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Old 01-13-2009, 04:26 PM
 
2,597 posts, read 7,051,590 times
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If they do sale it you are out the earnest money and all the $ paid for upgrades. This will allow them to sale it for less since they already have your upgrade money and EM. I am sure they would much rather you buy the home you agreed to purchase. Taking the losses you will encounter into account if you walk,you may consider lowering the price of your house for sale, prior to making that decision.
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Old 01-13-2009, 08:20 PM
 
Location: Sugar Land, TX, USA
759 posts, read 2,838,358 times
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If you like the home, keep it. i know a few people that walked away and took a loss in Telfair, but were able to get a decent inventory home for a great rate. It is what happens and the risk that both the Buyer and Builder are willing to take. I know a house that my friend walked away from is still on the market....it has been 4 months....but he made it "weird" in my opinion. and when you make a semi-custom house...well most people will not like it.

As far as sales in Telfair, Homes are selling...especially in the 70-90 foot lots. My wife tells me that many physicians are moving in that are affiliated with Memorial Herman Sugar Land, The Methodist Hospital Sugar Land, and St. Lukes Sugar Land...So that maybe the reason for all the sales.
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Old 01-13-2009, 10:00 PM
 
109 posts, read 523,673 times
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Quote:
Originally Posted by Jujuba View Post
VickiMBA, r u saying that even if they put the avail sign for the new house, we are still bind to the contract with them? Thanks for your info that's good to know.
We were sort of told them what if the price lower now compare to when we sign contract, and they said before we close there will be an appraisal that will appraise the house, if it's lower they will honor that, so we got nothing to worry about.
We are approved for 2 mortgages, but we do not want to. I'd rather sell the first one and move on.
We can't really ask our agent about the pricing since we got her through the builder.
Jujuba, you are legally bound by your contract until you and your builder sign a Termination of Contract. For most builders, the sales rep. does not have the authority to sign off on the Termination, and it must be approved at a higher level. Since each builder has its own lengthy contract which is devised by its legal team, I strongly urge you to carefully review the terms of your contract and addenda and consult an attorney specializing in real estate law should you have any questions or concerns. Also, see if you have a "Sale of Previous/Current Home Addenda". If so, then review the terms of the addendum. Most builders will not offer you this unless you (your agent) pushes for it, though.

You might also come across an "Affiliated Business Agreement Disclosure," wherein the builder discloses its interest in a mortgage company/lender. Therefore, your incentives are more than likely tied into using the builder's "preferred" lender. While this does not mean that the appraiser contracted by the lender (who has a business relationship with the builder) will inflate your appraisal (that would be illegal!), this does mean that the appraiser has probably done more than a few appraisals for that sales office. He'll have access to the contract sales from that particular builder and will mostly likely only use those in the comps. for your appraisal...PLUS take into account the list of options/upgrades that the rep. gives him. After all, why use data from resale when there's not a lot of it or from other builders when the ones from the same builder is more "relevant"? Thus, as others have posted, it is highly unlikely that your appraisal will come in below sales price.

You should really try to communicate your concerns to your agent. S/he owes you a fidiciary duty to protect your interests and it sounds like you need some personal attention to address your issues.

Best wishes...
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Old 01-14-2009, 09:49 AM
 
35 posts, read 139,658 times
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Thank you for all the input guys!
Yes, the appraiser is from the builder, though they said the appraiser didn't work for them. And we also using their lender since they cover 2% of the closing cost.
Essentially, we really like the house. Although we considered it to be expensive, but it seems w/ the amenities, upgrades, lot & location that we get, it's better than any other builder deals.
We just torn since we haven't sold current one, did not want to pay 2 mortgage, and afraid we're losing the new one...
The builder suggested we use re-cast. Anybody use this before?
BTW I checked and we didn't have the Sale of Previous/Current Home Addenda.
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Old 01-15-2009, 09:20 AM
 
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Try to delay the closing to buy more time for yourself. Sounds like a Village Builder home...
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Old 01-15-2009, 06:32 PM
 
109 posts, read 523,673 times
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Jujuba,

My advice for you is to get together with your agent and your builder's sales rep. and try to work out a solution that's best for all. It seems like you really want this new home, but are worried about having two mortgages. I think you should follow the advice of the others here and see 1) about ways to get your home marketed more aggressively (i.e. dropping the sales price and getting your agent to advertise the reduced price, especially to other agents who have showed the home) and 2) if you can get your builder's sale rep. to give you an extension of time to close on your home. If you explain your situation effectively to them and show that you're making good faith efforts to get your home sold (i.e. the price reduction), then they are more apt to be understanding.

Also, have you considered renting your home out? You may want to have your agent list your home for lease as well as for sale. Chances are, it may be leased out before it's sold. That might help ease a bit of the burden as well.

Good luck!
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Old 01-15-2009, 09:59 PM
 
35 posts, read 139,658 times
Reputation: 20
VickiMBA, 2008Homebuyer, thanks for y'all advice.
Yes, our hearts are set on this new house and it is getting prettier by day now...
However, we know a house is only a house. We'd rather be stressing out looking for a new house if this one is sold than stressing out over 2 mortgages in the uncertainty of the current economy.
We cut the price since last week, below the appraised value, so hopefully it will be sold soon.
I have hinted my agent that we would like to be safe and get this one sold first before closing the new one. Hopefully she'll market it more... somehow...
We're seeing showing's traffic increase.
Keeping our fingers cross...
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Old 01-19-2009, 07:13 PM
 
3 posts, read 6,632 times
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Smile Did you get out of your contract?

Did you talk to your builder and how did it go? Which builder are you with? I am very close to the closing date and would appreciate any input you may have.

Thanks!

Quote:
Originally Posted by Jujuba View Post
VickiMBA, 2008Homebuyer, thanks for y'all advice.
Yes, our hearts are set on this new house and it is getting prettier by day now...
However, we know a house is only a house. We'd rather be stressing out looking for a new house if this one is sold than stressing out over 2 mortgages in the uncertainty of the current economy.
We cut the price since last week, below the appraised value, so hopefully it will be sold soon.
I have hinted my agent that we would like to be safe and get this one sold first before closing the new one. Hopefully she'll market it more... somehow...
We're seeing showing's traffic increase.
Keeping our fingers cross...
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Old 02-21-2009, 03:47 PM
 
1,666 posts, read 2,865,582 times
Reputation: 2185
Quote:
Originally Posted by Jujuba View Post
We are building new home in Telfair, should be ready by end Feb, at $108/sq ft. Our current home right now is still on the market. We would like to sell current home first before move in to the new one, to be safe.
The builder has been pressuring us to set the closing date, saying if we wait to sell for the current home, they would have to put the avail. sign and show to other ppl. They also hinted that they can sell it quick.

Do you think we get a good price? We are thinking to try to negosiate the price down a bit. I mean other communities seems like cutting their base price. A friend in NT said the prices in NT is also down. So has anybody seen Telfair price slid a bit?

Does anybody know how's the telfair demand currently? Do they really sell that fast?

Thank you

It's amazing to me how many people watch the national news and just assume everything is bad in Houston. Let's take Telfair for instance. Sales were UP 10% in 08 over 07. Also the #3 selling community in all of Houston. Houston is also the #1 ranked home market in the country according to Builder Magazine.

And negotiate the price after you have signed a contract? Give me a break. Does your signature mean anything? This is why earnest money is taken, so it can be kept if you go back on your word.

It is very expensive to build a home, and to back out at the last minute is unacceptable. The builder will most likely have to sell it as an inventory home for much less of a profit margin.

I could go on and on......
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Old 05-17-2009, 10:30 AM
 
50 posts, read 164,328 times
Reputation: 27
I know this is an older thread - but Jujuba, I am curious as to what you ended up doing...We are buying an inventory home in telfair for about $116/sqft -- so it sounds like you are getting a pretty good deal depending on which builder you went with.
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