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I'm just curious. How do so many people buy a house that isn't built yet? I know I'm a nervous Nellie, but gosh, I would never plunk down money on anything that I couldn't see first. Jump up and down on the floorboards. Flush the toilet. Inspect the breaker box. You know, all that stuff.
You're not buying anything until you sign that huge check over from the bank at the closing table. The earnest money and contracts are an offer to purchase which becomes binding if all conditions are met. There are a number of reasons deposits can be returned if expectations are not met. Even assuming the builder does a wonderful job and performs beyond the contract, one can still walk away from the purchase, just forfieting earnest money.
Quote:
Especially when you're dealing with a builder who's "struggling":
Struggling homebuilder Hovnanian offers deep disounts - Sep. 13, 2007 (broken link)
What happens if they go bankrupt?
It doesn't mean they can't follow through and do a good job. Otherwise I'd say stick to flying on 1 or 2 airlines only since a handful of them always seem to be on the brink of bankruptcy as well!
Well, there's at least one other recent thread here relating a horror story about someone trying to get their deposit back on a new townhome that never panned out. And, unlike some lucky people, I cannot be lackadaisical about the possibility of walking away from thousands of dollars in earnest money. Or maybe taking several years and lots of threatened litigation to get it back.
And as for buying a plane ticket in advance: you're only risking a couple hundred bucks!! And the government tends to bail out bankrupt airlines. Not that it should, mind you.
Quote:
Originally Posted by tlh1005
You're not buying anything until you sign that huge check over from the bank at the closing table. The earnest money and contracts are an offer to purchase which becomes binding if all conditions are met. There are a number of reasons deposits can be returned if expectations are not met. Even assuming the builder does a wonderful job and performs beyond the contract, one can still walk away from the purchase, just forfieting earnest money.
It doesn't mean they can't follow through and do a good job. Otherwise I'd say stick to flying on 1 or 2 airlines only since a handful of them always seem to be on the brink of bankruptcy as well!
Well, there's at least one other recent thread here relating a horror story about someone trying to get their deposit back on a new townhome that never panned out. And, unlike some lucky people, I cannot be lackadaisical about the possibility of walking away from thousands of dollars in earnest money. Or maybe taking several years and lots of threatened litigation to get it back.
And as for buying a plane ticket in advance: you're only risking a couple hundred bucks!! And the government tends to bail out bankrupt airlines. Not that it should, mind you.
Well the problem is that some people ARE lackadaisical about the process in general. But this happens in the case of buying existing homes as well. People do all sorts of crazy things like buying without getting an inspection, or putting all of the eggs into one basket with agents and lenders they don't really trust. I think there is a certain amount of risk in every real estate transaction but one can always minimize it by staying on top of things and doing the proper research... This is another one of those reasons why realtors are always preaching that even when building new construction you should have an agent working for you.
I'm not sure what townhome thread you've mentioned but I am guessing it's KB Home Countrywide? At any rate, *most* cases I hear about when earnest money isn't getting returned is usually due to someone not following through and not reading what they've signed. Some of the instances may have elements of unethical behavior on the part of the lender or builder but the good guys want to make you happy enough that you close and everyone makes their money. When you run into someone opposite of that, unscrupulous, if the buyer has followed through they should be able to get what was signed for or the money back.
As far as the airline comment goes, I wasn't specifically talking about getting the money back; I was referencing the airlines' ability to provide the goods/service contracted for, getting you to your destination safely. Worth more than a $300 plane ticket! My point is that just because KHov is experiencing the problems of the real estate industry along with most others doesn't mean they can't build the house a buyer expects them to. That being said, I would believe bankruptcy is still a non issue. Earnest money is kept in escrow and ONLY released once the sale is completed, BOTH parties agree to the release of it, or a court official makes a ruling of who it's released to. At least so it goes here in NC.
I just received an email from KB homes about a moonlight madness sale from Sept 21-22. Looks like I answered my own question about other builders doing sales
I just received an email from KB homes about a moonlight madness sale from Sept 21-22. Looks like I answered my own question about other builders doing sales
Can you post what you received in the email? Or maybe PM/DM?
KB is having a MOONLIGHT MADNESS sale, which means they will give incentives (money off) on their inventory homes.
Still, a good idea is to check the comps.
Sometimes, they'll raise the prices (production builders do this alot) and then show you a reduction, which may look like $10,000 but in reality is only $3,000!!!
KB is having a MOONLIGHT MADNESS sale, which means they will give incentives (money off) on their inventory homes.
Still, a good idea is to check the comps.
Sometimes, they'll raise the prices (production builders do this alot) and then show you a reduction, which may look like $10,000 but in reality is only $3,000!!!
Vicki
Years ago when there was a quota on imports a friend of mine responded to a full page ad offering $2,000 off on a Nissan Maxima. This was a $13,000 car. He flew off to the dealership and having sold cars at one point early in life knew to be wary. He came back saying he thought a deal meant you paid less then full price. Turns out you got a $2,000 discount after their $2,500 markup. Knowing the market he knew it was still a $500 markup like everyother Nissan dealership.
Years ago when there was a quota on imports a friend of mine responded to a full page ad offering $2,000 off on a Nissan Maxima. This was a $13,000 car. He flew off to the dealership and having sold cars at one point early in life knew to be wary. He came back saying he thought a deal meant you paid less then full price. Turns out you got a $2,000 discount after their $2,500 markup. Knowing the market he knew it was still a $500 markup like everyother Nissan dealership.
Moonlight Madness sale... mostly on quick move-ins... and they'll be open late sept 21 and 22. Are the deals really that good? I can't tell
KBHome - KB Homes Quick Move-Ins Are Available Now (http://www.kbhome.com/quickmovein~RegionID~15~c~e.aspx - broken link)
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