Home Buying in 30339>Question Details

Buyer, Home Buyer in 30339

We have signed a contract to build new home few months back. We were negotiating with them on the price and gave them offer for the less as well. But

Asked by Buyer, 30339 Thu Apr 8, 2010

they didn't accept it. Then one day they called us and agreed on some price in b/w wat we asked and they asked. So we signed the contract and gave the deposit.
The closing on the home will be next month. And we came to know about the same houses sold in same subdivison at the lower price during same time. What should we do in this situation, as we have already paid 5% of the amt., which is in escrow act.
It doesn't make any sense to close the home which is already in deficit. Please advise? If we talk to builder abt it, how and what?

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The short answer is you should consult with an attorney.

Look through the contract to see if there is an appraisal contingency. If homes are selling for less, the home won't appraise and depending on what kind of financing are you getting you may not be able to get the loan amount you'd need to purchase the home. The contract should outline what happens in the case of a default.

Did you have Buyer Representation from a real estate professional? Just curious.

I hope this helps.

Stacy Carter
Better Homes & Gardens Metro Brokers
2 votes Thank Flag Link Thu Apr 8, 2010
Stacy has given you good advice. Get the closed sales data, compare the upgrades you have to the one in the comprabables to you home and see if there is the loss you think is there.

Then once you have the actual written data, go see the builder and ask for an adjustment. Listen to what he says and them go home and think through the ramifications.

To settle your concerns you may have to order an independent appraisal as you are probably concerned the mortgage and the builder relationship prevents you from have a truly independent lender representing you in this transaction.

I hope you can get this resolved so that it does not tarnish the joy of the new home.

Sally W. Hamby
THE SALLY TEAM at Fidelity Bank Mortgage
404 644 7696
1 vote Thank Flag Link Mon Apr 12, 2010
Based on your answer it sounds like you're tied in to this builder. Hopefully the process has, up to this point, been a positive one. Sitting down with the builder and sharing your concerns about the property value may result in a compromise.

If you need help building a case through recent comps, just let me know. I'd be happy to e-mail you a few.

Email me at stacy@homeappreciators.com or stacycarter22@bellsouth.net.

Glad I could help!
0 votes Thank Flag Link Fri Apr 9, 2010
Thanks Stacy,

There is no appraisal contingency clause in contract. And for the mortgage we are signed up with builder affiliated mortgage co., so i think the loan amt. will not be problem from them.
We are going to talk to builder, lets see if they agree or will go to attorney.
0 votes Thank Flag Link Fri Apr 9, 2010
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