How to Get Earnest money back from Homes (real estate, how much)

[anand]

Hi There,

I have done a contract with [MOD] name removed [/MOD] for single family home some 4 months back and I have to close in next 3 days. We were given price protection from [MOD] name removed [/MOD] home when we signed the contract stating that if they reduce the base price , they will give me the current base price. After i signed the contract and during last month they start playing a gimmick instead of reducing that base price they would now offer incentive of$15000 off on options, and then came up with another deal ( like they two different floor plans like 1947 and 2198, and the difference in amount was about three thousands dollors and obviosuly everybody selected the 2198 model). They discontinued the 2198 and reduced the base price by 20,000 on other model. so that they don't have to give money back to customers. I am first time home buyer and when i came to know that I will be paying more the actual market price for my home. I don't see a reason to close. I went to [MOD] name removed [/MOD] they say the cannot do anything and asked me to back off and lose my earnest money. (as this is not one of the criteria for refunding the earnest money). I feel like they are trying to rip me off and i am helpless. SO please,pleasem suggest me something to get my earnest money back from [MOD] name removed [/MOD] .

Please give me suggestions

Thanks in advance for reading and providing suggestions
Anand

[ferrickhead28]

Yikes.
I have no clue on any suggestions to tell you. I'm afraid to say, you are not the only one thatModerator cut: name removed homes has done this to. I actually live near a Moderator cut: name removed homes and I hear the horror stories almost on a weekly basis. My heart goes out to you, that is such an unfortunate ordeal to go through.

I'm glad I personally did not buy with Moderator cut: name removed , but went with a more "honest" builder and I have been 100% happy that I did!

Good luck to you!

PS- I think if you do a search of Moderator cut: name removed on this forum, something might come up. I believe I read a similar situation not too long ago.

[lottamoxie]

I'd write them a very clear letter, outlining what you expect back, and exactly why you are dissatisfied, and copy it to the Better Business Bureau. I'd also let them know that you will seek legal remedies if they don't refund your earnest money.

I *almost* purchased a Moderator cut: name removed home and then started doing research on the builder and then ran in the other direction. Yikes.

Best of luck.

[slynn41072]

I would talk to a real estate lawyer. Are you using a buyers agent? Maybe they can recommend something?

[thomasj]

I always make sure not to happen such suprises to my clients when they buy. This is why you need to have a buyer agent who work EXCLUSIVELY for you, not for seller. The agent at builder's office working for seller, not for you. Moderator cut: TOS Violation

[anand]

Hi Thomas,
I already have a buyers agent and he is working with me on this issue, but as he says that he does't see any way of getting the earnest money back.
Thanks to all of you for replies and suggestions. I would love to more suggestions. I just want to get the money back without any legal hassels, i don't know the consequnecs i have to face if i get alegal route.

[coltank]

You're not going to be able to get your earnest money back. It's the same as if the market value went up, they couldn't get more money from you(well, you wouldn't give it to them). You have a contract with an agreed upon price.

[anand]

Well, I do understand that i would not given them the money abck to them do you think after they give me the price protection, they are fair on their part. I don't think they should penalise me for signing the contract with them

[sls76]

I don't think legally there's much you can do. I do think that they might negotiate a little depending on how much of a deposit you put down and how likely it isModerator cut: name removed could quickly resell the house at a price close to your contract price. So, if you put $20k down and they think they could sell it pretty quickly for within $15k of what your contract price was, they might tell you to get lost, but if you only have $5k down and they think it might take a while to get it sold and the new contract price might be significantly less than what you were paying, then they might have more reason to try to keep you happy. I know in our neighborhood, inventory homes generally sold at a significant discount (up to 15%) and that was in a much healthier market. Use some game theory and base your move on what their strongest move is.

[frogandtoad]

That stinks, but they could afford a long protracted court case and you would be out way more than what you are seeking. They of course know this which is why they are not worried at all. I imagine they left themselves some wriggle room in the contract (even if you don't see it that way) so they could do things like this.

Your best bet is probably to just close as expected, look at it like you were willing to pay that before and now you are a getting the house for the same price, plus some extras, and enjoy the home. Don't dwell on it--it will only cause you aggravation but no amends.

In time, prices will go back up anyway. You can't ever guarantee you'll get in at the lowest price on ANY home. The people who bought our last house from us would be out many thousands if they tried to sell right now. It's just the way the market works..

ps--make sure you can 100% prove that the base price has gone down if you do decide to pursue this. Are they selling the exact same model (even if under another name) for less than they sold to you? If not, I don't see how you would have much to stand on. Even if they have reduced the base price, they have big corporate wheels and a battle would not come out well for you.....