Home Buying in 94539>Question Details

Sivan, Home Buyer in Fremont, CA

Warm Springs Kb Home price adjustments

Asked by Sivan, Fremont, CA Fri Feb 13, 2009

We bought a SFH in warm springs KB home community and they have been cutting down prices since then.

I was just wondering, if anyone has been given price adjustments according to the new prices. I am not closing the home for the next few months and am wondering what they are saying regarding adjustments for homes closing this month.

I was told that prices are adjusted for folks only if they are 60days before closing. I was asked to wait until I get the 60day closing notice. This didn't make sense, as they may jack up the prices by then and deny the credit back.

Appreciate if anyone, who is in the same situation can reply to this. I'm just trying to see, if they are consistent with their rules.

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Answers

21
Hi Plum, I am sending some listings of homes in that area to another person on trulia if you would like some also please give me your e-mail....Dawn
Web Reference: http://DawnRivera4Homes.com
0 votes Thank Flag Link Tue Feb 17, 2009
Another Home Buyer in Kbhomes kato road: I am also planning to backout if they will not do price adjustment. My email is yum_yum_plum@yahoo.com, if anyone know good deal in 620k for single family in 94539 code.
0 votes Thank Flag Link Tue Feb 17, 2009
To all the buyers on this post:

My suggestion would be that you hold onto your cash at least until May, but monitor the specific housing segment you are targeting using pre-set automated MLS search agents via email. President Obama should sign HR1 within the next few days reinstating the $729,950 conforming cap, which may be a factor in your housing selection.

Loans that are not being purchased by the Fannie/Freddie (jumbos) are being priced at a premium to counter not having the Fannie/Freddie liquidity option. For example, the Jumbo-Conforming spread was about 1.8% late Jan/early Feb but now it's around 1.1% (going in the right direction for sure). Historically, and until July 2007, the spread or difference between conforming mortgage rates and jumbo rates moved within a narrow range of about 0.20%.

The lowering of rates in conforming (and agency conforming) loan amounts, along with a continued reduction in base Real Estate prices are two trends that shout to prudently informed buyers to wait. However, this strategy must be coupled with active market monitoring to be successful. Do not take your purchasing advice from the evening news - team with a professional Realtor to get the benefit of continual market monitoring.

Best Regards, Steve
0 votes Thank Flag Link Mon Feb 16, 2009
Dawn,

My e-mail address is skndls26@gmail.com

Thanks!
0 votes Thank Flag Link Mon Feb 16, 2009
Hi skndls, if you give me your E-mail I can have the current listng in that area and price range E-mailed to you then you can look at the pictures......Dawn
0 votes Thank Flag Link Mon Feb 16, 2009
Hi Skndls26, there are currently 5 detached and 15 attached homes available between $190K to $580K.

Checked on searching at $750K to look for REOs to possibly negotiate downward to stay below your $650K target to achieve more to choose from: No additional attached listing, 10 more detached (2 REOs).

Best, Steve
0 votes Thank Flag Link Mon Feb 16, 2009
Dawn,

We were interested in a new home but an old home would work as well as long it is in the 94539 area and cost no more than $650k .
0 votes Thank Flag Link Mon Feb 16, 2009
skndls, Do you have to have a brand new home? could you be happy with very nice homes that are not brand new but have larger lots and are still in the 94539 area? Dawn
0 votes Thank Flag Link Mon Feb 16, 2009
We pulled our deposit back a few days ago. Majority of the reason was the sales rep. She would say something one day and then say something else another days. There were a few days she was supposed to call me back but never did. When did you put the deposit down and what did they offer you? I am still looking for a house in the 94539 area. Where else have you seen better deals?

Sam,
0 votes Thank Flag Link Sun Feb 15, 2009
hi,

we have a down payment for a single from this location as well and is really unhappy with the sales rep that do feels like playing games with us. we have not have our final contract to date and looks like we are closing pretty soon.

no sure if we are going to follow through with the purchase. might let go our deposit as saw some better deals somewhere else with better home and service.
0 votes Thank Flag Link Sun Feb 15, 2009
Out is Single-family home.
0 votes Thank Flag Link Sat Feb 14, 2009
Thank you. Ours is a Townhome. What about yours?
0 votes Thank Flag Link Sat Feb 14, 2009
Yes, the previous time they gave me price reduction, we were told that incentives will be taken back. We were Ok with that because price reduction was higher than value of incentives.

Sam,

I think you should worry about the final value of the stuff you ar buyin and whethere it's fair price that others are receiving today. If you are not in that boat, go ahead and talk to them again and again.

I basically told them, I will back out if the price is not reduced this time around. They agreed to give that at the base price advertized today.
0 votes Thank Flag Link Sat Feb 14, 2009
Iam a home buyer too and am supposed to close soon, looks like they are not being fair. When we asked they said they can only adjust certain amount and always say we got lots of incentives already and for someone who is buying now would get that price....there is no transparency, I wish all th home buyers realise and share information so that we all will be benifited. Seller is always a seller and they want to make profit. I would suggest to ask for an addendum with the adjusted price and then u will know what are they upto
Let us know if u have any info about getting the deposit back. Also if there is anyone who is closing soon let us know if you have any info about price adjustments..
0 votes Thank Flag Link Sat Feb 14, 2009
Hi Sivan, I obviously do not have the luxury of reviewing your contract; however, it would be in your best interest to negotiate before any contractual lock-in triggers. Additionally, a certified letter regarding your position sent to the builder is another tool.

Also, do read my post regarding Realtor representation when buying from builders (a response concerning this very project):
http://www.trulia.com/voices/Market_Conditions/Want_to_know_…

There may be a couple of "Hmmm" moments when you review it. Let me know if I can help.

Best, Steve
0 votes Thank Flag Link Sat Feb 14, 2009
I'm not in contract with KB yet. I only signed the offer contract, if they accept our offer then they would put the deposit into escro, if they did not accept the offer or we did not accept the counter offer the deposit is can be refunded. I think you purchased plan 3 which is going for around $668 now?
0 votes Thank Flag Link Sat Feb 14, 2009
Hi all, I am not too surprised by what you all are saying. the economy is bad for everyone, including the builders and they will have told their sales people to "do the best they can" Although I too feel you should get what ever reduction they are currenty giving. Do any of you have a Realtor? The builders pay the Realtor so you get the benefit of a Realtor on your side at their expense ......Dawn
0 votes Thank Flag Link Sat Feb 14, 2009
Yeah...I'm also surprised on why they are not adjusting now, if they had done it earlier. Interestinly, they cut prices beginning of this year by 25K and when we asked them for adjustment, they said they submitted the offer to the corporate office (just like what they did when they cut prices the first time around). While that was in the process, they cut down the price again by 38K. When we called this week, they came back with an answer saying that the process has changed and the rules have changed and prices are adjusted only 60days before closing. I never was told about the change of rules.

How are you collecting the deposit? Do you have an attorney? What do you advise?
0 votes Thank Flag Link Fri Feb 13, 2009
What does it say in your contract? If they let you adjust it before, they should let you adjust it now unless it say in the contract 60 day prior to close of escro. We are having a differernt issue. We were are given info on the day we put the deposit and then different info the next day. With the way the economy is going, the sales rep should really try to provide excellent customer service and do everything they can to close the deal. With money on the table they won't close the deal for 6K. We are going to collect our deposit this weekend!
0 votes Thank Flag Link Fri Feb 13, 2009
Hi, I bought this when the asking price was 737K. They gave some incentives. But, when they initially brought prices down to 712K, they took away incentives and cut down the base price (an addendum was given at that time). However, this time, they have changed the tack and are saying that adjustments will not be made until 60 days before the close. I will have to wait for 1-2months before the closing process begins. I feel that prices will be jacked up by that time. Maybe, I'm worrying too much. But, didn't make sense......
0 votes Thank Flag Link Fri Feb 13, 2009
Sivan,

What plan did you buy, when did you buy it and how much did you buy it for? I was told the same thing about price adjusments. If the asking price on paper is lower they wil adjust your price within 60 days fo close. I feel the sales reps there play games on how they offer the incentive and homes. Did you get any incentives?
0 votes Thank Flag Link Fri Feb 13, 2009
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