About to close on a home that has already lost $$ (Phoenix: real estate, to rent)

[djb2002]

Thanks for the advice. The thing that really pisses me off is the lack of caring/communication on both the builder and mortgage company's part. I sent both my sale rep with the builder and my loan processor e-mails yesterday stating my concern. Received one e-mail from the sales rep today saying she's been out on vacation (again) and will look into the matter. Never heard back from her and my close date is in 2 days. I don't know what to think. I really like the home and have been excited to move in at the end of the week until I saw that new buyers will get a lower rate. I cannot and will not pay 20K more than the next guy on principal even though it seemed like a decent value at the time I decided to purchase. I cannot believe how unprofessional these businesses are and the people they hire to represent their company. I've had several problems throughout the whole process. Maybe this stumbling onto the new reduced price was a sign telling me to walk away and pay the 3K for the lesson. This whole situation has just left a bad taste in my mouth.

[sheena]

Originally Posted by djb2002

Thanks for the advice. The thing that really pisses me off is the lack of caring/communication on both the builder and mortgage company's part. I sent both my sale rep with the builder and my loan processor e-mails yesterday stating my concern. Received one e-mail from the sales rep today saying she's been out on vacation (again) and will look into the matter. Never heard back from her and my close date is in 2 days. I don't know what to think. I really like the home and have been excited to move in at the end of the week until I saw that new buyers will get a lower rate. I cannot and will not pay 20K more than the next guy on principal even though it seemed like a decent value at the time I decided to purchase. I cannot believe how unprofessional these businesses are and the people they hire to represent their company. I've had several problems throughout the whole process. Maybe this stumbling onto the new reduced price was a sign telling me to walk away and pay the 3K for the lesson. This whole situation has just left a bad taste in my mouth.

I don't think these builders and mortgage people expected the market to be this bad. When I signed on my home the contract price was 470,000 in Feb 2006. By the time we would have closed the builder dropped it to 410,000. That still wasn't good enough we said no. The last time I looked which was months and months ago it was down to 370,000, thank goodness we said no. Not worth it in todays market for 2,500 sqft on a tiny lot with an 80.00 HOA which includes nothing, not a pool, not a clubhouse nothing!

Anyway 3,000 is not much to walk away from but if you really like and you don't think the bottom will fall out, like mine would have, maybe you can work it out with them.

[MotleyCrew]

I am curious as to what development you had put a deposit down in. I would think that they would want to make it right and the lack of communication is puzzling to me. If I were a builder it would be more important to retain a buyer at this point than have another empty lot. Good luck.

[Monster Daddy]

If this is the type of service you are seeing PRIOR to closing just think of how great the service will be AFTER close. /sarcasm Could be the sign of an imploding builder.

At this point I wouldn't close unless EVERYTHING in the house was in tip top shape.

P.S. I am also curious as to which builder this is.

[sierraAZ]

Originally Posted by djb2002

Should I walk? I just noticed on the builders website that the same home in my subdivision that I will be buying for x amount is now being sold for about 12% less. At that rate, I may never gain equity with the current market. I only have 3K invested as earnest so I'm thinking if I cannot get the builder to drop the price for me, I am walking. I think I may have some leverage because of the small investment I made and the fact that they would have to sell my home as spec home for the new price. I know the media is doom and gloom, but I wouldn't want to take that kind of hit in a healthy market let alone one that may be dropping further. Any advice would be appreciated.

Would you please let us know what the outcome turned out to be.

[sablebaby]

Originally Posted by djb2002

Thanks for the advice. The thing that really pisses me off is the lack of caring/communication on both the builder and mortgage company's part. I sent both my sale rep with the builder and my loan processor e-mails yesterday stating my concern. Received one e-mail from the sales rep today saying she's been out on vacation (again) and will look into the matter. Never heard back from her and my close date is in 2 days. I don't know what to think. I really like the home and have been excited to move in at the end of the week until I saw that new buyers will get a lower rate. I cannot and will not pay 20K more than the next guy on principal even though it seemed like a decent value at the time I decided to purchase. I cannot believe how unprofessional these businesses are and the people they hire to represent their company. I've had several problems throughout the whole process. Maybe this stumbling onto the new reduced price was a sign telling me to walk away and pay the 3K for the lesson. This whole situation has just left a bad taste in my mouth.

I don't think emails are the best way to go when you are now 2 days away from signing! Call them!

Also, you have to remember, these people are in SALES. There's no hand-holding when it comes to sales. The RE industry doesn't really care about concerns, they care about getting things CLOSED.

[Matthew Pellerin]

I've seen many, many builders give price reductions in a case like this. So, the advice you've been getting here so far seems right on track.

I am very bullish on the Arizona real estate market. Many new people move here every day and need homes. So, the over stock of inventory will be reduced soon and things will be back on track. Have faith... or, you could wait until the market picks back up and buy at a higher price in a seller's market. Of course, that doesn't make much sense, but is a good argument for moving forward with your purchase if you can get your home priced down to what the others are currently selling for.

Originally Posted by sablebaby

The RE industry doesn't really care about concerns, they care about getting things CLOSED.

Sounds like someone had a bad experience, but no fair making generalizations.

[ArizonaBear]

Originally Posted by Matthew Pellerin

I've seen many, many builders give price reductions in a case like this. So, the advice you've been getting here so far seems right on track.

I am very bullish on the Arizona real estate market. Many new people move here every day and need homes. So, the over stock of inventory will be reduced soon and things will be back on track. Have faith... or, you could wait until the market picks back up and buy at a higher price in a seller's market. Of course, that doesn't make much sense, but is a good argument for moving forward with your purchase if you can get your home priced down to what the others are currently selling for.



Sounds like someone had a bad experience, but no fair making generalizations.

Time will tell-------especially if California's RE market implodes. That will take down Arizona-------hard.

[sierraAZ]

Originally Posted by ArizonaBear

Time will tell-------especially if California's RE market implodes. That will take down Arizona-------hard.

Not necessarily... People come here from all over. Californians were actually the ones who did the most damage during the craziness. I also believe in the long-term potential of AZ. If I only had the same belief in the long-term potential of the country, though...

[ArizonaBear]

Originally Posted by sierraAZ

Not necessarily... People come here from all over. Californians were actually the ones who did the most damage during the craziness. I also believe in the long-term potential of AZ. If I only had the same belief in the long-term potential of the country, though...

Maybe down Tucson way but here in the Phoenix area prices are definitely crashing in the outlying areas and are showing signs of distress in in the Tempe/S Scottsdale/Arcadia area.

And; the market is 'correcting' itself in Bullhead City, etc.

What may also be propping up Tucson is you guys' proximity to Safford where the mines are coming back online.

Another joker in the deck is with the impending legislation yanking the business license of of a company for knowlingly hiring an illegal immigrant--------many of the latter group 'sense' this is the real deal and are fleeing to other states------or back to Mexico. Some of these individuals are putting up their property up for sale.