Buyer's Real Estate Question - Please Help!?

Question

Placed a contract on condo with deposit of $5000 and purchased $6000 in upgrades in advance with no structural changes. Place is not even built yet - still framing the main floor and I live on the 7th. This is the first phase and they have 3 to build.

Now we have buyers remorse. Informed seller who wants us to let them know immediately because they have large waiting list and can re-sell in less than a week. Seller wants 100% of the $11k down and will not negotiate. Contract appears iron-clad, but this seems unethical - we offered to let them keep $5k deposit if they would refund us the upgrades, which is mostly labor (plaster treatments) that they have no investment in at this time.

Today, buyers at this place are paying 20k more for the same floorplan. I would understand if I was causing some damage to the seller, and the $5k seems more than fair for their admin fees of a $260k property... Should I hire a lawyer? My credit is too good for financing contingency clause

Answer 1

I'd recommend you read the contract very carefully. If you signed it, you agreed to whatever terms are listed and if it says you don't get the upgrade money back, that's exactly how a judge will rule (and what a lawyer will tell you).

I hate to sound so cruel, but this is exactly why you need a buyer's agent when purchasing ANY real estate. The buyer's agent works on YOUR behalf to get you the right deal. When you go with the developer, they're going to look out for their best interests. This may be an expensive lesson for you.

Answer 2

I would think if it were true that the seller could find another buyer they would not hold you to the contract - especially if they could get 20K more now. But if the contract says you will lose the "good faith" money and/ or the upgrade money if you back out then they have every right to keep the money. That is the whole point of such contracts. It protects the seller from financial loss due to buyer backing out for no good reason. You must decide to stick it out and sell later or lose the 11k. Your call.

Answer 3

If I understand correctly, you want out of the deal and the seller wants to keep your 11k. As I see it, you have two options. First, definitely consult a real estate attorney. The $100 consultation fee or whatever they charge is small price to pay to be informed of your legal options and perhaps salvaging some of your down payment. Second, if unit prices are appreciating as much as you say, you might consider going through with the sale and reselling as soon prices reach something profitable for you.

Answer 4

Do you know for a fact buyers are lined up offering $20,000 more for the same thing? If so, flip the property yourself. I doubt it, though-- situations like yours are happening all over because the condo market is tanking along with everything else. In Florida buyers are walking away from projects, some of them have tens of thousands sunk in their deposits and they are still walking, that's how bad the market is right now.

Answer 5

Absolutely you should hire a lawyer. They are trying to get to you big time. I don't know what state your from and each are different. Some have major restrictions against what the seller can require before doing anything in the way of construction cost to you. I would sure at least talk to a lawyer and see what they say. In our part of the woods it would cost nothing to see if we have a case or not.

Answer 6

The real estate agent ALWAYS represents the seller, the person with the house/land. NO way will they look after your ( the buyer ) interests.

You may not need to hire a lawyer but you certainly should get some legal help, perhaps only one visit to a lawyer would be sufficient for you to deal with the agent.

Answer 7

If buyers really are paying that much more, then don't cancel your contract. Assign it to a new buyer for the $20k.