We are under contract for a new townhome. We signed the contract back in February and are expected to close sometime in August. We just checked the builder's website and the base price of the model that we are buying has dropped by $20,000. Is there any way to renegotiate the contract with the builder so that we could get the new and much better price? If not, is it possible to back out of the deal, lose our earnest money deposit but then come back in and buy the same property for the lower price? Would we then be considered a risk? Also, would our lender even want to lend us the amount of money on the original contract now that the price has gone down so much?
Thanks
2007-05-05 13:53:49 · 2 answers · asked by buddmr_99 1 in Business & Finance ➔ Renting & Real Estate
You should first look at your contract. You should have a clause saying that the deal is contingent on you getting a loan for $X amount at some given rate. If the property will no longer appraise for the old value the lender won't give you the financing and you are off the hook. It would be to the best interest of the builder to renegotiate your contract with you for the new price. That way he won't be losing a sale.
2007-05-05 14:03:53 · answer #1 · answered by ttpawpaw 7 · 0⤊ 0⤋
You can get out w/o loosing your earnest money, as your bank is not going to loan you more then teh value of the property at closing.
I don't ever pay full asking price on new homes, but it sounds like you did. They will happily sell to you at the reduced price. There is a reason the price is dropping.
2007-05-05 21:06:36 · answer #2 · answered by Anonymous · 1⤊ 0⤋