ComplaintsforKarem Built Homes, Inc.

• Initial Complaint

  02/21/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  We reached out to Karem Built Homes in October 2021, as we were interested in building a custom built home with them. We were contacted by **** *. to setup a meeting to view the model home. We viewed a few available lots & also viewed a home that was almost complete. ** ******* & I were very impressed with Karem's homes. We looked at lots in 2 different neighborhoods & discussed the type of home we were interested in building. We were advised the estimated cost that it would be to build the house we were interested in. We originally wanted a 1 1/2 story with finished basement that included 2 bedrooms and a full bath in the 1/2 story but was advised that it cost less to finish in the basement. With that information, we decided against the 1/2 story and moved the 2 bedrooms to the basement. The floorplan that we decided on was almost identical to the one we viewed that was near completion with the exception of the basement having another bedroom and powder room. Also, we extended the garage and master bedroom. We were advised prior to signing the lot reservation that the house we were interested in would be in the $600Ks; that was the house with 1 1/2 story with finished basement. After looking at the house that was near completion, we discussed the price of that house & was advised the cost was approximately $580K. We were excited and ready to move forward, as we were going to change a few things and still be within our budget. We decided to move forward with the lot reservation based on the information that was provided to us. After months of planning & when the bid came back at $703K, Mr. Karem advised that the pricing on the near completion house was priced 2 years prior so it was not accurate. He also advised that **** should not have been giving numbers out. If we knew the facts back in October 2021, we would not have put down a $5K lot reservation. We would have had accurate info to make our decision. They did not provide accurate info nor the facts up front.

  Business response

  02/28/2022

  My response to complaint #******** on the website form was over 2,000 characters, so I am emailing it instead below:

   The ****** did not honor a commitment they made to me, in a non-refundable agreement we signed on October 23, 2021, to build a home (See ***LC ***** lot contract ******.pdf-also provided by the ******). The reason it is a non-refundable agreement is because as a builder, I have to do a lot of work up front, and incur costs, without compensation, in the hopes of building a home.  In other words, if they had offered me $5,000 to spend all the time and money I spent developing the plan and pricing the project and paying carrying costs on the lot, but not build the house, I would have told them to keep the money, it is too much of my time and money to spend and not build a house.  In addition to paying for the cost of the plans, I have to pay interest, taxes, and to maintain the lot with mowing and erosion control before we build the house.

  I also lost a customer who wanted the lot when the ****** did, who were devastated that they did not get the lot and ended up building with another builder in another subdivision.  Since then, I took the lot off the market and could not sell it to 3 other people who inquired about building on the lot.

  In addition, comparing the house the ****** looked at with the one they ended up wanting to build are not even close to the same. I even took the time to do a detailed analysis of the pricing differences of the 2 houses (See ***** ** ***** ******* ******** ******.pdf-also provided by the ******), just to show them the differences, so they could figure out what could be cut from the budget, like all of the other customers do. The fact is, comparing the house they wanted with the house they looked at was comparing apples to oranges.

  In reality, what they are requesting is for me to build them a larger house with a much larger finished basement, with approximately  $63,000 in extra allowances and costs related to the increased size, for the same money as the house next door that was priced 2 years ago.  They can’t do anything about the $42,000 in increased costs from 2 years ago, but they can cut the budget like everyone else, and build this house, they are simply choosing not to. I will not be refunding the deposit, the Lot Reservation Agreement is clear.

   

  *** ****** **** **** ******

  --------------------------------------

  Karem Built Homes, Inc.

  
  

  Customer response

  02/28/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
  
  [*** ***** & his company provided false advertisement, as the home that *** ***** compared the proposed home to was not apples to oranges. The differences in the 2 houses were expanded garage, expanded master bedroom, and a powder room & bedroom in the basement; it was the exact same floor plan. (I will look for additional attachments) The issue occurred when *** ***** neglected to provide us with the facts about the true pricing on the compared house was from 2 years prior until 2/4/2022. The pricing information should have been disclosed to us in October 2021 when we originally inquired. This has been a very misleading business transaction and experience. *** ***** is not acknowledging the error that took place on his business side whether unintended or not. This is not fair to us as consumers, as we were presented something based off 2 years ago in October 2021 but not advised until February 2022 after we were tricked into signing the non-refundable contract. Yes, we signed it based off false representations of the business. At this point, I have to wonder if this information was purposely withheld in order to take our $5K deposit and keep it. If that was the intent, we are entitled to the full $5K deposit back. *** ***** couldn’t ethically think it is fair and/or correct to treat potential customers that plans to spend $550K+ to build with this business & possibly refer others. Please see emails.]
  
  Regards,
  
  ******** **********

  Customer response

  03/03/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
  
  [*** ***** states that he had to pay taxes, interest and to maintain the lot prior to building; he is required to do that on all of his unsold lots. Speaking of Lot ***, *** ***** & his representative (**** *.) originally advised us that the lot was unavailable & promised to someone else. When we were not making any commitments, **** texted me to advise that Lot *** was available since those people had not put money down on that lot. Please see the screenshots. *** ***** also advised that the couple could choose another lot since we were securing the lot with a check & the other people had been dragging their feet for so long. *** ***** later told us that those people chose a lot in the other neighborhood so I'm not sure why he is advising that they decided to build in another subdivision.

   

  *** ***** is stating that the house that we were wanting to build did not come close to the house at Lot *** & that is just not true. At our meeting, we based everything on the house on Lot ***. We moved the garage entry to the right side, as the Lot *** had a left side entry. The house that we wanted to build would be exactly the same but everything would be on the opposite side. We don't have the meeting notes but I am sure *** ***** has the notes that specify comparison to Lot ***. The changes that would be made to the house that we wanted to build were: extended master bedroom, extended garage, a powder room in the basement & an additional bedroom in the basement; that's it. So it was the same house concept. *** ***** is not acknowledging the email that came from **** *. with the quotes for a larger house (1 1/2 story with a finished basement that would be in the $600Ks). When we asked how much it would cost to build the exact same house at Lot ***, we were then advised by *** ***** that the house was priced 2 years prior. We had no reason to think that the numbers that **** *. gave us were incorrect, as the house at Lot *** was about to close within days of us viewing it. In addition, *** ***** states that we are simply choosing not to build a house with him & that's not true. *** ***** advised that he can build a completely different house than what we discussed and priced. He and his team failed to advise that the house that they were marketing to us was priced 2 years prior; they did not provide all the facts about the pricing of the house they were marketing to us. That is false advertising! 

  I can't find the floorplan for Lot *** to compare to the proposed Lot *** but it is identical with the exception of the powder room and extra bedroom in the basement. *** ***** should be able to provide a copy of that floor plan. Also, if you can take another look at the email from **** *. as he provided the quote after ** ******* viewed the house at Lot ***. He also advised that the house at Lot *** was $571K. 

  ]
  
  Regards,
  
  ******** **********

  Business response

  03/15/2022

  My previous response was all that needs to be said.  I lost at least one customer because of them, who built in another development because they could not get the lot they wanted in this subdivision.  The bottom line is the ****** did not honor a commitment they made to me, in a non-refundable, written agreement we signed on October 23, 2021, to build a home (See ***LC ***** lot contract ******.pdf-also provided by the ******.
  
  As Mrs. ***** states, the house they wanted was based on another house we did.  99 percent of my other customers also want to build a house based on another house we did.  Again, what they are requesting is for me to build them a larger house with a much larger finished basement, approximately $63,000 in extra allowances and costs related to the increased size, not included in the other house they are comparing it to, for the same money as the house next door that was priced 2 years ago.  They can’t do anything about the $42,000 in increased costs from 2 years ago, but they could have cut the budget like everyone else, and build this house, they simply choose not to.  It doesn’t matter how much they complain, I will not be refunding the deposit, the Lot Reservation Agreement is clear.

  Customer response

  03/15/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
  
  [This is considered Bait and Switch by not providing facts to the consumer in order to get a sale and/or non- refundable deposit based on false advertising of a home built 2 years ago. *** ***** needs to take ownership for the mistake that was made by himself and marketing representative (**** *.) and at this point issue our full refund of $5K at this point. In addition, provide the floor plan for lot *** to compare to lot ***; they are almost identical. We were tricked and Karem Built Homes provided false advertising. It’s not a matter of complaining, it’s about what is morally right. As a business, this is unprofessional to withhold important information that will cost consumers unnecessary money. I previously recommended Karem to a realtor that was bringing their clients to build a home but I had to share this information to warn them. It is up to that realtor if they move forward. We have provided a lot of information that supports that *** ***** and his business failed to disclose important & relevant details about building the proposed home and we are entitled to our full $5K deposit back. When we signed the lot agreement & put the deposit down, it was based off false information provided by Karem Built Homes so the agreement should be null and voided with our funds fully refunded.  ]
  
  Regards,
  
  ******** **********

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