‘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

“Very unexpected,” Alex Oleksy told WCNC. "You see rods sticking out. You see tall grass. There's a roof being held by a 2x4. Looks unstable.”

It’s the same for other homebuyers who purchased new-build homes from Helmsman Homes and Nest Homes in Mooresville and nearby Statesville. These builders, both connected, ran into financial difficulties.

That led to work stoppages as subcontractors demanded payment for their work. As work stalled on the subdivisions, unfinished homes were left vacant, and deteriorating, for a year.

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.

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.