Questions about new contructions and prices (credit, attorney, real estate)

[talkingbooks]

I have a contract with Richmond American Homes for a new construction. The problem is the base price of my house was 644000. However Richmond Homes has lowered the price for that same exact house in the same exact developement by 100k.

I have not settled on my house and I was told by the sales manager that Richmond Homes have agreed to lower the BASE price for the other homebuyers in the community but will not lower the price on my home because of the type of promotion they offered me at the time I signed the contract. So now Richmond Homes have basically given me an ultimatum to either pay the higher base price or be released from my contract. So the question is : If the builder lowers the base price prior to settling am I entitled to the lower price regardless of the type of promotion I recieved? Please advise

[lscalder]

No they are telling you BS. What you need to do is let them know either you lower my price by 100k or I take my business else where. Their are too many builders out their looking to offer way better then the builer you offer.

[ESFP]

No kidding! Becareful of any time limit to cancel your contract. Then check other builders for a better deal (with equal quality, of course). This must be quite a nice house to have that price for building. It would seem negotiable. You could even cancel and start over with the same ones, but I'd suspect they would be flexible to keep your business. Keep an attorney nearby, as this much money will bring out the worst. If they are going to let you cancel with no penalties, get it in writing! Get everything in writing. As always in real estate, if it's not written, it didn't happen.

[TuborgP]

What was the special promotion you got and what concession did it involve from the builder? It would appear they gave you something special and are you willing to give that up to get the lower price?

[lscalder]

If they are now offering 100k off of base price its either you request 100k as well or walk away from the table because your house no longer worth the agreed price its now worth 100k less.

[talkingbooks]

The promotion was called Buyer's Advantage and it included about $87k in Design Center options which was a part of the original 644,000 meaning that the 87k was a part of the price whether you wanted the option or not. I can only assume if the would be buyer did not want the design center options, they would have gotten some sort of credit toward the price or maybe toward another option not mentioned in the promotion. This was not something RAH gave to me exclusivly. In fact a lot of buyers signed contracts under this promotion which lasted for about a month or 2. Unfortunatley, I think a lot of those buyers were released from thier contracts for whatever reason. However, I and maybe just a few more people are the only ones under buyer's advantage.

Since the last posting, the base price for that style of house has gone down again from 544,990 to 514,990. My realitor has schedule a meeting with Richmond American Homes management. If the answer is still no , then I'll just have them build the bigger house (5000 sqft) for the new base price of 579,990( originally priced @700,990).

[Annieproductions]

Relatives of mine have moved into a complex built by this builder...knock on doors of your prospective neighbors and ask how their house is holding up since they have moved in. The complex my relatives live in have nothing but complaints about their houses from cracks in the foundation, to problems with leaking windows, and central a/c units. Good luck to you, and negotiate, negotiate, negotiate!!!

[Annieproductions]

Oh and if there aren't any doors to knock on (complex still being built) find other complexes they have built in over the last 3 or so years.

[Rmx Christina]

I'm glad you used a realtor. My guess is the builder is offering less incentives at this newer price. I saw a new home development and they reduced over $100K. I went inside to check it out....now they were not offering the deck, the finished basement, the morning room, the brick front, the elevations...etc. I ended up walking out.

If you feel the value isn't there...talk to your realtor...there may be a clause that can get you out...your realtor will know what I'm talking about...that could be an angle to get out...but ask your realtor...I don't know the full situation.

hope all ends well.