Insight Homes

Review: When Insight Homes built our house in 2008/2009, they improperly installed a (temporary-type) plastic sump pump without digging deep enough or installing a drain field around the pump housing (in this case, a bucket). The conditioned crawl space kept getting puddles, we kept calling Insight. They, including owner Rob Lisle, admitted the water was not getting to the pump and they would have to figure something out. We stopped haranguing them to complete our punch list and fix the crawl space problem for good in 2010 (we had three deaths in the immediate family beginning the summer of that year). Meanwhile, the sump pump casing clogged with clay (unbeknownst to us), and last winter the pump died. The conditioned crawl space, which had puddles off and on before, now flooded completely. We discovered it when our Goodman furnace, supposedly guaranteed for ten years, began malfunctioning. We had to crawl through freezing water up over our knees to get to the furnace. A licensed plumber installed a new sump-pump, but informed us the pit was not deep enough and there was no drainage field around the bucket, and his company could not address the problem until the crawl space dried out. I E-mailed Insight in February of 2014, explaining the critical situation and asking for help, the warranty info for our furnace, and the new whole house vacuum attachment brush they had said was on order in June of 2010; I received no reply. Meanwhile, HVAC laborers had to crawl through water on numerous occasions to reset our furnace and make sure we were safe. I finally established contact with Insight in April, but have not heard from them since they requested more information and I sent it.

We have supporting documentation that our crawl space was at the top of our incomplete punch list, and all three of the professionals we've consulted have said the installation of the sump pump was done improperly.Desired Settlement: We performed our due diligence and brought companies in to evaluate the crawlspace and give us estimates to correct the conditions of our ruined crawl-space. We selected the most reasonable estimate, and work will begin soon. We ask that Insight reimburse our cost of approximately $9,000 for having the job done properly. We also request the new whole-house vacuum brush promised to us in June of 2010.

Business

Response:

As the customer stated, this house was built over 5 years ago. It take a few days before the information regarding this home can be gathered.

Business

Response:

This home was completed in 2009. Insight Homes built a home on the customer's lot that met or exceeded all codes. The customer notes a plastic sump pump that it appears the customer believes was installed for the purpose of ejecting ground water. This is not correct. During the construction of the crawl space, a pump was designed to be in place to redirect water that drains from the HVAC mechanicals, such as condensation from the air conditioning/dehumidification system. In other words, the pump that is in place was not designed to be used for "sump puming" below the polyethylene membrane. If the pump failed or has become clogged, this would be considered a home owner repair.

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.

The pump was improperly installed, regardless of what water it was "designed" to "redirect." Experts have informed us that the pump failed as a direct result of having been improperly installed (with no gravel in the pit). Oh, and we are still waiting for our vacuum brush, which he does not mention.

Business

Response:

Insight Homes is willing to have our building scientist meet with the customer's experts to discuss. If the customer did not receive the stated vacuum brush, Insight Homes will contact our supplier to retrieve. Please have the customer provide documentation showing the initial request for the vacuum brush.

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted]. I will contact our expert about meeting with Insight's "building scientist." I require clarification as to the purpose of the meeting, however. Will it be to confirm that the sump pump installation was done incorrectly, and if so to reimburse us for the cost of having it done right? Also, the meeting must take place soon, as we are running out of time to take legal action if Insight refuses our request for reimbursement.

As for the vacuum brush, I forwarded an email regarding our incomplete punch list including the whole-house vacuum brush problem to Sunni in the Insight office during the summer. I explained to her that Joe, production manager in 2010, said he had ordered it. We haven't heard anything since. Please ask them to send us a replacement brush.

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.

Review: We entered in to a sales agreement to purchase a home with Insight Homes in August 2013 and placed a $5000 deposit. We were told that a new road was being put in and would be completed by September 2013. We were on contigency until we sold 2 properties in the beginning of November 2013. We were told the road would be completed by December 2013. We made the selections for our home on 11/27/2013 and gave an additional deposit of $33,568, We were told that the construction of our home would begin the first week of January 2014. Our Realtor kept asking about a start date because we are in a rental townhome until May 2014 and would need to vacate. Insight was informed of all of these details. We were then told construction would start on February 1, 2014. We went to the sales office on 2/1/14 because the road was still not completed and there was no sign of construction. At that time we were told by the sales agent Leah Chernock that constuction was scheduled to begin on 2/18/14. We were also informed that they would be building in lots of 3 and that we were in the 3rd group at # 8. This was extremely upsetting because of our housing situation and the unkept promises. We then did some research and discovered that the builder is not bonded and no building permits had been pulled for any homes. We also were told that the company is in financial trouble, slow to pay subcontractors and having difficulty meeting payroll. All of these factors prompted us to send a cease & desist email to [redacted] on 2/4/2014. We have had no response from any one above the sales agent since our contract signing in August. We are now told through the sales agent that they will not refund our money because they purchased supplies. We don't understand how this could be done without a permit. If this were true these supplies could be used on any of the homes that are also waiting to be built. As of 2/19/14 the road is not completed and construction has not commenced.Desired Settlement: All we want is our deposit returned($38,568) because we don't want to be involved with a unstable builder in a community that will most likely not be finished!

Business

Response:

This is in response to the letter we received from your office concerning a complaint filed by [redacted]. In her letter [redacted] makes a number of statements and I will endeavor to answer as best I can based upon the factual information that we have on file. (copy of the letter attached).

I would like to start with the time line.

8-7-13- An agreement for sale for a property and home to be built known as a Whatley model on [redacted] in the community of Stonewater Creek, Millsboro, Delaware was written and later ratified by Insight Homes on August 13th, 2013. This was an agreement contingent upon the sale of an existing home by the Will [redacted]. The original contingency was for 60 days and was verbally extended until they released their contingency on November 15th, 2013. This contingency guaranteed the reservation of the lot, lot pricing, home pricing and option pricing. A deposit in the amount of$5,000.00 was paid to Insight at this time. (Copy of contract attached).

11-16-13- [redacted] changed home type to an Elaine model.

12-1-14- [redacted] visited the Insight Selection Center and met with our Selections Coordinator and finalized their structural and designer selections for the home and paid the additional $33,568.00 deposit due.

2-4-14- Our Sales Manager [redacted] received a note from our Community Sales Manager [redacted] stating that the [redacted]s stopped by the model at Stonewater Creek and that they were upset because the home had not yet started. They complained that they were due to move from their rental home in May. [redacted] the CEO of Insight, had a discussion regarding their concerns and agreed to move [redacted] forward in the construction process and start the home earlier. (Copy of e-mail attached)

2-5-14- [redacted] sent an e-mail stating that they wanted Insight to "cease & desist any further construction on the site." They requested a full refund and stated that they had contacted an attorney, and were fully prepared to move forward with litigation. They also stated further that they would involve the Attorney General's office and that others wou ld join them in litigation . No actual reason for this action was given. (Copy of E-mail attached)

2-10-14- [redacted] sent [redacted] an e-mail stating that she had tried to contact the Real Estate agent ([redacted] Bay Coast Realty) and [redacted] multiple times to let them know that we would be willing to move them up in the construction schedule and also pay any additional rent and storage fees if they were not in their new home by the time the lease expired on their rental property. Leah did not receive a response from either party .(Copy of e-mail attached)

2-12-14- Insight was informed th at [redacted] had purchased a home from another builder .

2-18-14- Insight received a "Release From Agreement of Sale" form from their Realtor's office (Bay Coast Realty) . This included a paragraph that stated all deposit moneys held wou ld be returned to the [redacted] . (Copy attached)

2-18-14- [redacted] called [redacted] the Broker at Bay Coast Realty and explained that contractually Insight was not obligated to return the deposit and that we were prepared to start the home and deliver the home as contracted. [redacted] also questioned [redacted] regarding the fact that [redacted] had purchased a home elsewhere. Bill replied to Don that he would have to check on it and would get back to him. [redacted] never received a response.

2-21-13- [redacted] spoke with an attorney representing [redacted] of Tunnel & Raysor . [redacted] requested the return of the deposits. He was not aware that the [redacted] purchased another home. He wanted Insight to send him a statement of costs associated with the purchase of the home. Don explained to John that Insight was not interested in returning the deposits and that we were prepared to proceed with the construction of their home and have it complete within the 150 days allowed by the contract.

Concerning the delays in the construction start:

The community ofStonewater Creek is owned by a development company . Insight Homes purchases lots from this development company for resale to home purchasers. Over the winter there were several"start" dates mentioned by the developer. These in turn were

passed on to Insight's customers in good faith. The start dates were delayed for a number of reasons; mostly due to the develop er waiting for a bond issue to be resolved. As soon as these issues were resolved February 18th, 2014- we started the actual construction process for the homes in this section. Insight currently has ten homes in the building process in

this particular section of Stonewater Creek. These range from the initial "foundation stage" to what is referred to as the "mechanicals stage." All of these homes will be finished well before the promised contractual date of 150 days from permit. [redacted] could have been part of the initial group of starts a nd completion would have been sometime in late April to early May. Insight is extremely interested in starting and closing on hom es in a timely fashion to satisfy all of our customers.

Concerning the accusations:

[redacted] make several accusations:

Accusation #1

Business associates of Insight told them th at th e "The company is in financial trouble, slow

to pay contractors and having difficulty meeting payroll".

Insight Respons e:

Insight has shown a profit from the building of new hom es for five straigh t years. We have ongoing contractual relationships with dozens of different vendors a nd we pay according to those obligations. Insight Homes does not have difficulty meeting pay roll.

Accu sation #2:

They stated that they have had "No response from anyone above the sales agent in the business office since our contract signing in August."

Insight Response:

Insight's Community Sales Managers are committed to servicing their customers and any communication would start from that source. This is a complete contradiction to their statement made earlier in the same document, where they admit that they met with the Selections Coordinator and had spoken directly to the Sales Manager.

Accusation #3

[redacted] were told through the Community Sales Manager that In sight could not return deposits because supplies were purchased . [redacted] states "We don't

under stand how thi s could be done without a permit. If this was true these supplies could be used on any of the homes that are waiting to be built."

Insights Response:

Once a home is released in Insight's purchasing system, hundreds of purchase orders are

issued to various vendors. Most of these purchase orders were issued I n [redacted] case, not only is this a huge undertaking for Insight's staff, but m any of the items ordered have to be either cancelled (a n other huge undertaking) or warehoused. We can't arbitrarily use parts intend ed for on e house in the construction of another. There are hundreds of different colors, types, makes and finishes involved in each and every home. In addition to this we have the expense of our time for writing and processing and servicing the contract, for managing the selections process, issuing the necessary purchase orders and for paying commission s to sales staff an d agents. Also, the loss of the profit from the sale of the home.

To conclude; Insight is an award winning build er having garnered top design and construction award s from the state of Delaware. We built more than 150 homes in 2013 and have close to 500 people in our custom er family. We str I ve to provide premier

customer service and to stay in communication with our customers throughout the en tire

process from first contact to well after the home is completed.

The delays in development construction were not a deliberate act by Insight Homes. We were held to information provided to us by the developer and this information was passed to our customers in good faith. Likewise the developer was acting in the best faith with Insight and circumstances changed over the course of the winter. Some of this was caused by Sussex County requirements and other by developer financing requirements. All of which were out of Insight's control.

Insight is still willing to abide by the legal contract agreement that we entered into with [redacted] and build the home a s purchased.

Review: mold mildew in crawl spaceDesired Settlement: fix it

Business

Response:

could you let insight know problem resolved two emails its is under [redacted] tell them its ok they are getting nervous about mildew and porch 9[redacted] ID [redacted] hi they said they will resolve 2 issues on this Tuesday could you let them know so they come to my house

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.

An outstanding orginization. From beginning to end. No surprises. Excellent communications, services, and product.