Home Buying in Little Elm>Question Details

Nj2tx, Home Buyer in Frisco, TX

If we have already signed a purchase agreement with a builder, can we still negotiate for help with closing costs and add mortgage contingencies?

Asked by Nj2tx, Frisco, TX Thu Apr 28, 2011

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9
Builders are much more likely to renegociate then a pre-owned home. Wont hurt to ask...
Web Reference: http://www.realtordamon.com
0 votes Thank Flag Link Wed Jul 13, 2011
You lose your position of power once you sign on the dotted line. The builder's contracts if you used them should have had options for mortgage contingencies and the closing costs should have been negotiated before you signed. You can possibly still negotiate this but you will most likely have to raise the price of the home to absorb the costs.

When buying a new build home always remember that the builder's agent works for the builder. His job is to get you to pay as much as possible for the property because he makes more this way. Using a Realtor costs you nothing and gives you somebody on your side to fight for your best interests. I am assuming you did not have a Realtor representing you during the process.

At this point you should review your contracts carefully to see what you actually signed. Maybe there is a contingency and you may still have an out if that is what you want to do. If you do not have any outs you need to speak with the builder ASAP to rectify the situation as best as you can. At this point it could mean you have to lose your your earnest and/or deposit monies unfortunately.

I wish you the best of luck with your purchase and hope you can work things out to your liking.

Don Groff
REALTOR | Mortgage Broker | Consultant
Buy - Sell - Lease - Invest
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes Thank Flag Link Sat Apr 30, 2011
Lesson learned for others thinking of buying a new home in Denton County, and anywhere else in Texas. You don't negotiate after you've signed the purchase contract. Go in with a strategy and don't sign your name until you get the house that you want at a fair market value you are willing to spend. Real estate agents cost a buyer nothing in most cases, and they represent your interests and not the builder's.

If you just signed the agreement and you're having some remorse, ask the sales rep to request that the builder release you from the agreement so you an move on. Some will let you out without hesitation. A disatisfied customer isn't worth the problems they'll encounter later on. But, how and if you are released from that contract depends on the terms of the contract you signed. If you don't understand them, then get with a lawyer for consultation. Time could be of the essence.

Best wishes,
Ronda
0 votes Thank Flag Link Fri Apr 29, 2011
Builders/sellers want to make sure you are able to close on the property and will do what they can to get you in the home as long as they see you are honoring the contract. If you need additional help with closing costs, or mortgage contingencies there's always a way to negotiate around a deal. The sales price can be raised by a few thousands for example to allow more closing cost contribution, or a closing date extended if needed.

If you have an agent contact him/her and explain the situation. If you dont have an agent, I highly recommend you contact a real estate broker. On site builders reps represent the builder not you. You need to have representation, and its free. If you need help my information is below.

JP Piccinini
Real Estate BROKER - REALTOR - ALHS
DFWTXRealEstate@gmail.com
http://www.dfwtxrealestate.com
(C) 972-836-9295
0 votes Thank Flag Link Fri Apr 29, 2011
I have worked for local builders and been a builder, so I know how they operate. I am based in Little Elm, TX. If you would like to contact me directly, I think I have a few things that might help you. 214-234-6901
0 votes Thank Flag Link Fri Apr 29, 2011
Your buyers agent should be providing you the assistance. All is based on executed sales agreement

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Apr 29, 2011
Nj2tx,
You can reopen negotiations, but the builder has no obligation to change terms that were already agreed to. What if they wanted to reopen negotiations and raise the price and cancel some upgrades you requested? Chances are you would say no.
If you used the builder’s agents, they represented the builder and had not obligation to suggest terms which weren't favorable to the builder. You can have an attorney review your contract and see if you can get out of it. If you can, you can request changes if you are prepared to walk away with a legal escape. If you really want to buy the place you started with, this may be tough. Best of luck.
0 votes Thank Flag Link Thu Apr 28, 2011
Doesn't hurt to try, but they may want to stick with the contract you have signed.
They likely won't take a reduced price, but may be able to increase the price to allow you to roll in closing costs, as long as the house will appraise for the new sales price.
0 votes Thank Flag Link Thu Apr 28, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Negotiation time is before you sign a purchase agreement. I assume you did not use a REALTOR®?
Web Reference: http://topbrainerdagent.com
0 votes Thank Flag Link Thu Apr 28, 2011
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