HELP!!!New House Under Contract (sales, how much, buyers)

[kedus]

Hello all,

I need some advice...I am under contract for my new house being built and due by end of april. I have put down 5% as good faith and currently in process of locking rates.

So, my question is...I just found out that the builder had lowered the starting price for my type of house lower than what I was offered. Can I force them to renegotiate or am I stuck with them. It is good amount of change ~ 25k.

Thanks in advance.

[Dire Wolf]

You do have a Realtor, right? They should be able to help with this.

[Mikeheel]

You can always try to negotiate, but your contract is what it is. In this market, though, most builders will reduce your price rather than have you walk away and fight them over the deposit; but I wouldn't expect them to necessarily reduce the price by 25k.

Good luck,
Mike

[sneezecake]

Large national builder or local builder?

[mkal]

When i was planning to put in an offer for a house to be built last month, the sales rep made it clear that in the event, the base price of my house was lower in the future, we could at no point, negotiate. Once the contract was signed, there was no going back. I opted out. Hope this helps.

[Dire Wolf]

IMO in this market, the developer is a fool to let you just walk away (even if they keep the 5%). No telling how long that house is going to sit on the market and how much they'll ultimately be able to sell it for.

[stephz1008]

Yes, curiousity as to the builder. If it is a large builder due to volume in number of homes built, they may be willing to cut it somewhat. Local builder, due to a limited volume might not be so willing. On the other hand, a large scale builder like Hovnanian who isn't doing so well might not cut the difference, whereas a local builder may to save face with local reputation. It is all going to depend on the builder.

[Dire Wolf]

Also, you may have appraisal issues at the old price, which should give you a way out.

[kedus]

it is a semi local "Orleans Homes"

[JJingle]

Many people are walking out of the exact situation. I know of at least two situations. One on a beach house, the buyers walked away from a $60K deposit because the same house was reduced $150K by the builder.