Home Buying in 11552>Question Details

Bils Bel, Home Buyer in 11552

I signed a contract for a new construction home in Aug and the builder recently dropped the asking price by 20K.

Asked by Bils Bel, 11552 Sun Oct 23, 2011

Do I have any chance of renegotiating my selling price or possibly negotiating for extras (for example, hardwood floors or granite countertops)? Permits are still pending & the builder hasn't broken ground yet. Addtnl Info: There are approximately 10 lots left in the community. I believe the builder is attempting to unload the less desirable lots in the complex (train tracks behind backyard). Some of the lots are still priced at the original listing.

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Nina Harris/CBR/SFR’s answer
I would certainly give it a shot. If you hada buyer's agent, maybe you could go back to him and have him renegotiat. Or seek out a real estate to review your contract to see if it's possible to get a price reduction. If not a price reduction, perhaps some perks such as granite, upgrade in fixtures, etc.
Are the lots in the same location as the one you purchased or in a less desireable location? Does your contract read somerthing requiring them to sell at best available price? Are the units not appraising at closing? These are issues you should speak to your attorney about and he could give you better guidance.
1 vote Thank Flag Link Sun Oct 23, 2011
Bils, did you have a buyer's agent in the transaction, or did you rely on the builder's staff?
0 votes Thank Flag Link Sun Feb 3, 2013
Most National Builders have a clause in their contract that protects them in case their is a price drop. In addition the builders generally offer better "deals" on specs(homes that have already been built) rather than pre-sales.

Here is an example of the wording in a contract that is used by a builder I reduglarly work with:
Seller may, before or after Closing on the sale of the Property to Buyer, raise or lower sales prices for similar homes or other homes of the same plan or offer sales incentives to other buyers in response to market conditions with no obligation to the buyer.

Check your contract to see if the builder has protected themselves. They generally do.
0 votes Thank Flag Link Sun Feb 3, 2013
Check with your attorney, but contracts are usually not re negotiable unless they do not have your home finished by the date specified on the contract. You can always call and ask them or your agent to try and get some form of upgrade as a gesture of goodwill.



Regards,

Marco Gomez
Associate Broker
Keller Williams Landmark II
Queens, NY
0 votes Thank Flag Link Tue Oct 25, 2011
Long story, let's just say I lost a "chunk of change" :0). In my case, the price drop was actually a sign of the "housing market collapse" or whatever you want to call it. Hopefully, and I think it is, your situation is much different.

I actually think you may have a chance at getting "something." I think it just depends on the approach you, under the advisement of your agent and attorney, choose to take.

All the best!
Web Reference: http://www.bverealty.com
0 votes Thank Flag Link Tue Oct 25, 2011
Thanks for your answers. I appreciate the feedback.

Nina, not all of the other lots are in the same location as the one I purchased. My lot is approximately 7-8 lots away from the newly lower priced lots. The remaining lots that are similar to mine are still priced the same. At first glance, I don't believe my contract has language requiring the builder to sell at best available price. I'll be in touch with my attorney today to confirm and review my options (if any). The in-house mortgage broker said the units were appraising above sale price. However, that could have been just talk. I do not know where or how to confirm that info.

Robbie, out of curiosity, what was the outcome in your situation? I'm really not trying to get my hopes up, but I do want to explore my options and hear of any possibilities.

Anna, I will definitely have this discussion with my attorney and agent. It's worth a shot! Even if it's for an extra ceiling light.
0 votes Thank Flag Link Mon Oct 24, 2011
I actually had the same thing happen to me! You say the remaining lots are less desirable....that is likely the reason for the price adjustment. I agree with the previous responses, re: speaking with your agent and attorney. There may be something in your contract that helps you out in this situation. Good luck!
Web Reference: http://www.bverealty.com
0 votes Thank Flag Link Sun Oct 23, 2011
If you have an agent ask him/her to renegotiate for you; one can always try to negotiate price, as well as extras, have the discussion and see where it leads; what is your attorney advising...
0 votes Thank Flag Link Sun Oct 23, 2011
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