Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Arizona > Phoenix area
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-03-2009, 06:51 PM
 
Location: Sonoran Desert
39,129 posts, read 51,428,209 times
Reputation: 28386

Advertisements

Quote:
Originally Posted by Captain Bill View Post
If they negotiate putting the money into an escrow account, there must be a clause that states that the money is fully refundable.

However, what they're telling you is that they need your money for working capital. That would be my red flag to run, not walk, away from that builder.
All the builders do that (keep your money in their "escrow") and have for a long time. At least that has been my experience buying homes. I think the amount is unusual. He says the builder is Shea and they are pretty reputable.
Reply With Quote Quick reply to this message

 
Old 03-04-2009, 12:38 AM
 
294 posts, read 992,657 times
Reputation: 145
Quote:
Originally Posted by altus2006 View Post
This is not true. Condition and location are more important when figuring price than age.

altus2006
i would argue that all other things held equal a 2009 built home would be worth more and easier to sell than an older home.
Reply With Quote Quick reply to this message
 
Old 03-04-2009, 10:27 AM
 
551 posts, read 2,731,031 times
Reputation: 261
Is it possible that you have decided not to go with their "preferred lender"? I know that some new home builders practically insist that you use their preferred lender and will tell you anything (including that your escrow is not refundable or that you have to pay closing costs upfront) to make sure you do not try to use another lender.

As others have said, this is a buyers market. If you can't come to an agreeable solution, then find another builder and/or location. Or better yet, save yourself up to 50% of the cost of a new house by buying used, short sale, foreclosed, etc. There are a lot of foreclosure houses in the greater Phoenix area that are less than 2 years old and have never even been lived in!
Reply With Quote Quick reply to this message
 
Old 03-04-2009, 01:34 PM
 
Location: Tempe, Arizona
4,511 posts, read 13,611,915 times
Reputation: 2201
Quote:
Originally Posted by Ponderosa View Post
All the builders do that (keep your money in their "escrow") and have for a long time. At least that has been my experience buying homes. I think the amount is unusual. He says the builder is Shea and they are pretty reputable.
Yes, but the market has changed. Builders have to be flexible to get buyers. Shea may be reputable, but so was Fulton Homes, and Woodside Homes, and .... Shea is not immune to the market. At least the AZ Dept of RE is now requiring that all builders in financial trouble keep earnest money in a neutral escrow account. Shea is not on their list and I hope they can avoid it.
Reply With Quote Quick reply to this message
 
Old 03-04-2009, 01:49 PM
 
Location: Sonoran Desert
39,129 posts, read 51,428,209 times
Reputation: 28386
Quote:
Originally Posted by rjrcm View Post
Yes, but the market has changed. Builders have to be flexible to get buyers. Shea may be reputable, but so was Fulton Homes, and Woodside Homes, and .... Shea is not immune to the market. At least the AZ Dept of RE is now requiring that all builders in financial trouble keep earnest money in a neutral escrow account. Shea is not on their list and I hope they can avoid it.
I never said they shouldn't or wouldn't be flexible. And I cautioned about leaving money with the builder in these times above (did you read the thread or just jump on the one post?) I just said that holding your money for you is standard practice for builders and has been for some time. The OP asked if this practice was unusual or illegal or indicative of a shady builder. It is not.
Reply With Quote Quick reply to this message
 
Old 03-04-2009, 02:46 PM
 
Location: Pinal County, Arizona
25,100 posts, read 39,336,967 times
Reputation: 4937
When the money is given directly to the Builder, it DOES NOT go to an escrow account. It goes into their GENERAL OPERATING ACCOUNT.
Reply With Quote Quick reply to this message
 
Old 03-04-2009, 02:50 PM
 
Location: Pinal County, Arizona
25,100 posts, read 39,336,967 times
Reputation: 4937
The link I am providing is to the Arizona Department of Real Estate - and their list of Homebuilders in Financial Trouble

http://www.re.state.az.us/PUBLIC_INFO/Documents/Homebuilders_In_Trouble.pdf (broken link)
Reply With Quote Quick reply to this message
 
Old 03-04-2009, 10:04 PM
 
Location: Sunny Phoenix Arizona...wishing for a beach.
4,300 posts, read 14,979,928 times
Reputation: 813
Quote:
Originally Posted by TIFF116 View Post
Hi all,
I am a 1st time homebuyer and would like any input or advice you have working with a builder. I finally found a home I would like to purchase and as soon as I read through the contract it stated, "for any reason the builder backed out, they could keep my earnest $". With all the builders suddenly going bankrupt, I could not take that chance. I basically was asked to put 3.5% earnest & pay closing cost. The sales rep. flat out told me, don't come back until you have about 12k! I am confused, the last time I checked it was a "buyers marked" I thought they would be estatic for my sale. Especially knowing that I have an excellent credit history and at least 6mos in reserves (after paying the 12k) What is the deal? I am a little dissapointed, because I haven't been able to find anything that compares and the location/school district was perfect. Is this what all builders in AZ are doing now??

Do yourself a favor and keep looking.
Reply With Quote Quick reply to this message
 
Old 03-10-2009, 07:13 AM
 
67 posts, read 337,631 times
Reputation: 66
Go to this website for the latest info on Homebuilders in Trouble....
http://www.re.state.az.us/PUBLIC_INFO/Documents/Homebuilders_In_Trouble.pdf (broken link)

We used to live in Seville before moving to VA. Nice place. Shea is a decent homebuilder. They are NOT on the list. We love their floor plans. What do you want to know about the homes in Seville??
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2022 data
Loading data...

123
Hide US histogram


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Arizona > Phoenix area
Similar Threads
View detailed profiles of:

All times are GMT -6. The time now is 10:25 AM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top