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Old 10-22-2010, 01:17 PM
 
58 posts, read 89,361 times
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The VUE Buyers are hopping mad at this article, I can tell you that!
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Old 10-22-2010, 01:35 PM
 
Location: Wouldn't you like to know?
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But you guys already knew there was a court case w/precedent against you, correct? So, why are you mad at the article?? Its not the article's fault.
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Old 10-22-2010, 02:20 PM
 
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Sorry, we're not mad at the article...we are mad at what we read in the article...most notably, that there is no compromise on price even with the low appraisals.
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Old 10-22-2010, 04:46 PM
 
171 posts, read 278,194 times
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I guess I am not understanding why you would expect a reduction in price if you agreed to pay X for the place. If the place had appraised for a lot higher, would you have offered up X + difference to the builder as compensation? I wouldn't think so. You guys said you signed these contracts knowing the "risk". So this was the risk and it has come true. In any case, the anger and other emotions won't do much to solve the problem. I recommend, as I did earlier, consult on an individual basis with legal council if you are deciding not to close.
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Old 10-22-2010, 06:55 PM
 
58 posts, read 89,361 times
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I think the vuebuyer blog pretty well explains why it is not a persuasive argument to say that if prices had gone up we would compensate the builder X+. We all bought on the assumption that they would go up. And the builder pitched his units on the "get in now at pre-construction prices."

There are some comments on the Charlotte Observer article that make some excellent points as to what may be going on in MCL's mind and why they are doing what they are doing. But it is also clear that we expect a reduction in price because otherwise the building is going to remain mostly empty. The majority won't or can't buy if they have to pay above the appraised value.

Many folks I have talked to are working with their lawyers to see what their options are. It's a messy situation all around. Emotion doesn't help solve the problem, but it is not good to hold in stress. One needs to release it.
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Old 10-23-2010, 07:21 AM
 
Location: Wouldn't you like to know?
9,114 posts, read 15,687,630 times
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Quote:
Originally Posted by vuebuyer10 View Post
We all bought on the assumption that they would go up. And the builder pitched his units on the "get in now at pre-construction prices."


That is the problem right there. You bought on the ASSUMPTION that prices would go up and the builder coaxed you into it.


This is YOUR fault for doing sloppy homework and buying with emotion plain and simple. You are going to have to suffer the consequences for your choices.

That is the problem with this country. People do not take responsibility and try to blame things on someone else.

Sorry, but you get no sympathy from the folks on this board....we've been through too many cases just like yours over the years.....

Take it as a teachable moment/lesson learned that real estate doesn't always go up (contrary to what the NAR and realtors tell you).
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Old 10-23-2010, 09:56 AM
 
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CouponJack - I get what you are saying and I agree for the most part but I think there is something you are not considering here. When these units went under contract people assumed they would be able to get them financed. (I cannot believe they didn't require the financing clause before signing the contract but they did not - big mistake). Now the values are down and unless these buyers have tons of liquid assets they can't close.

The blog this morning discusses a recent appraisal that came in at 82% of contract price on a unit contracted in +-2005. That would probably be a 'best case' appraised value in todays market. (I have to agree with the comments that this was probably not a 'reputable' appraiser - values are down much more than 18%).

Anyway, many of those under contract cannot close as they cannot borrow the money to close. If I were one of them I would not close as I would not want to throw away any more money.

I hope this is a lesson to all to read your contract and have a good buyers agent before you sign!
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Old 10-23-2010, 01:37 PM
 
58 posts, read 89,361 times
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I ask for no sympathy. But let me ask you this question. And I really don't know the answer. Should we allow contracts that are not contingent on financing? I am a capitalist like everyone else. But I wonder what purpose this serves. The second question is in regards to appraisals. Should we allow contracts that don't have an appraisal contingency. And here is my point. I have bought 3 pieces of real estate in my lifetime. It is not something I do for a living. I think you could have some protections ... at least make it a choice or have a warning label...Now, I cannot sit here and tell you that any of this would have made a difference to me when I bought. But I certainly understand what I did wrong now and will never do it again. But it would be nice not to have to learn the hard way. I know there is a balance between lots of rules and allowing free enterprise to do its thing. But one thing I do admit to. To sign a contract with this kind of money and not have a professional evaluate it was idiotic. About 200+ 'smart' people made this admittedly egregious error at the Vue.
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Old 10-23-2010, 04:00 PM
 
7,109 posts, read 9,749,569 times
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I have not been following this thread so forgive me if I am stating something that has already been noted.

Regarding no financing contingency:Common sense would suggest that "Hey, I am going to lose my downpayment if someone doesn't give me the loan". Right? I have never had an attorney close on a property for me that didn't warn me about one thing or another that might fall thru the cracks on the deal. That's why the attorney is sitting next to you when you sign a contact.

I'm wondering why there weren't any "escape clauses" in the contract. Or was it a case of GREED that blinded the signers of the contract? Like "I'm going to get this damn property no matter what and resell it at a profit."
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Old 10-23-2010, 04:15 PM
 
171 posts, read 278,194 times
Reputation: 95
Quote:
Originally Posted by vuebuyer10 View Post
I ask for no sympathy. But let me ask you this question. And I really don't know the answer. Should we allow contracts that are not contingent on financing? I am a capitalist like everyone else. But I wonder what purpose this serves. The second question is in regards to appraisals. Should we allow contracts that don't have an appraisal contingency.......About 200+ 'smart' people made this admittedly egregious error at the Vue.
On your first two points I would say that at the time of signing, you had no issue with it and it's only an issue now because it did not work out as you had expected. In this case, you signed a contract promising to pay a builder if he would take the risk to build the building. No doubt the lack of contingencies was there for the purpose of putting the ones promising to pay, in the position of having to keep their promise.

On this and your earlier point that you should get a reduction now, you and the others seem to have an expectation that you signed a contract that places all the burden on the builder. i.e. If prices go up, then you keep the increase, but if prices go down, the builder is supposed to protect you. I'm not sure why a builder would agree to such terms.

Two possibilities present themselves:
  1. People bought these things to live in. - Then current price should not matter. Buy it, suck it up, and enjoy the place as intended.
  2. People bought these places as investments. - Well..... investment means risk money for return. In this case the risk was a bad one and you lost. It isn't the first time an investment went bad. Probably won't get much sympathy on this one.
Finally, I question the description of "smart" as applied to the purchase of a 50 story residential tower condo in a city that has no land pressures, no population pressures, and which is located in the middle of a pile of parking lots. I thought this building and 210 Trade were follies at the time, and that seems to have been proven out. Anyone who has lived in a city where these things have to be built will know and will tell you that living in such a tower usually isn't that desirable. There are some huge livability issues once one gets on the higher floors. But that is a digression. I would disagree that a purchase in this condo or any condo at such prices in a city like Charlotte was a good move.
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