New Construction home

[annerk]

Originally Posted by brokerdave

yes you will still get an appraisal. if your in a declining market, i would demand for a 10% off the appraisal price. also possibly consider consulting an attorney. find out how the bankruptcy could effect you and your development.

how completed is the neighborhood?

Because the builder is in BK, it would be up to the court to decide if they can make a change to the contract.

If the house doesn't appraise, the lender isn't going to loan. No loan, no closing. Depending on the mortgage clause (if any) in the contract, you might be able to just walk away. It's the chance a builder takes.

[scdreamer]

Originally Posted by meanstomyend

all of this attitude amazes me... you go to a builder, ask for a product, he gives a price and produces the product. Then even if he went above and beyond with the quality of his work, because the freak'n market changes by the end of the project people expect to put the screws into him like as if he screwed up... what a world.

I agree completely. I'm in a similar situation, with a new construction home that will likely be worth less than anticipated by the time it's finished, due to market changes. It's a little different because mine is a custom build, but I can't for the life of me imagine going back on our word due to forces beyond the builder's control. He's delivering exactly what we contracted for, and we're just excited to be moving into the house when it's all done, no matter what the external value ends up being.

How would you feel if the market value went up and the builder decided to increase the price $10K from the agreed upon number? I bet the contract would have more meaning for you then, wouldn't it?

No wonder the builder is bankrupt if that is the way people are treating their contracts!

[meanstomyend]

yup, if anyone is the blame it's the stupid customer... the contractor should be like "I'm not the idiot that wanted to build this house for this amount of money in a decreasing market". The contractor is just the poor fool that hasn't been paid yet. This makes me mad because all the consequences of the situation fall back to the fool making the overall choice: the customer. So I take a dim view of the original post thinking that someone else needs to take up the slack, and a dim view of all the recommendations saying that the contractor should pay. It's not his fault, he didn't do anything except build your stinking house the way you originally asked for it! In fact, the only poor choice he probably made was to accept these people as a customer...