We signed a contract on a new home in March. New homes in our development have been selling slowly and last week were lowered in price by ~$25,000. My home is still being built and will be ready sometime in October. Do I have any legal way to get the builder to lower my price as well, or am I simply stuck?
2007-07-30 03:22:58 · 5 answers · asked by Todd K 1 in Business & Finance ➔ Renting & Real Estate
Hi.
You are not necessarily stuck. I hope you have a Realtor. Because if you were my client I would've made your contract contingent upon appraisal. Therefore, when the home is completed it will have to appriase for the the price you agreed upon. If it doesn't you can renegotiate with the builder. My best advice is to look over your contract and make sure that your contract is contingent upon appraisal. If it is, you're good. If not, you're stuck. You can also be asked to be let out of the contract and lose your earnest money.
Good Luck!
2007-07-30 06:33:27 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If you signed a purchase agreement with the builder, you are stuck. The price you negotiated for at the time of the signing is the price you are committed to UNLESS the home still has to be financed. Most states now give you (the Buyer) an out if the home does not appraise at minimum for the sales price.
If the other homes in the development are now $25,000 lower than they were in March and yours still needs to be appraised, you may have your out/ negotiating point. With the prices being lower, an appraisal on yours may come in lower than the price you agreed to at signing.
Talk to your finance people and then talk to the builders....
2007-07-30 10:43:33 · answer #2 · answered by CMR2006 3 · 0⤊ 0⤋
Unfortunately, you are most likely going to be stuck. You can contact the builder and express your concern with them, however they do not need to lower the price. It is definitely worth it to talk with th builder though because you never know. You can't get anywhere if you don't at least try. How much of a down payment have you given already? If your down payment/earnest money is considerably less than 25k, you may want to even consider backing out of the deal with the possibility that you will lose your earnest money and have another home built that is cheaper now that prices have gone down. Maybe even work this into your negotiations with the builder. Best of luck.
2007-07-30 10:42:57 · answer #3 · answered by dzwreck 4 · 0⤊ 0⤋
You are probably stuck with your purchase price. It's like paying full price for something at the store and then it goes on sale, but you've missed the 14 day grace period. My suggestion would be to talk to your builder and see if they can throw in some free upgrades or see if there is anything they can do to help off set the price difference. Good Luck!
2007-07-30 10:34:05 · answer #4 · answered by TellMe08 2 · 0⤊ 0⤋
You're simply stuck. You signed a contract with him to provide you a new house, and you are expected to honor the terms of what you signed.
2007-07-30 11:47:50 · answer #5 · answered by acermill 7 · 0⤊ 0⤋