeting with a customer during the initial design meeting, designing and drafting the custom home with revisions, determining the retail price through our estimating process, among other costs & resources.As the Mr *** details in his complaint, during the process of pricing the customer's home, we had a price increase across the board, on all floor plans including mileage This impacted all customers not currently in Ratified contracts, including Mr ***, who had not signed a home order with Adair homes.The housing industry has seen significant increases in costs this fiscal year, both in labor and materials Unfortunately, these costs increases impact consumers through retail price increases.Prior to receiving the Revdex.com complaint, and subsequent to the complaint, we made attempts to move the project forward although unfortunately,, Mr *** made the decision to not move forward with Adair Homes.Per the Letter Of Understanding signed by Mr ***, the deposit is non-refundable However, if the customer decides to move forward with Adair Homes in the future we will apply the deposit to the contract

Complaint: ***I am rejecting this response because:ADair homes falsely led us to believe we would have zero down and payments in the1700-range by emailing documents from lenders with scenarios such as ours When we discovered this was not true we had to walk away so that we would not be put in a situation of having zero savings and living house poor to afford the mortgage causing us to lose 700$ in appraisal fee and 1000$ in earnest money Then Adair continued to say we would not receive our deposit of 1700$ until we retracted our online reviews of our experience including Google & Facebook and included resolving our Revdex.com complaint as a stipulation to get our refund
Sincerely,*** ***

Complaint: ***
I am rejecting this response because: One of Six
items in our request has been addressedOur construction contact is blaming the Adair Head Office for a delay on our reimbursement check and the subcontractors' schedules for the delays in workNo one has addressed anything pertaining to the postsThe carpet people did come a few days ago to address that issue but we have not heard anything on any of the other itemsWe'd like a response from Adair's Head office for each of the remaining items still uncorrected.We moved into our new home on September 30, with a few items pending completionThe water leak happened the second week of OctoberHere we are, at January 30, 2018, STILL waiting on the promises to finish and/or correct with little to no actionFOUR Months from the day we moved inUnacceptable.
Sincerely,
*** ***

Revdex.com:
As I stated previously in an email a satisfactory resolution was reachedI have reviewed the response made by the business in reference to complaint ID ***, and find that this resolution is satisfactory to me
Sincerely,
*** ***-***

I am following up to the complaint filed by *** *** *** in regards to a realtor referral fee Prior to this complaint being filed, the referral payment had already been processed and mailed to the realtors office (confirmation attached) We value our relationships with our
Realtor Partnerships, and specifically with ***Please let us know if there is anything else we can do

Complaint: ***I am rejecting this response because:
No one from *** *** has ever been to our houseWe've certainly never turned anyone away and told them we did not want them to fix our floorsI spoke to a Beau from *** *** over the phone about our floor damageI emailed him the same pictures I sent to Adair back in JanuaryHe then called me back saying he sent his recommendation back to Adair that our entire floor needed replacedHe was told by Adair that our flooring was the peel and stick laminateOur flooring is the snap together kind and Beau said that changes things and that he can't just replace a random board in the middle of our flooringIf only replacing the short cut boards is all Adair is willing to do then there are a lot more than boards that were cut too shortThere are a least 6-boards that are coming apartWe have been put on the back burner and pawned off for too long.
Sincerely,*** ***

Adair Homes offers a day price protection, which is an industry leading timeframe Which means our customers home price is locked from the time of Order Ratification, and as long as the customers site is ready within days, their homes price stays locked all the way through
construction If a customer does not meet the period, and within that period of time Adair has increased prices on all of our homes, the customer is subject to the new pricing.In the current housing market, the cost to build homes is increasing at approximately 15% per yearThis includes the cost of materials to build homes (lumber..etc) and the labor costs to build homes (plumber..) As these industry costs increase Adair is forced to raise our prices accordingly. As the *** mentioned, there was a price increase on their home which was required to be capturedThe customers home order was Accepted (ratified) on 5/5/and the customer submitting their documentation that their site was ready on 10/27/2017, which is days and days past the price protection date This is also days from when we gave the their construction drawings Adair Homes quotes days for construction drawings, which we exceeded in this instanceIf we added these additional days to the price protection period the customer still would have missed the price protection by days, which was part of our consideration.As a customer service gesture we discounted the price increase. We recognize that the customer is unhappy to have been required to pay the price increase, althoughultimately we are following our contractual obligations

The customer and Adair have come to verbal agreement to a resolution that is satisfactory to the CustomerAs part of this agreement, there are documents that adair is in the process of producing. The expectation is that the dispute will be resolved in the next days

Sometime in August of Adair Homes dispatched a Senior Level Superintendent, to inspect a warranty complaint filed by the customer who believed they were experiencing a manufacturer’s flooring defect or failure
Shortly after, sometime in September, the original installation contractor
visited the home to inspect the product for failure and/or installation related problems
In addition, the manufacturer of the laminate flooring, Shaw Floors, sent an independent 3rd party inspector to inspect the flooring for manufacturing defects and or deviations from manufacturer's installation recommendations(See attached Laminate Inspection Report - Shaw Claim #:***)
The flooring inspection revealed there to be several isolated boards that were peaking at side and butt jointsIn some areas, proud edges were observed at seam edge linesIn one specific area, a magnet test revealed there may be a foreign object under the floor’s surface which caused a crack in the face of the laminate flooringAll observations related to the customers concerns are attributed to deviations from recommended installation practicesNo Manufactures Defects were observed by the independent flooring inspectorIn full transparency, Adair has shared a copy of the independent's report with the customer
Currently, Adair is working with the original installer and the homeowner to replace and/or address the boards that were negatively affected or impacted by installation methods out of accordance with the manufacturer’s recommended installation practicesWe expect the newly ordered replacement parts and pieces to arrive in the next two weeks with intentions to perform the necessary flooring repairs the week followingAdair is making every attempt to work inside the provisions of the buyer’s schedule and to have all repairs complete by the of this month.Adair also has the full intention of repairing the remaining “punch list item” referenced in the origional complaint, (replacement of damaged center astrical on Den Option double swing doors) during the time the flooring repair is made

As promised, we refunded the customers processing fee as requested and am hopeful that this allows the situation to be resolved with the customer

Revdex.com:I have reviewed the response made by the business in reference to complaint ID ***, and find that this resolution is satisfactory to meSincerely, *** ***

I received a response asking for a clarification, although I cannot find what needs to be clarifiedI have included the communication from the Revdex.com below.As an update, our team is aware of the issues detailed in the customers complaint and are working towards resolving themWe have a detailed list of the items and our construction team is addressing. This message is in regards to complaint ID *** filed on1/3/2018.Below are some issues Revdex.com needs to receive clarification on before being able to move forward.Please provide a detailed response addressing the consumers concerns as requested in their complaint and follow up responses. Please provide written clarification within 5 calendar daysOnce your correspondence has been received, Revdex.com will continue the conciliation process.Failure to provide a response within the requested time frame will result in this matter being closed as unresolved, which may have a negative impact on your Revdex.com Business Review and rating.THE TEXT OF YOUR RESPONSE MAY BE PUBLICLY POSTED ON Revdex.com'S WEBSITE PLEASE DO NOT INCLUDE ANY PERSONALLY IDENTIFIABLE INFORMATION OR USE INAPPROPRIATE LANGUAGE IN YOUR RESPONSE Revdex.com MAY EDIT YOUR RESPONSE TO REMOVE PERSONALLY IDENTIFIABLE INFORMATION AND/OR INAPPROPRIATE LANGUAGE.Thank you for your prompt reply.Sincerely,Amanda KirkerLead Revdex.com Engagement Consultant

I am writing in response to the complaint filed by *** ***Our customers experience is extremely important to Adair Homes, and it is highly unfortunate the customers lenders terms we are not satisfactory. Adair Homes did not provide the financing to the customer, as we do not offer
financing. The customer utilized Alliance Financial, which is a sister company of Adair Homes, although is a separate entity. Adair does not have visibility into the customers construction financing terms or any other details related to their construction loan.
Our focus is on building homes for customers and providing a great customer experience, and when a customers project does not move forward, we both lose So, I reached out to the homeowner and during the conversation I offered to refund the processing fee and am currently waiting to hear back if it is agreeable before doing so

Complaint: [redacted]
I am rejecting this response because:
  As previously stated the agreement to move forward with a design concept with Adair was based off of an estimated quote provided to us by Adair homes prior to signing the concept home agreement. Adair changed the terms of the agreement after it had been signed by significantly increasing the mileage costs of the home project. It was not until 8/26/17 that I received an offer from Adair to give us a credit of $10,000 thereby offsetting the mileage increase. We had discussed and carefully considered the most recent proposal from Adair and while we appreciated Adair's effort to remediate the issues that had been experienced over the previous five months in our dealings, unfortunately it was too little too late to rectify the situation. As previously explained throughout this process, our intention was to start construction before the winter weather was upon us. Given the six week time table presented to us by Adair to complete plans and get all the necessary documentation together to submit a building permit and the approximate four week permit approval period anticipated, the earliest construction could begin in a best case scenario would have been mid-November to early December. This is traditionally the rainiest time of the year for us on the coast. I revisited the possibility of starting construction during this period with my local site work contractor (who is well respected and highly recommended in the area) and he reiterated what I had previously relayed to Adair that it was not recommended due to additional costs that would be experienced by me and potential issues with installing required drainage on my property during the wet season. As such, we had run out of time for Adair to build our home this year. And quite frankly, our confidence in Adair keeping any estimated timelines is very low based off of our experiences over the last five months.In addition, upon Adair relaying to us that there was nothing more they could do regarding lowering the mileage cost that was stated to us prior to the 8/26/17 reduction proposal received from Adair, we started to explore other options and had found another potential avenue that could get us into a new home by the end of the year or early into 2018. As such, this is now the preferred option we are pursuing.As stated in my claim with the Revdex.com, our desire is that Adair would recognize their negligence and responsibility for the conflict we find ourselves in and return our $3000 design deposit that was rendered under the presumption that timelines told to us by Adair would be met allowing us to start construction in a timely manner prior to the rainy season. Our hope is this disagreement can be remediated peacefully at the current level of escalation so that legal actions will not need to be pursued. Thank you for your immediate attention to this.

Adair Homes is a company that stands behind the homes we build and acts responsibly per the conditions of the warranty provided at the point of sale and has been doing so for the past 47 years.
Adair Homes made requested adjustments to the referenced door at the time of the home’s completion. The...

buyer accepted these adjustments at the time as a condition of accepting their home.  (See Attachment: Project Inspection Report- Dated: March,11th, 2011)  While the homebuyer claims to have had issues with the door since the house was built, we do not have record of any written warranty requests in our possession up until the present time.  The warranty provision related to the door is for one year from the time of completion of the home, and there are no records of written warranty request inside of the warranty period. Now - more than five years later - the customer is bringing the matter to our attention and including the Revdex.com.  
Due to the close proximity and unprotected positioning of the [redacted] family’s home relative to the Pacific Ocean Shoreline, Open Terrain, High Wind Exposures and known Substantial Rain Events for the area, Adair Homes presented the [redacted] family with a Severe Climate Agreement at the original time of contract. (See Attachment: Severe Climate Agreement dated June 10th, 2010 and Photograph #1).  The Agreement makes mention of both the risks of building a home in a location such as the [redacted] property, and also the special requirements the owner needs to accept in order for Adair to build in such a location.
During a recent inspection triggered by the [redacted] Revdex.com complaint, it was evident that the “storm door” required by the Severe Climate Agreement  had been added fairly recently, allowing the consistent abusive coastal weather patterns to pound on the unprotected Atrium Door for years. This can be seen by viewing the unfaded and blonde colored door jamb framing materials in relation to the significantly peeling and faded original Atrium Door frame. (See Attachments: Photographs #4, #5 and #6).  
Additionally, the Atrium door and surrounding exterior cementitious cladding and trim that were installed during the original construction of the home have not been routinely maintained by the [redacted] family. The Owner Responsibilities of perpetual protections as outlined in the Severe Climate Agreement were not adhered to or followed either, as you can see in the provided documents (See Attachments: Photographs #2,#3, #4 and #5) documenting cracked siding, missing or damaged caulking and peeling paint coatings.  Any one of these deferred maintenance items could be responsible for the admission of moisture into the structure.
This home has been under the sole possession, care and responsibility of the [redacted] family for the past five years.  The portion of the Adair warranty related to the identified item expired more than four years ago. The [redacted] family has only just recently filed a warranty claim relating to the Atrium Door. Many of the requirements noted on the Severe Weather Agreement were not followed or adhered to resulting in apparent visual evidence of deferred annual maintenance.  Taking all of these factors into consideration, Adair Homes does not find there to be warrantable items presented by the customer.  We also ask that the Revdex.com dismiss this claim as without sufficient merit.

We have contacted the [redacted]s and made an evaluation of each of their reported concerns. While we have some disagreement as to the specifics of some issues, we are working toward reasonable and fair resolution in each case.

Adair Homes offers a 120 day price lock guarantee, which is an industry leading time-frame as it relates to economic and commodity driven fluctuations in our industry. From the time of Order Ratification, the customer has 120 calendar days to get their site development completed. The homes base...

price then stays locked through completion. Should a customer not meet the 120 day given time frame, their home order is then analyzed within that period of time for a potential increase. In the current housing market, the cost to build homes is increasing annually at 15%. This includes the cost of labor and materials to build single family homes. As Adair receives these industry cost increases, we are forced pass along prices accordingly.As the [redacted]'s mentioned, there was a price increase recognized for their home which was required to be captured. The [redacted]'s home order was Accepted (ratified) on 4/21/2017 at 5:44 pm. The [redacted]'s submitted their documentation that their site was ready on 9/13/2017. This is 145 days in total cycle time since order ratification, and 25 days past the contracted price protection expiration date.  This is also 90 days from when we gave them their construction drawings.  Adair Homes quotes 60 days for construction drawings, which we did not exceed in this instance. We did however extend a 10% concession in lieu of the full price increase. This 10% was applied due to a vendor error and is a customer service gesture to recognize the vendors error.

We want every customer to have a great experience, so we take situations where customers are unhappy seriously.  Situations like this one,  where a customer is unable to move forward based on their lands site development costs is a loss for the customer and for Adair.  We are only...

successful when our customers are successful.
Adair offers a unique business model where our customers are contractually responsible for participating in the home build, which allows our homeowners to build equity in the project.  The average equity position for Adair customers this current year is 22%. The main area for our customers participation is determining and managing their lands site development costs.
Each one of our customers building sites are unique, with the costs ranging significantly based on permits, excavation, well/water, septic/sewer, power and many other characteristics.  The customer's responsibilities are detailed clearly in the Joint House Building Agreement, which was signed by this customer.  We do help each one of our customers through the process of determining these costs, however we are only able to provide price ranges up-front based on our previous customers experiences, with the actual costs not known until the customer receives hard bids from their contractors.
Our contract also states that the $1,700 processing fee is refundable up until the time that the contract is ratified by Adair Homes.  This is typically after a customer has determined that their project is viable.  This particular contract was not ratified by Adair Homes because the project was not viable, so the customers processing fee is refundable.
So, I have requested that a check is processed for the refund.  We would like to have had the opportunity to build a home for this customer and hope that there is an opportunity in the future to help them build their dream home.

Adair Homes is a company that stands behind the homes we build and acts responsibly per the conditions of the warranty provided at the point of sale and has been doing so for the past 47 years.Adair acknowledges there were several minor punch list items that carried over after the time of the walk...

through into the post close warranty support time period and we are actively working to resolve them. Our understanding is that most of the customer's concerns have been addressed and completed to the Robertson's satisfaction. All known HVAC and Electrical issues have been addressed and resolved. The patio door adjustment is being performed today and the flooring repair is scheduled for this coming Friday.

Complaint: [redacted]
I am rejecting this response because:I still not have received my check. 10/5/2017 1:39pm
Sincerely,
[redacted]