Home Buying in Overland Park>Question Details

Kumar, Home Buyer in New Jersey

New Construction in overland park

Asked by Kumar, New Jersey Wed Apr 16, 2008

Why are builders not accepting contingeny clauses. I am planning to move to KC overland park area but i have to sell my house in the coast and want a contingency that will allow me to sell my home . Is the market soft for new construction that they are not willing to build a spec home?


Help the community by answering this question:


Well, yes. Builders have been hit hard by the slowdown. The market overall is right about par. But builders are not in a position to hold on to houses that don't close because like everywhere the lending atmosphere is punative and expensive.
Web Reference: http://www.bbqcapital.com
1 vote Thank Flag Link Wed Apr 16, 2008
The basics here is that the contingency is solely based on your home selling and requires the builder to take the home off the market. You will be better of to slide into Kansas City with a proceeds check in hand. With NEW construction being the way it is you will not only be able to make a deal, you could probably get the exact house that you are talking about. Good luck, do you have everything else lined up for your big move?
0 votes Thank Flag Link Tue Jun 3, 2008
We are in a buyer's market right now, and although things are looking up, most builders are not willing to take the chance that you will close on the new home. A contingency on a pre-existing home is really just a right of first refusal, meaning, another offer could come in on the house, and if you don't remove the contingency, they can accept the other offer. A contract, being contingent on your home in New Jersey selling, offers the builder no guarantees. Some experts estimate that there is about a 10 month supply of homes available in the KC metro area right now. Normal supply is about 5 to 6 months. That means, buyers are being picky, and banks aren't allowing builders to be as risky (building ahead) as they were just 3 short years ago.

One suggestion would be to rent when you first move here, wait for your house back home to sell, then look to build. While not great, having to move twice, it will allow you to get into the area, research important info, like schools, neighborhoods etc, then make the decision on where to live. It will likely be less stressful knowing that you no longer need to wait for your home to sell, before you can close on your dream home.

In the meantime, to search for information about the KC area, please visit our website, http://www.RealtyXkc.com for information. Not only can you search for area homes for free, you can also get useful information on schools and city demographics.

If we can be of any assistance, please do not hesitate to call or e-mail.

Aaron and Shannen

Aaron and Shannen Merrick
The Merrick Team
Realty Executives of Kansas City
Fax: 913-642-7053
Web Reference: http://www.RealtyXkc.com
0 votes Thank Flag Link Thu May 8, 2008
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