Market Conditions in 75094>Question Details

SMG, Other/Just Looking in 75093

Back in August we purchased a home, They initially told us (verbally) that it would be ready in May. We were

Asked by SMG, 75093 Tue Mar 4, 2008

planning to list our home at $100 a sf. Now we will be lucky to sell it at $92
Now the builder says we are closing at the end of March and our current home value has dropped due to the foreclosures. We are stuck. Losing both ways.No contingency clause in our new contract either. Any advice?

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Were you represented by a realtor, if so where is your representation. Foreclosures based on comp's an appraiser only list one property in the comp's... unless the entire is foreclosed on. Usually during the "off season" properties values in some areas will be lower than April - Aug. We are a seller flat fee listing agent for $795 we list and market your home, in MLS... this allows families such as yourself to even out a potential lose. Contact our office we can discuss those details with you or visit our website http://www.lynn911.com there is further explaination. NOW have you had your realtor work with the builder off your situation everything is open to negotiation we usually have to work these issues on the behalf of our client. How much money did you put down? We don't usually advice our buyers to purchase a home till their other home sales.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Mar 4, 2008
Yours too much marketing rather than helping a person in trouble.
Flag Mon Feb 11, 2013
Sally, even if you didn't have a contingency on the sale of your house in the builder's contract, if the funds you were using to buy the new house were coming from the sale of your house, that would still be a contingency. If you are using the builder's lender, they may try to keep your earnest money. That should be extent of your loss.

I don't know of any neighborhood in Murphy where the values have dropped that much in the last few months. Which community are you located at? Get a second market analysis done ASAP.
1 vote Thank Flag Link Tue Mar 4, 2008
Sally, Most of the foreclosures that are for sale in RR have been on the market since last fall. The good news is that people are still buying lots of homes in RR. Actually 14 foreclosures have sold in RR since the end of October and many more from the builders. None of those homes had a pool either. I don't think that backing to Betsy would be a big downside because it's only residential traffic through it. I actually showed your house in November and the backyard was not an issue at all for my buyers at that time.

It sounds like you are building a custom home so I am sure that the builder will be willing to work with you on the closing date. 30K was probably for upgrades. If you are downsizing, you may want to offer sone incentives such as including the media room equipment in the sale etc... to attract buyers.

Naima
0 votes Thank Flag Link Tue Mar 4, 2008
Our home is in Rolling Ridge. The first CMA I got back in September was $102 sf. We listed in October for $101 and now at about $94. Which is less than what we have put into the home, pool, electric iron gate, alot of hardwood, media room design etc.
Our home has alot to offer, 5 full br 5 full ba -almost a full kitchen upstairs, huge courtyard to fit alot of cars,,etc, etc. The downside to many buyers is it backs into Betsy. - which was never an issue for us. Its very quiet here and only residential. My pool is private, even if you tried to look in my yard while driving by, my yard is pretty secluded.
0 votes Thank Flag Link Tue Mar 4, 2008
We put our home on the market back in October, but since then the homes in my neighborhood have declined and there are so many foreclosures that we had to lower our price to the minimum. We have our home listed with a realtor, but chose to purchase the new home without. Our contract does not specify a closing date. It states that the builder must have the home completed with in 2 years. We have put over $30 k down on the new one. The thing is that if I lose the new one, I will take my current home off the market and stay here. THe sad thing is that this house Im trying to sell here, sells for over $800k in Plano.
I truly love this home and I will miss it, but it is way too big for 2 people and we need to be closer to our business.
0 votes Thank Flag Link Tue Mar 4, 2008
Sally,
If you are using a Realtor for either transaction (buying new construction or selling your current home) I would recommend that you have them review the contract with you to see what your options are. Depending on the verbage, you may also want to consult a real estate attorney.

New homes take an average of 6-months to complete, so March does seem to be the right timeframe. However, depending on the custom features, size, and location of the home that timeframe could vary. Does your contract specifically state an estimated closing date? If so, that may help determine some of your choices.

Is you current home on the market now? Was it on the market when you decided to purchase the new home? If you signed the contract to purchase the new home contingent on the fact that your previous home sold, you may have a way out of the new home purchase (but you will lose that home and be stuck with your current home).

I sincerely hope that you have a professional Realtor to look to during this time, as their guidance will prove to be very valuable as you proceed. Good luck!

Melissa Hailey
Coldwell Banker Jane Henry Realtors
Chaning lives, one home at a time
214-418-0180
0 votes Thank Flag Link Tue Mar 4, 2008
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