New Construction Price Drop (Howe: sales, loan, how much)

[GTBoyz]

If you purchase a new construction home from a builder and the price has since dropped, is there a way that you can get them to give you that new price?

[usc619]

Originally Posted by GTBoyz

If you purchase a new construction home from a builder and the price has since dropped, is there a way that you can get them to give you that new price?

If you haven't closed on the home yet, I would just pull out. If you have closed on the home then there's nadda you can do about it sorry.

[jfre81]

Once you've signed on the bottom line, it's over. You get what you've got.

If prices are dropping on new construction, there's probably some good reason for it...

[GTBoyz]

Originally Posted by usc619

If you haven't closed on the home yet, I would just pull out. If you have closed on the home then there's nadda you can do about it sorry.

Thanks for the reply. Here is the thing, I am happy with my purchase. However I have noticed since I purchased last December 2007 to present, the builder has dropped the price on the model I bought by about $7,500.00
I am closing on the home at the end of June and not being an expert here was wondering is there anything I can do or how should I approach the builder. Thanks.

[revive]

How much earnest money did you put down?

Realistically, you can ask for (at least) the difference between your earnest money and the price drop. Example, if you paid $4K in earnest money, then ask for $3,500 (=$7,500-$4,000) or else you're not going to close.

[GTBoyz]

Originally Posted by revive

How much earnest money did you put down?

Realistically, you can ask for (at least) the difference between your earnest money and the price drop. Example, if you paid $4K in earnest money, then ask for $3,500 (=$7,500-$4,000) or else you're not going to close.

I put down $1500 ernest money. So that would mean that I ask for $6000. ?? Really I can say I am not going to close? Do I have that much leverage?

[chris_ut]

Originally Posted by GTBoyz

I put down $1500 ernest money. So that would mean that I ask for $6000. ?? Really I can say I am not going to close? Do I have that much leverage?

You do if you are really willing to walk away from the deal. Nothing is final until closing and you can walk away now and only be out the $1500. That is a fairly significant price drop and will also lower the value of your home since your competing against new construction until they finish out your neighborhood so you would be screwed if you had to sell for unforeseen circumstances. Make sure you get the whole story from the builder first. Maybe they are giving less incentives now or they are closing out and dropped the price to move the final lots.

[usc619]

Originally Posted by GTBoyz

Thanks for the reply. Here is the thing, I am happy with my purchase. However I have noticed since I purchased last December 2007 to present, the builder has dropped the price on the model I bought by about $7,500.00
I am closing on the home at the end of June and not being an expert here was wondering is there anything I can do or how should I approach the builder. Thanks.

The bottom line is I DOUBT the builder is willing to lose a deal over 7,000 in today's market, if they don't give you that price reduction by the closing date then I would walk out PERIOD! $1,500 is not a lot of money when your talking about one of the biggest investment of your life.

[baggiegenes]

I would look to negotiate other things as well. Our builder had not dropped the prices, but I knew the market was somewhat soft so I just told them I wasn't going to close. Not only that, but I wouldn't terminate the contract either, so they wouldn't be able to put the house back on the market till after my closing date had passed.

They wouldn't lower the sales price because they wanted to protect the comps for other houses and subdivisions in the area, but they bought down the rate on my loan which will save me money in the long term.

You can also ask for them pay your closing costs and just take the money you would have spent at closing and put more down on the house.

[Supermac34]

I think by telling the builder you weren't going to close, you technically verbally terminated the contract if he so choose to call you on it.