How do I know that I am on the priority list? (feedback, gated community)
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I live in Los Angeles, California, and I am looking to buy a house in Los Angeles County.
My partner and I are plan to buy a brand new home in a gated community. Since we only found about these new homes during the past 2 weeks, the Plan that we want (in Phase 2) is already sold out and we do not care for the location of the very few other available Plans that are left. So we have decided to wait until the next phase (Phase 3) opens (approximately some time in Spring of 2014) to hopefully get a priority of the Plan and location we want, when Phase 3 opens. We were told by the sales staff that once we are pre-qualified with their lender, then they will place us on a Phase 3 priority list. We are now pre-qualified with their lender. The lender told us that he has nothing to do with the Phrase 3 priority list and he said the sales staff is responsible for that list. So before we go back to the sales staff to be placed on the Phrase 3 priority list, how do we ensure that there is such a list and that we are being placed on it? We really want a home now and these homes in Phase 2 have almost sold out in less than 2 weeks of them going on sale. Yet we are willing to wait until next Spring to hopefully get the Plan and location we want, yet we just DO NOT want to be told next Spring that we were not on the priority list or that there never was such a list or that the list got lost or hear some excuse that causes us to lose our current priority on selecting a house in Phase 3. Their lender can confirm that we are pre-approved, but what are the next steps we can take to ensure that we have a priority on home selection when these homes go on sale next Spring? Since this is our first time dealing with a priority list, we just want to make sure that we cover all of our avenues to ensure that we will have priority once the Phase 3 homes go on sale.
In the mean time keep checking the same neighborhood for resales. You might get a 1 year old home with lots of upgrades for a deep discount over the cost for a brand new home.
This is pretty common when new homes are still going up. Since most folks want brand new and want to pick their lot/colors, then the resales have to discount their sales price much lower than what the new homes are going for. Sometimes the discount is very nice and often you get a bunch of cool upgrades for no extra cost.
Financially, this can be a very smart move over paying extra for the same floor plan with fewer upgrades that is 1 or 2 years newer.
If you don't trust them to tell you the truth about the priority list do you really want to buy a house from them? You could always ask for confirmation in writing/email. Would it really matter though? I can't imagine they are legally bound by the "list".
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"I didn't do it, nobody saw me"
(set 3 days ago)
Location: Ocala, FL
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OP, remember that their are no guarantees in life but death and taxes. A "priority" list is certainly no guarantee of anything, just a way to make you feel good. Even if you get in writing, they could easily sell to someone else. It comes down to a matter of trust and what your instincts tell you about the builder/developer. Best wishes to you.
And if you have brought a realtor with you, that might have given you some additional leverage. No builder wants realtors to 'get the word out' that they've screwed over a potential buyer. I'd be inclined to believe that the clients WITH realtors are on a higher priority list. . .
You have reason for concern because the builder has absolutely no motivation to maintain a priority list. I don't doubt they will keep the list and even call you when they are available for purchase, all sales people do that with leads. I just wouldn't count on you having some preferred position.
I don't think there is much you can do other than keep an eye on the development. Pop your head in once a month or so now and once a week or so at the end of winter. You will get an idea on the progress.
As sware2cod suggested, keep an eye on the resale market. You have some advantages buying a resale.
I do not know how your developer does it but my last two home purchases were new builds in a development so I have some experience.
Normally a developer has something called a lot reservation. One can sign a contract and place a deposit reserving a specific lot. How far in advance and how large a deposit can vary. This reservation is usually for a set period of time during which all details (model, options, finance proof, etc,) are worked out. Lot reservations are refundable if all are not able to work out the details during the time stipulated.
One issue you might have is the developer has drawings. plans, etc. for the next phase but it has not be approved/platted by the local building authority. Until said time, the developer may not be in a position to accept a lot reservation.
Remember that money talks, $hit walks. Discuss a larger "retainer" to assure you a priority. Also the quicker you can settle all the details the more power you have versus someone off the street that loves the place. The developer has to separate the buyers from the lookers.
Many developers dislike realtors and buyers represented by them as they have to pay the realtor a commission. I never used a realtor for a purchase in a development and I have bought 4 homes in new developments. I have always had a lawyer review things before I signed. I have also used home inspectors that I paid for. Realtors are neither lawyers nor home inspectors. In my last sale, my realtor did a great job but she would not know a 2x4 from a 2x10....LOL
My experience was similar to Accufit's. We picked out a lot, gave them $1,000 and signed a very simple, one page, plain English contract. We could cancel at any time and get our money back. If we decided after the streets went in that we didn't like the lot we picked, we could change lots to anything that wasn't reserved by someone else, or cancel the whole thing. There was no financial qualification required at that point although there would be before we started building.
As it turned out, we were still looking at existing houses while we were waiting and ended up not building. We did get our money back promptly.
The only fly in the ointment was we were originally told the streets and sewers would be done by August and building could start shortly thereafter. Of course they ran into problems with the city and I don't think the streets were done until November or so.
OP, remember that their are no guarantees in life but death and taxes. A "priority" list is certainly no guarantee of anything, just a way to make you feel good. Even if you get in writing, they could easily sell to someone else. It comes down to a matter of trust and what your instincts tell you about the builder/developer. Best wishes to you.
Actually, I disagree with you. There are no guarantees in life except for death, taxes, AND that the older generation will complain about the younger generation.
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"I didn't do it, nobody saw me"
(set 3 days ago)
Location: Ocala, FL
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Quote:
Originally Posted by Species 8472
Actually, I disagree with you. There are no guarantees in life except for death, taxes, AND that the older generation will complain about the younger generation.
Ok, I will agree on the 3rd one.
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