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you are paying an attorney and a real estate agent - your Buyer agent - to assume the liability for you, however you want to continue getting in the middle and having direct communications with the builder and his agent(s).
ask those 2 folks you're paying what the risks are, and ask them to get into the midst of this for you and detach yourself from the process.
you are paying an attorney and a real estate agent - your Buyer agent - to assume the liability for you, however you want to continue getting in the middle and having direct communications with the builder and his agent(s).
ask those 2 folks you're paying what the risks are, and ask them to get into the midst of this for you and detach yourself from the process.
Exactly. Why use an inexperienced novice (yourself) to do what experienced professionals do better everyday. The email response you received shows that you are out of your league.
Who was the development done by? What was the name of the company you signed the original contract with and what is the name of the company that sent you the email. This is very confusing to me. We are missing so much information that its difficult to help you. Short of publishing your entire contract and all email on here my advice and the advice of the others is to stop talking to them and see what your lawyer says to do.
Hot Market....that is something I am not sure of. Some people say it's a Hot Market, some people say it's just too much Hype, others say they are expecting a Market Correction to take place. If anyone has expertise in the Atlanta, GA area about whether this time is in a Hot Market, feel free to share your thoughts....
I will say that a friend of mine who lives 5 minutes from this development...when I asked him a while ago about his thoughts with this area and the price, he told me that he spent the same amount of $ on his own home ~10 years, yet the current value of his home is pretty much around the same prices as what I will be paying for this new home. Apparently he bought his house (also new construction ~10 years ago) at the wrong time just before the Market crashed. So from that perspective, I thought this would be a decent price to get in.
The area (with current zoning of this development) has very good schools. With the current data available, the ratings with all the assigned schools are 10 out 10. I spoke to a someone who lives in the first phase of this development and he says his family loves the schools and is happy with the house.
I met another Realtor at the development over the weekend as I was just walking around the area. Apparently, he represents two buyers that have also signed up for homes in this development, and they are equally upset about this situation. But the difference is these buyers are buying these homes with the sole purpose of them being investment properties.
Quote:
Originally Posted by SmartMoney
Brandon nailed it. Jumping ships is not the answer without its own issues. You don't indicate (or I missed it) if you are in a hot market.
Question to ask: are there any facets the developer still needs to complete, or are the extent of his delays over with? ie, where else can the developer slow down this home? (This isn't a condo is it?)
Developers are notoriously delayed. Nothing saying you don't get out of this one contract and waltz right back into another. Do pay a few hundred dollars and have an attorney spell the contract out to you. It sounds like your guy is confident in his position and he went back thru the notes and emails to confirm no promises were made. I am also willing to bet he could have heaped more on to you in way of emails spelling all this out to you showing you what was said earlier. He was too confident in his position. He also sounds like he wants the email to back him up from any possible litigation. (By the way, I 100% agree on communicating by email as a means for notes).
What your builder and anyone else that works for the builder isn't sharing (and this is only if your neck of the woods is anything like my neck of the woods, subs are being bribed off jobs to go to another job. It's cutthroat in the DC area, more work than qualified tradesmen. So, keep your eyes peeled, are there workers swinging hammers? Is the place hopping.....or it also could be the county is behind bringing electric and/or gas lines to the home. Or, the county is behind with their folks and the inspection process. Too many players.
You tipped your hand that your patience is thinning, so they may not be sharing details. I am willing to bet it will be by the book from here on forward. Sounds like you can both win, too. You can get your money back and the builder can resell at the current, higher price. Not everyone is cut out to be a new home buyer.
Everyone has an opinion and you know what they say about opinions......that being said go with your gut and the leanings of your attorney.
Most likely the builder is finishing up other houses (which you can check on) and is having cash flow problems until he can finish those up. Some communities have pretty high permitting costs and he might not have enough credit or cash to permit let alone pay what he might currently owe his subs.
It is great that he has had price increases but that may sound good for you being locked in at the lower price......but he is going to have to make up the money he loses on you somewhere else.
Big thing here...........DO NOT give him any other money for extras, such as upgrades or anything else as if this goes south you have no way of getting that cash back.
There are unscrupulous builders all over, but they usually are outnumbered by the good ones.
The bank won't play games once he has started and they will control the draws.......I would advise you to get owners title insurance also as this will protect you in the long run if the lot could be cloudy or the subs come back for cash...........things like this are rare but do occur and a few hundred dollars is a small price to pay compared to several 100k mortgage.
OP what has your lawyer advised you to do? From you communication from the builder:
"The development was not done by us. There was no way to control it [the delays] or “absorb” delays and account for potential closing dates of homes. We had been clear at the time of contract the start date was undetermined. It has been proven to me that we have communicated all along that homes have not been permitted or started. I feel like we have done exactly what we said we would do. The process of development and the timeliness of the development contractor are absolutely no reflection on our ability to complete the home. "
Reading this I still see nothing about a start or completion date. The way I read it is, the builder is blaming the development contractor. Is there a development contractor and who are they? I know the builder is Core Home Builders. It sounds like they are passing the buck and you are in limbo.
OP what has your lawyer advised you to do? From you communication from the builder:
"The development was not done by us. There was no way to control it [the delays] or “absorb” delays and account for potential closing dates of homes. We had been clear at the time of contract the start date was undetermined. It has been proven to me that we have communicated all along that homes have not been permitted or started. I feel like we have done exactly what we said we would do. The process of development and the timeliness of the development contractor are absolutely no reflection on our ability to complete the home. "
Reading this I still see nothing about a start or completion date. The way I read it is, the builder is blaming the development contractor. Is there a development contractor and who are they? I know the builder is Core Home Builders. It sounds like they are passing the buck and you are in limbo.
Get your money back. Now. Before the person with your money does a BK.
This^^^. Get the attorney to figure out how to get your deposit back, run away from this deal and find another house.
The troubles you are already having are only the beginning of the mess you're in for if you continue this deal. Even if they manage to somehow get your house built (at this point you are looking at next Spring at the earliest to have a finished house even if they break ground tomorrow), you'll be sitting in the middle of an unfinished development since the builder is obviously having serious money issues and will probably BK before the development is complete.
A house sitting in the middle of an unfinished development with a troubled builder will not be worth anywhere near what you agreed to pay for it so you will be sitting in the middle of an unfinished development with a house you're underwater on. Or if you're mortgaging the house, the whole deal may fall through before purchase as you may not even be able to get financing for it because it likely won't appraise for what you've agreed to pay for it. If you are unable to purchase the house because you can't get financing, you will almost certainly lose whatever deposits you've given the builder to that point since financing falling thru is considered to be a buyer breaking the contract.
Last edited by patches403; 10-26-2015 at 11:20 AM..
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