My builder has reduced the home price 30 day after I signed the purchase contract?

Question

I have purchased the new construction in April and signed the purchased contract. I just recently found out the builder has reduced the price in May. The house is still in construction and it will not be closed until septmember. Is there any thing I can do to get a price adjustment from the builder?

Answer 1

Legally, you're stuck for it - you signed the contract at that price. If the price had gone UP in May, would you have considered it OK for him to tell you that you have to pay the higher price even though you have a signed contract?

That said, you could talk to him and see if he's willing to make some concessions. Even if he won't lower the price, he might make some of it up to you by throwing in some extras.

Answer 2

Charley to the t must be a big baby. Standing at the guys office, and yelling is only going to make him mad. Then he really wont work with you. You have to understand you singed a contract and its not his fault you were willing to pay more than others. I would kindly ask him to reduce your price to where the others are at. Also, if you have not had an appraisal yet, his may come in lower then your contracted price, which means the bank will not give you the loan for the higher amount, and he will have to sell for less.

Answer 3

Just read what Judy said. It's a good explanation.
A builder might do something for you for free (install better floors or better appliances, maybe landscaping, etc) but if they do not want to do it, you are stuck.
Judy's example with price increase is perfect. Would you even mention anything, if they increased the price and you got it for a lower price? Would you go to the builder and demand he takes more money from you?

Answer 4

I worked on homes in Vegas for years. They shut down the ones we were working on one Christmas. They reopened three weeks after Christmas and raised the prices of the "starter homes" a cute three bedroom home with a garage from $89,000.00 to $113,000.00 believe that or not, they started doing this all over Vegas during the building boom.
They also locked the people into a price fix, they couldn't resell their homes for more then they bought them for, for five years. Some people didn't understand this.
I know one guy that put in a hot tub with all the goodies and a in the ground swimming pool. His house went from $165,000 to $250,00.00 but, he couldn't get it, he was locked in, they were divorcing.

This is the way it is, be careful when buying.

Answer 5

What you are talking about is that they are selling OTHER homes that is the same model as yours for a lower price.

Yes, they can do this. Yes, it's 100% legal. No, there is nothing you can do about it, unless you want to walk away from your earnest money and risk the builder suing you for non-performance.

Each piece of real-estate is unique. What one landlord sells a home for has no legal weight on what he or she sells another property for.

Answer 6

Demand it on the phone. Say you saw it and you were expecting to hear how much of that reduction was recoverable to you. If he hems and haws, press the issue. Don't let him get away. I'm assuming it's a male here, of course.

If he gets you bull-stuff or suddenly needs to leave, then identify a time when he is in his office and storm in furious about being screwed, start yelling outside his door and don't stop until he's shouting his concession. If he doesnt' react quickly, begin dashing things off tables, pick up papers and throw them at his chest and face, or begin overturning furniture.

There's no one to whom he can complain with any significance. You're just doing what's reasonable considering the dirty trick he's apparently trying to pull on you. Well, not anymore.

;)