Home Buying in San Ramon>Question Details

Gixxersixxer, Other/Just Looking in 94582

Can I delay the close date by a month ?

Asked by Gixxersixxer, 94582 Thu Mar 19, 2009

I signed a contract for a new home with a builder & close date is around 1-st week of July '09. If I need to avail the $8000 first time home buyer tax credit, I need to close on or after 11-Aug-2009 (as I sold my earlier home on 10-Aug-2006). Since I gave a 3% deposit last month before this law was passed, can I request the builder to push the close date ?
Thanks for your advice.

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Answers

17
We all seem to be in agreement on this one: YES, ask. Your builder will have carrying costs and might ask you to increase the price of the home by that amount or somehow make that adjustment. It never hurts to ask. Most people in the industry these days are aware of each others circumstances and are willing to adjust to close the sale. It will also depend also on how many of the units this builder is selling; does he have a large inventory to clear or a waiting list of potential buyers? How motivated is he? Best of luck to you in this purchase. And congratulations on being smart enough to take advantage of the $8,000 tax credit. Let us know how he responds.

Karin Jessen
Prudential Utah Real Estate
1 vote Thank Flag Link Thu Mar 26, 2009
It never hurts to ask. Contracts are a 2 way street, and as long as the request is legal, and both parties agree, you can change just about anything. Your request seems very reasonable especially since there is nobody living in the house who would be effected. I would be very surprised if the answer was no. A happy buyer attracts more buyers! Good luck
1 vote Thank Flag Link Thu Mar 19, 2009
Thanks Sam , Doug & Carl
Yes I signed the contract on 6-th Feb when this law wasn't enforced & as many know there was a lot of confusion, to begin with it was $15K then $7.5K with repayment & I think much later in the month it was resolved to be $8k for buyers in 2009.
But the tiny clause of "who is deemed as a first-time home buyer" was overlooked.
Again, I have the proof of the settlement papers of my earlier home.
BTW, the penalty is $130 per day for delaying the close date, as per my contract.
I wish the builder understands my concern.
1 vote Thank Flag Link Thu Mar 19, 2009
You can always request an extension of close of escrow. It is up to the builder as to whether or not they are willing to grant it. If the builder wants to play hard ball, they can force you to close as stipulated in your contract, or you run the risk of losing your deposit. You can not force the builder to extend the contract. Try being honest with them and explain the circumstances.
Web Reference: http://680homes.com
1 vote Thank Flag Link Thu Mar 19, 2009
Yes, you can always request it. They don't have to agree, but most builders are happy to close a sale right now, and will ok it.
Web Reference: http://SeattleHome.com
1 vote Thank Flag Link Thu Mar 19, 2009
I was able to reduce the home price by 4% instead, which was atleast thrice more than $8K.
0 votes Thank Flag Link Mon Oct 12, 2009
OK finally I was successful in working out a deal with the seller.
Thanks for all your responses.
0 votes Thank Flag Link Mon May 11, 2009
Gixxer,

I can understand. currently they are too manu buyers and builders are not budging.
0 votes Thank Flag Link Sun May 3, 2009
Seller is not willing to pay but mentioned that as long as I can pay the penalty on daily basis until the close date, they are ok. (which is absurd).
Since they had sold all the homes (except 2 model homes), they are trying to act smart.
0 votes Thank Flag Link Sun May 3, 2009
ask the seller to pay what you missed
0 votes Thank Flag Link Fri May 1, 2009
My close on first week of June & I think I missed the opportunity of getting the fed credit , but atleast I'm hoping to get the state credit for buying a new home.
Thanks for all your valuable answers.
0 votes Thank Flag Link Fri May 1, 2009
Thanks to all for taking time to respond.
As of today, the builder is still unsure about the exact close date(but should be around 1-st week of July), as they are waiting for the contractors to provide a timeline (which would be 6-th of April). At that time, the builder can provide me the walk-thru / completion date and better assess the financial aspect (i.e. the cost per day etc.)

To answer some of the queries ...

1. this is not a foreclosure/short sale
2. My rate is not locked yet.
3. The builder has about 20 homes in his inventory (sold 120 homes since 3 years). They want wrap up before end of this summer (atleast sign the contracts). I cannot comment of the # of buyers.
4. I'd like to close on or after 12-Aug-2009
0 votes Thank Flag Link Thu Mar 26, 2009
Yes ask the builder for a delay and offer to maybe pay his carrying costs if he will not do it as long as the lender does not have a problem with it. It is a tax credit now which is worth $8,000 so figure out how to save all or some of this money.

Tom Inglesby, Broker
RE/MAX equity group
Portland, Or 97239
503-319-9035
0 votes Thank Flag Link Thu Mar 26, 2009
In two words, HELL YES. The incentives have changed and for good reason. My suggestion is to work something out with your developer but you do have to understand, that they may have carrying costs. Options... Options, Options it is time to think out of the box my friend. Consider a short term lease where by you rent the home. Ensure you have a firm binding commitment letter from your lender, rent for the time you need to wait to qualify, and then close. But the best advice is to contact your attorney to negotiate a deal that will be attractive to both you and the developer. Keep in mind that the developer wants to, and may need to close so it must be something that is mutually beneficial to each party.

Good luck
Web Reference: http://BartSells.com
0 votes Thank Flag Link Thu Mar 26, 2009
There are a lot of variables in your question. It would depend upon the seller, whether or not they are willing and able to wait. If it is a foreclosure or short sale, they may not be able to. Your lender, is your lock in rate about to expire? Speak with your realtor who represents you! Tell him/her the situation. Make sure you check, you may not need to change it for the tax credit. Check with an accountant first. You may be able to get the tax credit anyway.

Good luck, you are smart to buy now with prices low and all the incentives.

Krista DeWeerd, Towne Square Real Estate, Jenison, MI
0 votes Thank Flag Link Thu Mar 26, 2009
Gixxer,

Changing the closing date is something that is commonly done...for a number of reasons. Make your agent aware of your needs.

To doe this, it is necessary to change the terms of the contract by doing an "addendum." This is simply a signed statement that indicated that adjusting the closing date is agreeable to all parties involved.

Good luck
0 votes Thank Flag Link Fri Mar 20, 2009
You can absolutely ask. The bottom line is this: it takes two parties to successfully close on time. They can always say no, however you might experience delays in locating documents, funding, etc.

Some contracts have penalties for closing late – read yours carefully. And then ask. They may be very understanding and fully cooperate. If they don’t … if there ever was a reason to have a Realtor represent you when buying from a builder, this would be a good one. All of this negotiation would be done by them on your behalf.
.
Web Reference: http://www.carlmedford.com
0 votes Thank Flag Link Thu Mar 19, 2009
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