help: bought a house, under construction, thinking to drop (mortgage broker, construction loan)

[gregandvicky]

arun196

take a look at this article

In Arizona, 'For Sale' Is a Sign of the Times - New York Times

[johnrex62]

As everyone has said, look to your contract for the extent of your damages. There should be a section that addresses damages and recourse for nonperformance on the part of all parties involved. If your liability is not limited by specific language or the seller/builder's damages are not similarly limited, then you are on the hook for the entire contract price even if you back out. In my area it is call Specific Performance. A lawsuit for Specific Performance means that you can be forced to complete the contract or pay off the contract price as damages.

Realization of factors after the contract are not legal reasons to break the contract unless they are factors intentionally hidden or misrepresented by the seller. It does not sound like that is the case here. You just got better informed too late.

You should immediately address this with the builder. You may be able to get out of the contract if you agree to pay for all expenses incurred to this point and a little something for time and inconvienence.

If you tried to back out of a construction contract after work had commenced with me, you would be in court quicker than you could blink. Especially if I had a property in a bad area that might be losing value as I hold it. Once I had a sucker for the property legally contracted, I would not lose you without a fight.

If you are a really good shmoozer, you might get out ok. I would certainly try if I were you based on what everyone has commented about the area. Be nice, polite, and if you don't irritate them too much they may let you go without scraping off too much skin.

[Magnum Mike]

Actually the area of 35th Ave & Baseline is not as bad as it used to be in the past. I know there are worse neighborhoods if you go further north towards Buckeye and Van Buren, but that area of Baseline has (or had) a lot of empty fields and farms in the past.

On negotiating a lower price, look at the contract and talk to the builder. If that doesn't work, talk to the mortgage company and let them know about the questionable value of the property. Sometimes they may only fund exactly what the projected property value is, and if it's dropped since you decided to purchase the house, the financial institution you're getting the mortgage from may only fund what the property is worth, so that can work to your advantage. Also, if the builder completes the house after the promised date, you may be able to get the house cheaper than $290K, or even walk away with a full refund of the $3,000. That again depends on what the builder promised in the contract you signed, so you'll have to look it over again. Sometimes nothing is quite final until the house is built.

[prettybird]

Originally Posted by arun196

Hi all,

I bought a house in baseline rd, 35th ave in courtland homes around 2700 sq.ft including upgrades coming upto 290,000. I made a down payment of 3000$ and expecting the house to be build by oct-nov 2007. Looking at the phoenix market and median home prices going down. And everyone is telling me baseline is crime ridden area. I'm thinking its a bad time and bad neighbourhood to buy a house. I'm thinking buying a home around dec 2008-june 2009 will be a good time. As I made a down payment of only 3000$, i'm thinking to back off from buying this home.

Any ideas????.

Have you even seen the neighborhood? My husband wants to know if they started construction? We live in Marion County and know the area. They tried to sell us a house up there and I do not like it. Especially not Baseline! Every area has its good and bad in it. It is not like one town is great down here and the next town over you have to run thru it. It is all combined. That is just the way it is down here. Where your house would be built you can go to the Villages which is very very nice. I would recommend this depending on your age. The other shopping is in Ocala which is not the greatest. Depending of your age there are many other places that are much nicer. Especially for that price. I would not buy a house in that area. You really should check out other areas. But please do not let this sway you. No matter what 3000 is still alot of money and you must of thought about before you signed all those papers.

[Marana_AZ]

Originally Posted by joankevin1

Have you even seen the neighborhood? My husband wants to know if they started construction? We live in Marion County and know the area. They tried to sell us a house up there and I do not like it. Especially not Baseline! Every area has its good and bad in it. It is not like one town is great down here and the next town over you have to run thru it. It is all combined. That is just the way it is down here. Where your house would be built you can go to the Villages which is very very nice. I would recommend this depending on your age. The other shopping is in Ocala which is not the greatest. Depending of your age there are many other places that are much nicer. Especially for that price. I would not buy a house in that area. You really should check out other areas. But please do not let this sway you. No matter what 3000 is still alot of money and you must of thought about before you signed all those papers.

Joankevin1, she's talking about 35th and Baseline in Phoenix, Arizona, not Florida, which is where I think you're talking about.

[mazy]

I think it is a great time to buy. But I would be worried about who the builder is. I would get inspections for sure!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Also check out JD POWER AND ASSOCIATES NEW BUILDER SURVEY IT RANKS ALL THE NEW HOME BUILDERS 2006. IT IS A BUYERS MARKET WHY WOULD YOU WANT TO WAIT UNTIL PRICeS GO UP AGAIN

[mazy]

Although the area is NOT the best I would be worried about that too

[EDnurse]

I don't think you'll be able to sell that house on Baseline for 290,000 in two years from now. Are you positive you will be in the house for 10 years?There's a reason you got a good deal: builders are desperate to get rid of the inventory. I've bought two houses from AZ builders in the past 10 years. I think you might be able to back out of the deal, but you can kiss your earnest money good bye. Read your contract closely. I'm surprised they only asked you for 3K. It used to be 2 or 3 percent. Good luck

[imtaya2]

my husband & I were able to negotiate our price home with our builder. We basically told them that the market is on a down turn and we are willing to give up our 2% earnest $$$. They offered a Discount we couldn't refuse. Basically we got all our upgrades for free & more. On the other hand, our friends decided to give up their $10,000 earnest because my husband was able to show them the trend.
I agree with the posting that said that you should give up for the reason of the neighborhood not pricing because you never know where the market is going.

[sheena]

Originally Posted by arun196

l

yeah, but for 2700sqft, i would be paying 100k more in chandler or gilbert for a new house. My wife will be studying in asu and I work on 51st, elliot. I really cant find anything close to my work and asu within my price range other than laveen.

Most of the new houses in baseline 48th st-61th ave for a new house for over 2700sqft is notting less than 280k including upgrades.

I'd pay for extra for the better area. I'd live in less square feet and pay more money. I've had my share of those kind of neighborhoods. That's just me though, some people are totally fine with those areas.